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I went back to Corporate after 10 years and here’s what I discovered

After more than a decade outside the corporate world, I went back. As for the reason why I went back, I’ll share it with you next time, but for now I’d like to share with you why I resigned again…2 years since going back. There are 3 reasons: Health, Family and Freedom.

Health

Now that I am in my 40’s, I feel that my health is not where it was before. It takes me longer to recover from a strenuous activity, like playing in a competitive sports like basketball and badminton. When I was younger, there was no such thing as recovery time. After a bit of rest, I’m ready to go. Now, it takes me days to recover at least before I can compete again. I can’t keep up with younger players anymore.

I have already resigned from the fact that I no longer compete for the prizes, but only to enjoy the time to play and get myself play something that I love. I am happy that I can play these sports that I love.

Not sure if the pandemic had anything to do with it, but being inside the room for a long period of time has encouraged me to take more activities than I can probably handle now that I am a little bit older. 

It’s like revenge travel, but instead it’s revenge playing outside the house.

There were also instances where it took a little bit longer for me to recover from my coughs and colds. Maybe I am just getting a little bit older.

When I went back to work 2 years ago, the first thing I noticed was the adjustment I had to make in terms of the physical demands of work. Even though I was working at home, I now had to wake up a little bit earlier than I used to. I had to adjust my waking hours. It took a few weeks but eventually I settled into a routine that helped me.

The first weeks were brutal. It’s been a while to be in the corporate so the adjustment was expected but one of the things that really got to me was time spent doing nothing. As you know when you’re new to a company there’s normally a period where you are on bench while they are preparing to onboard you to your next project. But I wasn’t used to doing nothing the whole day. I spent the whole time going through training that I wouldn’t even know if I am ever going to use, or if they will be relevant. 

I took trainings and got my certifications. It’s like going back to school again. Fortunately, I managed to pass all of them and got exposed to new technologies. For that I am grateful. 

But mentally, the moments where you are staring at the clock and just waiting for the end of your shift to end is soul sucking. It’s like you’re wasting away your life to an unknown force. Every minute feels like a month that’s taken from your life…bringing you closer to your death.

My mental health was really challenged. I feel like, I can give more. I don’t want to be wasting the years I have left. You never know until when you are here on this earth. I don’t want to be wasting it just staring at a clock every day.

Family

One of the things that I value most is my time with my family, especially my wife and 2 boys. I had to adjust to the idea that my time with them will have to be shared with my work. Since I am in a company that is rendering 45-hour workweek. That’s 9 hours per day + 1 hour lunch, total of 10 hours per day. There was also a time when I had to endure an hour traffic going to the office and another hour back home. So that’s already 12 hours total. This does not include overtime hours whether paid or unpaid. I realized I am already spending more than half of my day working, without building anything that can have a residual income or a capital gain in the future. Perhaps the only thing that I am building is a reputation that I can deliver, which only my manager and perhaps his/her boss knows. I don’t feel like I am building anything in terms of developing a reputation across the industry I am working on.

One of the things that made me really re-think whether this kind of setup is the one for me is when my son attended a recognition program, for which he received an award. I was able to go there, but had to miss the medal ceremony because I had to attend a meeting at work. It pained me to see that because of work, I had to miss one of the important events in my son’s young life. I was there, but I could not even watch him receive the award. My son is very understanding when I explained it to him. But then again, that was a big deal for me personally.

The reason that’s a big deal for me was because my father missed a lot of important milestones in my life because of work. Money was always hard to come by. I remember that my dad was always doing so many stuffs just to earn money. I felt like it’s important for me to not let earning money be the reason why I can’t attend an important event in my son’s life. 

This year, our company started mandating return to office, and that started a huge adjustment in my part. The little flexibility that was available before, is no longer at my disposal. The last 3 months before I resigned, I was working 5-days a week return to office. In short, I was already working 10-hour days every day. I had to endure the commute to work and back home. I had to pay for things that I didn’t have to before, like parking, lunch, dinner. When I did my analysis, I was losing money compared to when I was working at home. The thing was, there are 3 resources that are important to me that is suffering: Money, Time and Energy. Obviously, with the additional expenses, I am losing money. With the drive to work and back home, I am spending a lot of time in traffic. Doing this every day took a toll on my energy and health. I had less time to recover. In the weekends, I can’t simply sleep at home because my family would want to go somewhere, because they too would want to get refreshed. That means additional expenses, the 2 days a week would become even shorter compared to the 5-day workweek. More importantly, my health was suffering because I had very little time to recover from the gruelling week. 

