Category Archives: Personal Finance

Ano Ano ang Paraan Para Yumaman?

Maraming kaparaanan kung paano ang yumaman, ngunit ang higit na mas mahalaga ay malaman kung ano ba talaga ang ibig sabihin ng pagyaman. Para sa akin ang kayaman at di nasusukat sa pananalapi lamang, kasama dito ay ang malusog na pangangatawan at mayroong galak sa iyong puso.

Sa IMG tinuturuan namin ang mga tao, kung paano maging disiplinado sa kanyang pananalapi upang sa gayon ay malaman kung paano ang maging Tunay na Mayaman or Truly Rich.

Dapat maunawaan ng tao na pagiging kuntento ay isa sa mga katangian ng taong mayaman. Ang tunay na mayayaman ay tumutulong din sa kapwa.

How IMG (International Marketing Group) Paid my Credit Card

It is not literal that IMG went to my Credit Card Company and paid off my debt. So here is my story.

I became a member of IMG (International Marketing Group) last year just to have an additional diversified investment, by that time I did not know that I could also earn from sharing their vision and teaching about financial matters. By that time I do not know that I need to pay off first my debt before getting into investment.

After a year I have closed about 14 clients and from those clients I was able to get 20% or 30% from their 1st year payment. I never forced them to be with IMG but what I told them is the importance of investing. Now most of them are invested in Kaiser, Mutual Funds and Stock Market.

Moving them spenders to savers is really great. Some of them have already earned from the commission that they get from their own investment like mutual funds and Term Life Insurance.

Every time I have my commissions they transfer the money through my VISA card, and since I am abroad, I access the VISA card through online. I then make payments transfer to my Citibank Credit Card. Through this method I was able to clear up my debt in credit card.

It is what I call, increase cash flow. By increasing the cash flow it will help meet goals and vision in life.

Once I saw this quotation:

It is better to increase cash flow than to cut our dreams.

Now, what I am going to do is to transfer my IMG earning to my Mutual Funds, so that my extra income from IMG could help me in the future. It can be my retirement fund.

I am for long term investment therefore I will put extra income into Equity Fund from Phil Equity. As an IMG broker, I could also earn from commission through my own mutual fund investment. I will get a percentage from the broker’s fee that was supposed to be received by the broker.

Isn’t it great? God bless you and hope you could achieve the same. As a start you may want to learn from our daily newsletters that gives advice about financial literacy for FREE. Just enter your details on the side of this blog.

Isa Ka Bang OFW? Handa Ka Na Ba sa Iyong Pagreretiro?

Nagiimpok ka ba para sa iyo pagreretiro? Ano sa tingin mo ang iyong kalalagyan sa iyong pagtanda?

Sa tagal ko na sa Saudi Arabia (12 years na), marami na akong nakitang mga Pilipino na umuuwi dahil sa silay matanda na. Ang tanong napaghandaan ba nila ang kanilang pagtanda? (Ang karamihan hindi)  Ang masakit pa dito todo todo ang padala nila sa kanilang mga mahal sa buhay at sila naman ay naghihirap dito sa Saudi Arabia. Minsan nga ay natitirahan na lang sila ng 50 Riyals pang gastos sa buong isang buwan. Kumakain ng Kaboos (tinapay) at tubig. Sa kadahilanang wala ng pambili sapagkat kailangan ng pamilya sa Pilipinas. Minsan ang kinakain na lang ay itlog at Kaboos pa rin.

Hanggang kailan ang mga Pilipinog OFW sa ibang bansa maghihirap para sa kanila pamilya sa Pilipinas? Nawa ay maunawan ng mga pamilya sa PIlipinas na di madaling humanap ng pananalapi sa Saudi Arabia.

Kaya napapanahon na tayong mga OFW ay mag-isip isip na sa ating kinabukasan. Tinuturaan tayo ng Bibliya na magimpok para sa ating kinabukas kagaya ng langgam.

Proverbs 30:25

The ants are a people not strong, yet they prepare their meat in the summer;

Mahalagang mapaghandaan natin ang ating retirement age. Mahalagang sa pagtanda natin ay hindi na tayo aasa pa sa ating mga anak para sa ating pambili ng ating mga pangangailangan. Mahalagang di na natin sila hihingan sapagkat sa panahoing iyon ay maaring mayroon na rin silang kani kanilang mga pamilya.