The type of work nowadays requires a lot of mental effort, not a no-brainer task like those in a factory setup. A lot of the things that consume my energy is in solving complicated problems and understanding different systems. More often than not, you have to learn a new system quickly and be ready to get up to speed immediately. Some are technical in nature and time is not always on your side.  Often times, you don’t even have an idea whether something will work or not. You just keep the faith and do the best you can. But everything has a price. And most of the time, the price to pay is in degradation in health physically, mentally, psychologically. The more complex the project you are working on, the more stakeholders you have to work with. The technical problems are the easy part. The hard part is in dealing and communicating with people. Different personalities. Different priorities. Different ways of looking at the problem and how to approach it. Again, these kinds of problems take a toll on your health.

That’s why recovering my health was important for me. Physical health, mental health, psychological health. There were moments where I was feeling really sad and it made me decide to take a break from all these things.

My health is important to me and at this time of my life I am choosing myself.

Freedom

Perhaps I am not really cut out to be an employee. My spirit is too stubborn, and I feel my whole being is screaming for freedom.

Growing up, I have always been someone who does not enjoy getting orders from someone else. Something deep inside of me makes my blood boil. Perhaps it’s ego. Perhaps it’s something else. Perhaps I’m just stubborn. I don’t know.

Don’t get me wrong. I am willing to work. I also deliver results. I am recognized consistently in all my works and they compensate me both in awards and bonuses. More importantly, I can work with anyone. I am mature enough to know when something is important. It means I have to swallow my pride and not sweat over small stuffs. Most of the time, just letting it go to save your peace of mind is the better path. Life is short to be getting worked up about things at work that you wish to be better.

If there’s a lesson I learned during the Covid years, it is the realization that there are only few things in this life that is worth your trouble. I also learned that you can live life without a lot of the other stuffs. Life doesn’t have to be complicated.

The pursuit of material things? Recognition? Pleasing other people? Never ending hustle for money? I have since learned to let them go and seek freedom instead of carrying unnecessary burdens all your life.

Perhaps, this is just part of getting older. After all, we were born into this world with nothing. It is but fitting that when we finally go back to the one who created us, we will also take back nothing. To live with freedom, one must be willing to let go and learn to live lighter.

Categories
Life Updates Personal Finance

Top 10 Emerging Influential Blogs in 2010 (for Personal Finance)

While reading through my good friend Tim’s Every Peso Count blog, I came across the Top 10 Emerging Influential Blogs in 2010 Writing Project.  It’s a very interesting project which aims to discover and promote the emerging blogs for the year, and get a chance to be involved in a worthwhile writing project.

I thought it would be a good idea to come up with my own list as well.  Here’s Rich Money Habits’ Top 10 Emerging Influential Blogs in 2010 (at least for personal finance category) in no particular order!

Top 10 Emerging Influential Blogs in 2010

#1 – Rich Money Habits by akosiallan.com

Of course, Rich Money Habits by akosiallan.com is in my list. 🙂 I believe in my heart that this blog is emerging as one of the most influential personal finance blogs in 2010.  My hope is that this blog has been a positive influence in helping a lot of people build better money habits.  As evidenced by the steady growth of its readers from practically zero before its (re)launching last September 2009 to the 254 subscribers as of this writing, the mission of this blog to elevate the money habits of Filipinos is slowly becoming a reality.

#2 – Financial Samurai

Sam’s Financial Samurai is one of my favorite financial blogs mainly for its straight from the gut approach to personal finance.  Money mysteries are revealed through the very interesting, and sometimes unconventional articles from this blog.

#3 – Man Vs Debt

Adam Baker’s Man Vs Debt blog’s growth has been simply phenomenal! I’ve been following his blog for quite some time now and has witnessed how the blog evolved from dealing with debt to making an online income in a very short time.  With support from A-list bloggers in the personal finance blogosphere like J.D. Roth of Get Rich Slowly or even Leo BaBauta of Zen Habits.  ManVsDebt is an A-list blog in the making!

#4 – Every Peso Counts

Tim’s Every Peso Counts blog is a refreshing view on personal finance.  I really like the positive energy of Tim and his hope of a bright future for the Philippines.  His very interesting articles on money and personal finance is a great read and continues to inspire a lot of people to become better financially.

#5 – Investing Pinoy

I just recently came across Bryan Uy’s Investing Pinoy blog.  His blog talks about stock trading and investing in the Philippines.  The tips from this blog has been another great resource for beginning investors just like me.

#6 – Ridiculously Extraordinary

While Ridiculously Extraordinary speaks about lifestyle design (a term popularized by Tim Ferriss’ 4-Hour Work Week book),  the site also offers a lot of very interesting ideas on how you can make money AND living an extraordinary life at the same time.

#7 – Personal Finance By The Book

I came across Joe Plemon’s Personal Finance By The Book blog earlier this year when one of his articles was featured as Top 5 Pick in the Summer Edition of Rich Money Habits Blog Carnival.  Joe continues to bring out practical advice about money which are especially useful in building a better money mindset.