Mas maganda siguro pagsapit natin ng ika 60 taon sa a tin kaarawan tayo ang magbigay sa atin mga apo na magagandang laruan sapagkat meron tayong sapat na kakayahan sa ating agtanda.

Magagawa lang natin ito kung ating pagaaralan ang ating dapat na maging investment para sa ating pagtanda. (Pagreretiro)

Nararapat lang na huwag naman nating ipadala lahat ang ating kinikita at tayo’y magtabi para sa ating investment. Ang pamilya rin natin ang makikinabang kung ilalagay mo sa tama ang mga investment mo.

Maaring makatulong ang IMG sa iyo, sapagkat ang IMG ay nagtuturo ng mga pamamaraan ng pagiinvest. Mayroong ding mga pamamaraan para paghandaan mo ang gastusin sa iyong health pag tanda  at marami pang iba.

Build a Long Term Savings

We are now in the 5th step on our Financial Security Series.

Before you can proceed to any Long Term Investment, you need to pay off your debt. Paying your debt is also like investment since you will stop on paying interest. I suggest that if you have credit card debt, first pay your credit card debt before going to investment. Credit card interest is for sure higher than any moderate investment because most credit charge up to 18% to 25% yearly or worst 2.5% compounded monthly. So know the priorities first and know your wants and needs.

What is Compounded Interest?

From Wikipedia: Compound interest arises when interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. This addition of interest to the principal is called compounding ( in other words Tubo na tinubuan pa – Good for investment – bad for Credit)

What is Rule of 72

Dividing the number 72 by the interest rate of your savings or investments will give the estimated number of years it will take for your money to double.

Example : 72 / 8 = 9 it means that your money will double after 9 years with 8% interest per year.

What is Inflation?

Did you know that money in the Bank slowly “evaporates” under the heat of INFLATION?

Your money shrinks over time, just like how water dries up under the heat of the sun.

Example a Ligo Sardines is costing Php 11.25 on year 2011 but now it cost Php 16.00 , the change of the price of sardines is called inflation.

You may see the inflation record at

Time has always something to do with our investment, the longer the investment the safer the investment. But of course Risk is always there, but based on statistics, investments placed for a longer period always gives good returns and always beats the inflation.

A solid Financial Foundation is needed in order to be financially secured. In future post, we will give you details on some investment vehicles that could beat the inflation.

Ensure Proper Protection, Introducing Financial X Curve

We believe that, before we could start investing or experience financial freedom, we need to ensure our protection. This is the 4th level of Financial Security. Let me explain about the X Curve which you could also see in our Team Logo. This is still part of Financial Security Series

X Curve + IMG Philippines

Image Courtesy of IMG Philippines

What Financial X Curve?

Financial X curve gives you an idea about protection and security of a person. This concept theorizes person’s responsibilities generally decreases and wealth generally increases over time as shown in the picture.

Let me discuss about the Responsibility, the younger we are the higher the responsibility. As an example while we are young we spend a lot for our own family or our parents, we spend for our children’s necessities such as school, food, clothing, education, health care and other primary needs, which only means that they are all depending to us while we are young. As we go older, mortgage is being completed, children finished their education, you have your own car or even you have your own house and therefore older people’s responsibility is less during the old days. That is what we called Law Of decreasing responsibility.

As we increase our responsibility the need of being insured is higher compared when you get older. The resources that you need for your responsibilities should be equal to the protection that you have. In short, you need to be secured while you are young, so that whatever happens to you, your family or those love ones will left behind will not have problem about the responsibilities that you left.

For further reading you may check Wikipedia -

The next part of the X curve is the Law of Building wealth, it means that while we are young our wealth is little and sometimes nothing. It is the time where we accumulate wealth so that when we get old we have investment where our money can work for us through it’s interest. Most of the income while we are young is active income while income when we become old should be passive income.

Active income means when you stop working you will not have any money or the cash flow will stop.  Passive income means a continuous stream of income were money will be working for you, even you stop working or giving effort in making money, money will still flow. This could only be done through proper investment.