#8 – Jonhapiness

While Jonha’s blog is an interesting mix of topics such as money tips, warnings on scams, and blogging, she is slowly bringing a lot of positive influence to more and more people.  I won’t be surprised if she ends up one of the most influential bloggers in the Philippines soon.

Update as of August 26, 2010: Top #9, #10 & #11 emerging influential blogs in 2010

#9 – KennyV’s Investments

Kenny V’s investments blog proves that it’s never too early to begin learning to invest your own money.  At a young age of 21 years old, Kenny shares his investment ideas ranging from tips on opening credit card or bank accounts, insurance and his favorite company stocks.

#10 – Fat Girl No More

While Ria’s blog Fat Girl No More is not exactly a personal finance blog, she tackles one of the most important aspect of wealth – your health.  Fat Girl No More is one girl’s refreshing view of appreciating your own curves at the same time aiming to be better physically and emotionally so you can perform to the best of your abilities.

#11 – Honorable Nominations

The response of our readers and their nominations for the last 2 slots were simply amazing.  I would have loved to put all the nominated blogs in the top 10 list but I could only take 2 and was quite honestly severely restricted by my own criteria of considering only personal finance (related) blogs.  Nevertheless, when I checked out the following nominated blogs, I was stunned on how good and influential they are.  As my way of saying THANK YOU for your nomination, I am listing your blogs as #11 – Honorable Nominations.

There you have it folks! I never thought coming up with a top 10 list could be this hard.  It took me hours to scan through my favorite blogs and I could only come up with 8.  I need your help to fill up the 2 remaining slots.

While I read a lot of blogs, I had a difficult time finding a personal finance blog that was launched only last year.  Most of the blogs I read have been around for quite some time. Maybe, I’ll do another Top 10 post for those blogs in the future.  Watch out for that!

Dear readers, nominations for the 2 remaining slots in my Top 10 list is now open. If you have a (favorite) blog related to money or investing that was launched only last year, feel free to nominate it through the comment section below. Please include a brief description on why you think your (favorite) blog deserves to be in the top 10 list.

Lastly, I’d like to take this opportunity to thank Janette Toral for organizing such a worthwhile project.  Special thanks also to the following sponsors who made this project possible:

Events and Corporate Video, Budget hotel in Makati, Pinoy Party Food, Copyediting Services, PR Agency Philippines, Budget Travel Philippines, Send Gifts to the Philippines, Black Friday Deals, Roomrent – units for rent, Search Profile Index, and Corporate Events Organizer.

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Business Credit Card Investing Life Updates Money Mindset Mutual Fund Personal Finance Stocks

Rich Money Habits Carnival – Frugality and Success

Welcome to the second edition of the Rich Money Habits Carnival!

In this edition we will highlight the top 5 frugality and success articles out of the tons of money stories we’ve received during the month of February.  May these articles inspire you to live a wealthy and successful life.  Enjoy!

Rich Money Habits Top 5 Picks

 

  • Steve C presents Why Being Frugal Can Only Take You So Far On Your Path To Wealth posted at MyWifeQuitHerJob.com. RMH – A great read on the age-old dilemma of going too cheap.  Steve argues that raising your income by working on your business gives back way bigger returns than the measly saved income you gain from cutting back  expenses.
  • Faizal Nisar presents Secret of Success: YOU | Be Truly Happy posted at Be Truly Happy, saying, “Creating money begins in the mind. Once you learn that success is a mindset, you can become rich in any industry.” RMH – Inspiring article on taking responsibility for your own success.  The question at the end says it all, “will you take responsibility for your success, or blame others for your failure.”
  • KCLau presents Focus: Achieving Goals posted at KCLau’s Money Tips, saying, “A guest post by Sayeed, a senior manager in a large MNC in Penang on how he achieved his financial goals.” RMH – Interesting article on why we should keep on dreaming.  Sayeed offers 5 tips on how to focus on your dream and achieve it.  My personal favorite – “get 15 minutes a day to read a book, best before going to bed. Develop the habit from there…”
  • FIRE Getters presents A Simple Budget That Works? posted at FIRE Finance. RMH – Very helpful tips on how to make your budget “actually” work.  The article aptly describes the problem of budgeting as being “too complex and rigid” while real life demands “flexibility and simplicity.”
  • Wenchypoo presents Ending Bureaucracy posted at Wisdom From Wenchypoo’s Mental Wastebasket. RMH – Great article explaining what bureaucracy means.  While reading the article, I couldn’t help but compare it to how big companies “bureaucracies” disguised these things as “processes”…in reality, all these “processes” do is delay you from doing what you really need to do in the first place.

Other interesting articles in this edition

Money Stories

Business

Personal Finance

Investing

Other

That concludes this edition. Submit your blog article to the next edition of Rich Money Habits Carnival using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

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Business Life Lessons Money Mindset Personal Finance

Building Rich Money Habits 101: My personal finance story

I have always thought there’s only one formula in making money.  That is work hard and at the end of each month, you get your paycheck.  Growing up in a family of farmers, I have seen what working hard really means.  I’ve experienced waking up early in the morning, go to the farm, plant or harvest rice until the sun sets in.  When you go home after a long day of working, the aching muscles says it all.  It is HARD work.  I’ve learned from my parents that if you want to have some money, you have to work  for it.  Often times, I’d go along with my mom to harvest tobacco leaves from a nearby town, and afterwards, she’d pay me for how much I was able to harvest.  That’s always been my training in terms of making money.  That was my first money habit – work to earn.

When I was in College, I wanted very much to help my parents pay for my education.  I was fortunate to have been granted a full scholarship, so that took care of the tuition.  Even then, making money from a far away province, and spending it in the most expensive city in the country is no easy task.  It is an uphill battle similar to walking up to a going down escalator.  So in my own little way, I also tried to make money by applying as student assistant to one of the university’s projects.  It doesn’t pay much since it is a government project but enough to pay some of my daily expenses and grow my confidence.

After graduating, I immediately started work as a mainframe programmer for a multinational IT company.  The offer I got then was around 16,000 pesos which was BIG money then for someone who’s fresh out of college and don’t have much working experience.  I worked very hard and was fortunate enough to be promoted almost every year.

As my paycheck increased, my appetite for consumption also increased.  I bought a refrigerator, a washing machine, gas stove, shoes, etc, ALL at the same time, EVEN when I didn’t have the money to pay for it.  I just used my new credit card!  That’s when my debt started to pile up.  The “easy” monthly payments never lived up to its promise.  No monthly payment was easy, especially when you only have your paycheck to rely on.  As my debt seemingly increased every month, I also had to worry about paying my monthly house rental, buying groceries, eating out with friends, and more.  There were times I was so out of money I even had to do “cash advance” on my credit card.  As some of you might know, you get to pay a hefty “fee” for doing a cash advance.  This is on top of the amount of money you actually “advanced”.  My already big debt, ballooned even more!  I was so ashamed of having to do cash advance, I promised right there and then, I had to pay for my debt no matter what.  It was like a having compound interest working against me.  I had to learn how money works.  I had to figure it out no matter what.  I had no choice.

While pondering my huge debt, I tried to look for ways to earn more money.  I tried doing some programming projects for friends.  I even entered the world of network marketing, tried selling wellness products and failed miserably.  I remember that my only “downlines” (a term indicating those you’ve recruited into the business) was my mother, my aunt, and a few of my friends.  It was a learning experience.  The thing that struck me most, was that my “need” for money, was being transferred to my “clients”, without me being conscious of it.  It was hard “selling” something you don’t 100% believe in and it’s even harder when your motivation is “making” more money without necessarily helping other people.  I think this mindset barrier is one of the reasons why I was not able to make it work.  Everyday, I had to battle with myself.  Am I here to really help other people?  Or is it just because of the money?

One time, while me and my friends were hanging out at a bookstore, I saw the book Rich Dad, Poor Dad by Robert Kiyosaki.  I heard my friend say it’s a great book, so I bought it, took it home and devoured the stories and financial lessons in the book.   The book opened my eyes to the world of money I never knew existed before.  That’s when I realized that the rich have different sets of money habits from the poor and the middle class.  For the first time, it finally made sense why I can’t seem to be making a dent on my credit card debt; why I can’t seem to sell anything at all.  Because I had the wrong money habits.  I had to learn rich money habits to achieve financial freedom.

After that, it got me excited to learn more about money. First, I signed-up for our company’s savings plan.  I started really small. At first, only about 2% of my paycheck is automatically deducted and kept under my savings account.  I don’t even get to hold the money.  After a month, I increased it to 5%, then to 10%. After a year of saving, I was able to set aside 20% of my paycheck without necessarily scrimping myself too much.  That was rich money habit #1 – pay yourself first.

With the savings, I had, I was able to pay my debt slowly buy surely.  More than that, it gave me confidence to know that I can do it, with the proper discipline and rich money habit.  When the opportunity came for me to be assigned to the US for a 6-month stint in my company, I was able to save even more and pay-off the rest of my credit card debt. That was rich money habit #2 – get out of bad debt as soon as possible!

I also started to take serious notice of the numerous calls I got from insurance agents offering life insurance.  Before, I would always make up numerous excuses just to avoid talking to them.  But now, I wanted to know more how I can use the different insurance products to protect myself and my family.  I also started reading more on business, money, investing and personal finance.  After a few years, I managed to save up for an emergency fund.  That’s rich money habit #3 – Get some protection!