But of course before you invest you need to make sure your protection is properly dealt with. Your life Insurance and Long Term Health Insurance is a must to do in order to make a good foundation for your investment.

In the Law of Building Wealth, when you got old, interest of your investment will be used to satisfy your needs for your health care, food, recreation and other necessities.

The X Curves tells us that as we go old, we need to be more secure and our responsibility should be less.

Part of 6 Steps to Financial Security Series

Create Emergency Fund, 3rd Step to Financial Security

6 Steps to Financial Security Series

We are now in the third step to Financial Security, Just want to remind you that first step is increase in cash flow, then debt management, and then today let me discuss the third one which is having an emergency fund.

IMG KSA (1)_Page_38

What is an emergency fund? Emergency fund is equivalent to at least 3 to 6 months of your expenses for bachelor/single and we advise 6 to 12 months for family.

Emergency fund is the fund that you could use in case there are emergency in your home. As an example, sickness, an accident, parent’s need or sibling’s needs. There are times where we cannot really avoid on what is happening in our surroundings.

A good example which is common to Filipinos if if your parents ask for your support, because he was diagnose of having some health problem, would you not give him or her your support? There are times that even we don’t have money we are being forced to borrow money with interest just to give our love ones their needs. What if you have an emergency fund, for sure it will be easy for you to help.

Another scenario, is the surprise retrenchment in your company, suddenly your boss give you a notice that they are implementing a cost cutting measure and you are one of those employee that will receive his last pay check. So what will you do if you have mortgage to pay, a children to feed, and more. Emergency fund could be a big help to you so that you will not resort to a debt with interest.

Emergency Fund is not easy to make, but if you follow the earlier suggestion that we have told you that you have to save 20% of your salary. Within 2 years you will be able to save your emergency fund.

Emergency fund is normally being placed in a low risk and liquid investment. That means you can pull out the money at any moment. Low Risk investment like Special Deposit Account (SDA), Money Market, Time Deposit or more. It is not advisable to put your emergency fund, because you will never know when you will need you r money. Because there is a possibility that you will need it in time when market is down. So it is dangerous to put in stock market.

Our next blog post will discuss about Ensure Proper Protection.

This is still part of the Financial Security Series

Debt Management, 2nd Step to Financial Security

First of all thank you for your continued effort in reading our blog in order to be financially literate: The 2nd in the list among the 6 Financial security Steps is Debt Management.

It is clear that you cannot invest if your are buried in debt.. But did you know that paying your debt is the start of your investment. Because the moment you pay your Debt, interest stop so as if, you have already save those interest that you are going to give to loan institution.

You should know that there are two types of DEBT, first is Good Debt and the next is the Bad Debt.

So What is Good Debt? Good Debt is a Debt that could lead to increase in cash flow, as an example you made a loan in bank to buy a car that could be used for your business or taxi. You made a 5% interest in the bank, but you are sure that your gain will be more than 5% from your business. It will automatically increase your cash flow. So that is Good Debt.

So What about Bad Debt?

Bad Debt is something you buy in debt, but only because you want those things. When I say “want” it only means something that you can live without. As a sample a DSLR camera, I categorize it as want because you can live without camera. Not unless you are a photographer and you need for your business so it could become a “need”.

As a piece of advise if you are in debt through Credit Card, and you decide to be financially free, make payment in your credit card debt monthly but always more than the minimum. And stop using your credit card. Remove it from your wallet and put it in your cabinet.

Credit Card is a temptation whenever it is positioned in your wallet.

Credit card is good if you know how to handle it. But if you don’t, better cut it out and pay your debt.

If you want to get out from Credit Card Debt, You always need to pay more than the minimum and stop using your credit card.

Increase Cash Flow, 1st Step to Financial Security

Today I am going to discuss about the first step to financial Security

6 steps to Financial Security by IMG Philippines

6 steps to Financial Security by IMG Philippines

As shown in the picture above, the 6 steps to Financial Security are as follows:

  1. Increase Cash Flows
  2. Manage Debt
  3. Create Emergency Fund
  4. Ensure proper protection
  5. Build Long Term Savings
  6. Preserve Your State

Today let me discuss you the Increase Cash Flow Step:

According to Robert Kiyosaki, there are 4 ways to produce income it is through

E – Employee
Wherein you become an Employee and get you salary on a regular basis.