I’m still a long way to go from financial freedom.  That is my goal.  I am in the process of learning how to build passive and semi-passive income, and I am loving every minute of it.  In this website, I will share whatever I learned so that you too can build your own rich money habits and ensure your financial success and freedom!

Categories
Business Investing Personal Finance Stocks Truly Rich Club

Bo Sanchez's Truly Rich Financial Coaching Program (Day 2)

Since my wife and I were late during the first day of the Truly Rich Financial Coaching Program, we wanted to make the most of the seminar by being early on the second day. Before 8AM, we were already on our way to Valle Verde Country Club. Since it was a Saturday, there was not much traffic jam and we arrived a little around 8:15AM. Thinking that we were early, my wife and I sat on one of the benches outside the room. I saw the room where we had the seminar yesterday and noticed that some people were already preparing the place. I thought to myself, maybe in no time they’d be done preparing the place and we will be sitting comfortably inside the room. After a few minutes, brother Bo arrived with his usual winning smile. He saw us and invited us to go inside. Thinking that he was going to where the waiters were preparing, we hesitated a bit. Only when he entered the OTHER room beside it did we realize that we were looking at the wrong room. When we followed Bo and entered the room, there were already many people inside, some of them having a great time drinking their morning coffee. I couldn’t keep from laughing at myself for thinking and being proud that we were the early birds for the day. 🙂

Basic Foundation of Financial Planning

DSC_0617 The first speaker was Noel Arandilla, from International Marketing Group (IMG).  He talked about the basic foundation of financial planning.  He shared some tips to having better finances like increasing your cash flow, building long term asset allocation, how to compute the right amount of insurance that you need, and more.

I learned that there are only two things you can use to generate cash flow: time and money.  We all have 24 hours in a day.  But how you use your time determines whether you become rich or poor.  For most people, the only time available to become rich is after work or during weekends, that is – spare time.  It is very important to utilize the spare time that you have in money-making generating activities and not waste it on watching TV, sleeping, gossiping, and more.

Noel also shared that a person normally starts out in life with very little or no money but with lots of responsibilities.  For example, he has to help his parents with household chores, he may need to send his younger bother or sister to school, or earn a living to help with the family’s finances .  After a few years of getting his paycheck, the typical person would earn a little bit more each year while his responsibility gradually  decreases.  Once he reaches retirement age, all of his kids have probably graduated by then, hence he would have minimal responsibility.  At this stage, he’s supposed to have money working for him to fully enjoy the remaining years of his life.  That is the purpose of financial planning.

Be the Bank!

May I tell you a little secret?  Do you know how the bank earns money?  Let me illustrate the answer by using an example.  After spending 2 years as an OFW, you have a little extra cash that you don’t really expect to use for the next 30 years.  Let’s say you have  100,000 pesos in total.  Now, being a saver, you deposited the whole 100,000 pesos into a time-deposit account at 5% annual interest for 30 years.  Right after you left the bank, a business man came in, asked the banker for a loan of 100,000 pesos payable in 30 years at 15% annual interest.  The banker than says “OK”, took the 100,000 pesos from your time-deposit and gave it to the business man.  After 30 years, the bank’s 100,000 pesos loaned to the businessman has already earned around 6.4 million pesos including interest, while your 100,000 pesos invested in time-deposit earned only about 400,000 pesos.  When you claim your time-deposit earnings, the bank give’s you the 400,000 pesos, then keeps the remaining 6 million as profit.  I’d love to be bank! 🙂

How you’re losing money from your savings account

In the Philippines, most people still invest by saving their money into banks over a long period of time.  The bad news is this. Banks are offering very minimal interest rate on savings and time deposits.   With less than 1% annual interest rate on your savings account, what future does your money hold?  Counting average inflation of 7% per year, you are actually losing money at the rate of -6%. This is because of inflation.  Inflation is the effect of steadily appreciating prices of goods.  For example, your 100 pesos can buy 5 loaves of bread 20 years ago.  But today, the same 100 pesos could NOT even buy 1 loaf of bread.  The same thing is happening, when people say “if only I bought that piece of land 20 years ago, today, I would already be a millionaire!”

Start early.  Invest your money for the long term.

tarlacroad I love the way Noel spoke about ordinary experiences and making them as great examples of interesting financial decisions.  For example, you get your 13th and 14th month bonus today worth around 40,000 pesos. The question is, would you save and invest it on a mutual fund at 10% average interest rate?  Or would you buy another NEW mobile phone? For some, the answer is simple – buy a mobile phone for “pogi” (handsome) points. For others, they would hesitate quite a bit but eventually give in, saying “I’ll just invest my next year’s 13th and 14th month bonus. For now, I’ll buy myself a gift.  I deserve it.  My brand new cellphone, here I come!” For those a little bit financially savvy, they might invest it through mutual funds, or stocks, potentially earning even better average annual returns around 15 – 20%.  For most people, it is hard to invest because earning an interest over a long period of time is NOT tangible RIGHT NOW and you need time to make it work. The delusion of instant gratification is the enemy of long-term investing.

Money is flowing

The second speaker is also from IMG.  He shared his personal observation about how rich people in the Philippines spend their money.  He noticed that Henry Sy, Lucio Tan and other billionaire tycoons move their money around.  In a way, they are actually just buying from themselves.  For example, Henry Sy who owns the very popular SM department stores, is renting mall space for his department stores from SM properties, which is a different company but still owned by the same family.  When SM properties build new malls or residential buildings and need money, who do they ask money from?  Instead of borrowing from other banks, they borrow from their own bank – BDO, which, is owned by the same man, Henry Sy.  The same is true with Lucio Tan.  When his Philippine Airlines and several tobacco companies need money to finance its projects and investments, from which bank does it borrow money?  Of course, through Allied Bank or Philippine National Bank, which Lucio Tan owns a stake.  So you see, money is just flowing around, being controlled by the same rich people who owns most businesses, selling high quality goods and providing world-class services for our countrymen.  Wouldn’t it be nice to be able to do the same thing?  Wouldn’t it be nice to buy from yourself and save on costs?  You might even want to give yourself a hefty discount as part of your loyalty program. Who wouldn’t want to be a loyal customer to one’s self? 🙂

Mutual funds

The idea of mutual funds, I learned, is making investing available to ordinary citizens.  Each person invests a small amount, as little as 5000 pesos.  The money from all the investors are then pooled together and invested into money generating assets like bonds, stocks or both.  The money is managed by professional fund managers.  The goal of the fund manager is to make money for the small investors.  Whether you invested big money or not, you earn the same profit percentage as that of the group.

This is particularly beneficial for ordinary citizens who don’t have much time and money to participate actively in managing the investment and content to just leave their money to professional fund managers.

One way to minimize risk, is to use an investing method called peso cost averaging.  It is an investing technique based on the assumption that since you’re unable to time the market, you just try to average out the risk by investing same amount of money every month or every quarter  to take advantage of the times when the price of the stock/net asset value per share (for mutual funds) becomes very low.  Even though the price is fluctuating, or is going roller coaster, the risk is minimized as the same amount of money can buy more shares when the stock price is low.  When the price is up you can either take away your profit/earnings or leave it there to earn compound interest.  It is advisable to maintain a long term outlook on your investments like a 10 or 20 year time frame in this scenario.  If you need the money within 1 year or 3 years, it is best to leave it at the bank where it is safe and liquid.

There are also different types of mutual funds: 1) bonds & securities, 2) stocks & equities, and 3) combined.  Mutual funds which invest in company or government bonds & securities are stable but offer limited earning potential.  These funds are especially designed for those that are risk-averse and those that are already retiring and don’t want to spend their time analyzing funds for themselves.  The mutual funds which invest in stocks have high growth potential but also entails higher risk especially during times of booms and recessions.  This is advantageous for those still young and can tolerate the swings in the market that even if they lose money, they can still go back up.   The upside is that if they make money, they earnings is also big.

Passion, Hardwork & “Angel” Investors in Business

The third speaker was a successful businessman.  His name is Ronnie Siyasoyco.  He has built several successful businesses to which he attributes most of his success today. He shared personal stories on his many ups and downs and a little bit of luck dealing with business failures, learning from them and enjoying his successes.

Ronnie got started selling “uling” (charcoal) one summer day.  He and his brothers experienced being laughed at by their friends because of their dirty clothes which was battered from their having to lift several sacks of charcoal each day.  The painful thing, according to Ronnie, was seeing their friends make fun of them, and them not being able to enjoy the seemingly “easy” lives that their friends had.   Many times,  he went home crying, asking himself, why they are very poor.  But with a powerful & positive attitude, he worked hard, ignored the joke from their friends, even hired some of them to do the charcoal delivery themselves and earn extra money. That summer, he and his brothers were able to sell 3 truck loads of charcoal.  Not an easy feat for 3 young high school boys.

In those early days, he learned the value of hard and honest work.  Growing up in a family of entrepreneurs, breakfast and dinner time was shared and business ideas were freely discussed among the family members.  His mother would always ask him if there’s anything he needs to do for the day.  When he starts answering “nothing”, he would be scolded and the words “there is ALWAYS something to do” would then be ingrained in his head.  If you have nothing to do, you find something to do.