S – Self Employed
This are the people who use their talents and make their own job. As a sample they make Grocery store and they are also the worker of the grocery stores.

B – Business Owner
This are people who owns a grocery store and hire a Manager but still they are directly involve in the decision making of the company or the Grocery store.

I – Investors
They hire managers, and they get a share of the company,. They normally don’t deal on a day to day works in the company. If the company earns they earn, and if the company loose they will also loose.

Knowing the different ways to earn an income where do you see yourself in the quadrant?

I am now a combination of E,B and I but someday, I want to be on B & I side.

I am also increasing my cash flow through blogging and some other passive online income. IMG also could be a source of passive income if it is done in a proper way.

Our next post will discuss about the Debt Management.

Should you have any question about IMG and how it can help you grow your finance and meet your financials goals, please let us know by contacting me through my contact details as shown at the sidebar or by filling up our newsletter  at the sidebar.

How You Should Manage Your Monthly Salary?

After blogging about the Money handling Mistake :
  1. Overspending / Not Living Within One’s Means
  2. Credit Mismanagement
  3. Overly conservative in Investing Money
  4. Lack of Financial Education

Now let me discuss to you on how you should manage your money specially your monthly salary.

Are you the type of person who only live with Paycheck to paycheck? What I mean is before you received your salary you already know where to pay it and it end up of having a negative balance?

If you are those kind of person using this formula:

Savings = Salary – Expenses

Then you are the type of person who cannot control your investment. What if your expenses is almost equal or even higher than your salary so it will end up “0” savings, and normally this is what most of Filipinos think.

Since I told you that we advocate Financial Literacy, You need to change you mind setting to  the following formula.

Expenses = Salary – Investment.

Since I also advocate giving and I also believed that tithing is our obligation for the Lord my formula is

Expenses = Salary – Tithes – Investment 

the mentioned formula says that you always need to prioritize your investment and tithes and live with the rest of the equation.

Normally Salary is 100% , Investment is 20%, Tithes is 10% and therefore, Your expenses should only be equal to 70% of your salary.

IMG KSA (1)_Page_26

 Image Courtesy of IMG Philippines – Truly Rich Maker Group

Should you want to know more about IMG and how the company could help you meet your needs, you may fill-up the form at the side, and we will contact you as soon as possible.

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Conservative Money Investing & Financial Illetracy

This is Part 3 of 3 of the Money Mistakes Among Pinoy Series

Part 1 | Part 2 | Part 3

I hope you are learning from our blog post. I have already discuss 2 money mistakes among pinoy which as follows

1.) Overspending / Not Living Within One’s Means – Part 1 of 3
2.) Credit Mismanagement – Part 2 of 3

Today I will discuss about Conservative Money Investing and Financial Illiteracy

What is conservative money investing, It is actually saving your hard earned money through banks. Let me explain this point, since I know that most Pinoy invest in banks thinking that their money is safe.

Investing in banks will give you an earning of 2% to 2.5% on yearly basis, and this earnings is taxable with 20% upon release by the bank.

Did you know that our country has an inflation rate of 3% to 5% based on history.

Inflation means the decrease of money value.

Check the picture below to understand about inflation.

Did you know that there are lots of Investing Vehicle that could give you a higher Interest Rate than the Inflation rate of Philippines.

As the saying goes, any Investment earnings lower than inflation rate is a BAD INVESTMENT.

Another Money Mistakes among Pinoy’s is the Lack of Financial Literacy.

I believe this problem is the most common problem among Pinoys.

Citibank Survey June 2011:

Filipinos’ Financial IQ = 48.9 /100

Filipino’s average savings in reserve = 9 weeks

Learning about Financial Literacy is a must to learn subject if you don’t want to retire POOR.

I also believe that if you FAIL to Plan, You PLAN to Fail.

If you want to know more.. you can email me in advance And I can discuss how can I help you increase your financial literacy and help you to plan your future.