Very early in his life, he had asked his parents why they were so poor.  His mom would say that they are NOT poor.  They eat 3 times a day.  They go to school.  They have the necessities of life.  His dad would add that the only legacy that their parents can pass on to their children is good education.  So it was in their hands to make the most out of it.  If they squander the opportunity, their lose will be their own doing, not the fault of their parents.

Ronnie also shared his personal story on how he lost 80 million pesos through a cancelled deal and several outside forces devaluating the peso and skyrocketing the value of his loans.  For one month, he was not able to sleep very well.  That went on and on, until he prayed and surrendered his problems all to God and a miracle happened.  Since he was not doing anything one day, his friend invited him to drive him to meet up someone.  He was  just listening there watching his friend speak to this very rich businessman, when the businessman suddenly asked him, “you, gentleman, what are you doing here?” To which he replied that he was accompanying his friend.  He asked again, “what do you do? what business are you in?” and so he answered again and provided a background on his business.  And so on until the businessman asked how his business was doing and how he can be of help.  At the end of the conversation the businessman offered to help by giving him a cheque, enough to help him pay back his loans and get his business moving again.  He referred to this businessman as an “angel investor”.  The moral of the story he says, is saying “yes” to your friends when they ask you to drive them. You never know, an angel might be waiting on the other side for you. 🙂

What I appreciated about Ronnie is how he passionately shared about his ups and downs.  His story is truly inspiring.

Internet Marketing

The last speaker of the day was Bo Sanchez’s internet marketing mentor, Jomar Hilario.  Jomar talks fast and is very entertaining.  He shared his experiences selling concert tickets through online internet marketing.  He also mentioned his initial attempts to enter the world of marketing through selling “forever living” products, carrying a big box with him, seemingly always in “high” state, shouting positive affirmations to himself.

After reading from Robert Kiyosaki’s book that one needs to visit at least 100 properties to buy just 1 house, he visited houses one after another and took a lot of pictures of those houses using his old film camera.  At the end of the day, he was exhausted.

At some point, he also mentioned the story on how he spent 80,000 pesos to attend a wealth seminar in Singapore, bought the training materials, only to find out that the ideas on the training materials are the same ideas he had already done before when he promoted concert tickets in 30 days to fill a whole coliseum, all by himself.

Lastly, Jomar extended an invitation to his upcoming Internet Marketing Seminar and his Online Marketing Workshop Club.  You may learn more about his seminars by visiting  www.jomarhilario.com.

Action starts now!

It was long day.  With lots of financial information to digest, I had to prevent myself from suffering “information overload”.  Overall, the Truly Rich Financial Coaching Program was a very good seminar, showcasing the different financial vehicles and opportunities on how to invest and make money.  From here, the only thing to do is take action!

Watch out for the next articles in the coming weeks and months, as I try to share my progress and experience taking action on some of these financial lessons.

Do you like to attend Bo’s Truly Rich financial seminars but you are based outside the Philippines? Here’s your chance!

Join the Truly Rich Club!
Join the Truly Rich Club

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Bonds Business Investing Money Mindset Personal Finance Stocks Truly Rich Club

Bo Sanchez's Truly Rich Financial Coaching Program (Day 1)

Last Friday and Saturday, my wife and I attended Bo Sanchez’s Truly Rich Financial Coaching Program.  The event is a two-day seminar showcasing financial lessons and tips from Bo Sanchez and his mentors on business, real-estate, stocks, mutual funds and internet marketing. In this 2-part series, I will try to share what I’ve personally learned from the seminar. This is part 1 which includes the insights I’ve learned during the first day of the coaching program.

The ARRIVAL

“The journey of a thousand miles begins with a single step.” – Confucius

We arrived at Valle Verde Country Club around 2pm Friday.  We were actually late because we came all the way from Makati and we still had to drop by our house in Mandaluyong, have lunch and take a taxi going to the venue.

When we arrived, the seminar already started.  We were just in time for the first talk of the day.  Thanks to the small note outside the room and a little luck, we managed to find which room the seminar was being held.   The funny thing was, we actually arrived at around the same time as the first speaker.  When the speaker entered the door, we took a quick peek inside and saw that the organizers and the other participants were already inside the room.  We registered right away, took our seats, settled down and prepared ourselves for a very exciting and interesting financial coaching seminar.

Online Stocks Investing

The first speaker was Juan ‘Juanis’ Barredo, the VP of CitisecOnline, which is an online stock brokerage firm in the Philippines.  He has 18 years of experience in the stock market.  What struck me about Juanis is the way he spoke very fluent English.  I thought – “this guy can speak!”.  The way he captures the right words to explain the most intricate subject of stock investing is excellent.

One of the first things I learned from his talk is that less than 1% of the Philippine population invests in the stock market.  Which is really very small compared to other countries like US, Hong Kong, and even for our neighboring countries such as Indonesia.  In the US, even cab drivers invest in the stock market.

The main idea of stock investing is – you buy “shares” of a company to become a part-owner.  That means you are actually investing on a business.  Just like in business, one of the strategies used to gain a profit is to buy “low”, then sell “high”.  The tricky thing about stocks is how to know if the company’s shares are being sold “low” or “high”.  Is it based on the “market price”?  Or is it based on the “actual value” computed from analysis of the company’s earnings and performance?  Or is it both?

I realized that investing in the stock market is a lot like buying a pair of jeans on sale.  How do you know if it’s on sale?  First, you need to know, how much is it truly worth?  That is, how much is it really selling for when it’s not on sale?  For jeans, usually it’s around 1,000 to 2,000 pesos.  Of course, you can buy cheaper jeans from Divisoria, or more high-end jeans from branded stores.  So if they say it’s 70% off, they’re selling the 1000 peso worth jeans for only 300 pesos.  Would you buy?  If it fits and you like it, why not?!  The same is true with stocks.  When a share of the company is worth 1000 pesos and they are selling it for 300 pesos only, would you buy?  If you like the company, and based on your analysis it is really worth 1000 pesos, why not?  Among other things, it should also fit you.  Is the company something you want to be involved in?  Do you and those people running the company share the same core values?  If you have all the money in the world, would you build the same business?

During the seminar, I asked Juanis which companies he personally invests in. Many people in the room laughed. I’m guessing because it’s a familiar territory almost similar to asking your classmate what the correct answer to a question on your exam is.  The main reason I asked is because I wanted to know if he is practicing what he is saying.  To me, more than the information that he shares, it’s the integrity he exudes that really matters.  When he shared what he personally invests in without hesitation, I knew he was someone who really walks his talk.

Business is about relationships

The second speaker was actually the owner of CitisecOnline. His name is Edward Lee.  Actually, I already saw him in one of Bo Sanchez’s videos for Truly Rich Club.  When I spoke to Bo during one of the coffer breaks, I said it was kind of surreal to be able to actually see some of the guys in person, where before we only saw them from the DVDs that we received as a member of Truly Rich Club.

Edward Lee has a very long track record of business success and he shared with us some of the key things he learned as an entrepreneur.  What struck me was that here was a man who’s very successful and wealthy.  But when he speaks, you can see the integrity and passion in his voice.  He’s really excited in sharing the lessons that he learned, occasionally sharing  some personal stories from which he derived most of his business success.

One very important thing I learned from him is that – business is all about relationships.  It’s building relationships with your people, your customers, and your suppliers.  As Bo mentioned later, “you buy from your friend”.  Upon reflection, I realized that “yes, I am like everyone else, I really buy from my friends.”  When I want to know something, I ask my friends.  When there’s something I want to buy, I try to find out who from my friends are into that business.

I realized we are just one piece of a big puzzle.  We do our share.  When we buy from our friends, what we’re really doing is sharing what we have to the world.  It’s the same thing when we sell.  Because we address a problem that our friends are facing, we’re making their life a little bit easier.

Business is about Integrity

The second thing I learned from Edward is that it’s very important to be very trustworthy and keep your word.  Even if it losses you money.  Even if it costs an arm or a leg.  This is a core value that rings very close to my heart.   I like to deal with those I trust.  I realized that when I don’t really believe in something, I hesitate to share it to my friends.  I am a silent man, but when I share, I want to make sure it is something my friends will benefit.  More than the money, it’s because they are my friends.  Friends look out for each other.  We want the best for them. Isn’t it great to give and be able to share something valuable with your friends?

Real Estate

The third speaker was Larry Gamboa, the author of Think Rich Pinoy.  He shared about the idea of franchising in the world of real estate.  Perhaps because it was something new and still in its infancy, I had a hard time following where the talk was going.  I guess because it is something that was still in the works, it was also hard for him to explain.  What I appreciated about him is that he realizes what people are going through.   He recommends learning while also earning at the same time to shorten the gap between dreaming and execution.

Internet Marketing part 1

Bo also shared some tips on internet marketing.  He mentioned that Kerygmafamily.com is making money through donations, all through the power of the internet and marketing. The website is actually making lots of money from those donations which all goes to the many programs that Bo is organizing to help those in need like the Anawim – a place for abandoned elderly, or the charity that aims to help pregnant women.  This is a very good example of showing that the ultimate purpose of money is to help and love other people.

This is only day 1 but there were already so many things I’ve learned. Watch out for the part 2 of this blog post where I’ll share personal insights I’ve learned from day 2 of the Truly Rich Financial Coaching Program.

Do you like to attend Bo’s Truly Rich financial seminars but you are based outside the Philippines? Here’s your chance!

Join the Truly Rich Club!
Join the Truly Rich Club