THE PROBLEM WITH EASY MONEY

Have you heard of the question, "Kikita ba ako dyan kahit wala akong gawin?" You'll hear this from people who wants it easy.

If an investment sounds too good to be true, then maybe, you shouldn't put your money in there.

I'm sure you've heard of the latest pyramid scam that just happened in Mindanao. (P12 billion lost, 15,000 families affected)

The promise of a big and quick return (what the banks or reputable firms can't offer) with no work required on your part is a sure sign of risk or danger.

Your money can only make money for you...

1. When you use it to "create value" for a customer. 

Try to use your money to buy buns, spam, pepper, eggs and cheese. You have a Spam Black Pepper Sandwich that sells around P150 in Starbucks.

Remember, your money won't grow on its own. It needs to do something for a customer. 

2. When you trade it with something more valuable. (buy low, sell higher)

Say you found a good deal. You were able to purchase a car for only P200,000. After two months, you were able to resell it for P250,000. You've just made P25,000 per month for two months. (return: 10% per month)

3. When you use it to buy something that appreciates in value. 

Let's say about two years ago, you purchased a P2 million commercial property in a decent location. You just found out today that SM is about to put a mall across your property.

Effect : Appreciation. Now people find your property more valuable. Your P2M is now worth P3M or more if ever you decide to sell. 

4. When someone reputable (with a proven track record) puts your money to work or use it to grow their "profitable" business. 

Note: Don't invest your money in a company that's trying to save an ailing business!

5. When you buy a property that collects rent every month.

(property: anything that people are willing to pay rent for – real estate, heavy tools or machinery, portalets, tables & chairs, etc)

Don't simply go for easy money. Laziness often leads to shortcuts.  

To grow your money, either put it to work yourself, (faster than usual) or ask a reputable company to do it for you. The latter may take longer, but your money will still grow over time. 

Wealth from get-rich-quick schemes quickly disappears; wealth from hard work grows over time. Proverbs 13:11

Read More...

SHOULD I PURSUE MY PASSION?

I rarely talk about "passion." Not that I am not passionate.

I am passionate about several things. My passion has led me to achieve major aspirations I never thought I could do. But with the same passion or my immature zealousness, I've also failed miserably in a few things I've done before. (a painful lesson)

What I've learned in life is that 'passion' isn't enough. 

You can't just live on passion. 

You also need wisdom. 

Wisdom is the ability to make the right decision at a given time, context or situation. So, how do you get wisdom?

1. Pray and read the Bible.

The bible says "The fear of the LORD is the beginning of wisdom…" (Psalm 111:10) To know what to do, pray and ask Someone who knows what's best for you. He holds the bigger picture. 

2. Ask an adviser. 

Asking for advice isn't a sign of weakness. It won't make you look dumb. In fact, with many advisers, you have a better chance of succeeding in any endeavor. Don't be too shy to ask. 

3. Don't wear yourself out chasing "MORE" money. Instead, show restraint and put your time on living out your "purpose." Do this, and most likely, the money or provision will follow. 

Self-centered pursuits or a get-rich-quick aspiration won't do you any good. The key is to be passionate about the right things. 

4. Learn from your mistakes. 

If you fail, get up again, then apply what you've learned. Don't let a failed business, project or a failed attempt stop you. Don't get stuck living in a "state of failure." You won't learn if you won't move on!

5. Win small victories. 

Even small battles can teach you big lessons. Be faithful even with the little. Small victories will lead to bigger opportunities. 

6. Remain humble. 

Pride often leads to a loss of respect. (see Pr 11:2) Be willing to listen. Consider the point of view of others. Put other people first and be of service to them. 

Read More...

4 REASONS WHY YOU HATE MONDAYS

1. You are in the wrong job. 

2. You are in the right job (or type of work) with the wrong people.

3. You are in the right job with the right people, but somehow, possess a negative attitude towards work. (Ouch!)

4. You don't have any work to do and it's making you miserable!

Read More...

RICH DAD, BANKRUPTCY, AND A FEW LESSONS LEARNED

Rich Dad Poor Dad best-selling author Robert Kiyosaki filed for Bankruptcy for one of his companies after losing a lawsuit. (By the way, he owns more than ten companies)

And as someone (me) in the real estate business, I thought I'd share my thoughts about this. 

I used to be a Kiyosaki fan in the late 90s. I've read a lot of his books. The ideas presented in his book was 'fresh and revolutionary' at that time. 

"Financial Literacy" quickly became a buzz word those days. Every "business opportunity" presentation can't go without the "cash-flow quadrant" powerpoint!

I kept buying the Rich Dad books. (along with other business books) Until one day, while reading, I realized that he was just saying the same thing over and over again in all of his books. So I took what I could apply in my business and moved on. (people tend to idolize him)

Some of the ideas worked for me. Some didn't. 

As an entrepreneur and a real estate investor, here are a few personal lessons I'd like to share. 

Disclaimer: These are my personal realizations – it may or may not work for you.

1. Invest in the "right property" or real estate. 

Not all properties are good investments. You need to do your homework. 

I own a small real estate company that operates 33 rental units today. Owning these assets has worked for me. I guess collecting money from 'rent' has been a good idea – even before Robert Kiyosaki was born. 

2. Avoid Irresponsible Borrowing. 

You can use fire to cook, to heat or to light. But too much fire can also burn down the house. Irresponsible borrowing is playing with fire. 

Borrowing money for an unproven business is a bad idea. Should you borrow money for your business, make sure it's to expand what's already working for you. Don't speculate if you can't afford it! – a painful lesson I needed to learn first hand. 

The best way to start is to start small. Then find a way to scale up. 

Patience and consistency will take you a lot further. 

3. Like Mr. Kiyosaki, I'm also an author. The royalties/income from book sales here may not be as much, but it's opening new doors for me. So, I guess that's a good idea. 

A well-written book is also something that you can leave behind to your children. 

4. Rich dad says, "your house isn't an asset, but a liability." Well, you have to live somewhere. He can call it whatever he wants, but for me, i'll call it "my home." 

I guess what he simply meant was: Be wise when purchasing a home. Do you really need a big house with a big mortgage? Or would you put your money in a "luxurious car" when you can buy a more practical one and invest the rest somewhere more profitable?

The bible offers the best advice "Finish your outdoor work and get your fields ready; after that, build your house." – Proverbs 24:27

5. A "good name" is still more valuable than riches. 

This is not the first time Mr. Robert Kiyosaki was sued. 

The sad part is that he has been sued by someone close to him (Sharon Lechter) and by someone who has helped him in a big way. (The Learning Annex)

The Takeaway: Be diligent. Be financially literate. Be successful. But don't neglect the most important – your reputation and your character. 

The best gift you can give to your children is 'a good reputation' that they can carry with them. 

The best gift you can give to yourself is knowing in your heart that you tried your best to do what's right – even when no one else was looking, counting or expecting.

* * *

Get P50 off when you buy a PRODUCTIVE PINOY book online. Free delivery nationwide via LBC. To order, simply click HERE.

Read More...

HOW TO BECOME MONEY WISE

You've been promoted. Your business picked-up. Your investments are performing better. 

And now, you're earning a lot more money. It keeps pouring in. 

So, you start buying this and upgrading that. Now, you try restaurants that you used to call as "overrated." You're now swipping your plastic more often – as if you were in Time Zone. 

"So, this is how it feels to succeed", you tell yourself. You've worked hard. Why not enjoy it?

The problem arises when that 'moment' extends and becomes more than a moment. Without intending it, you've expanded your regular spending and have altered your lifestyle. Now, even with a higher paycheck, you begin to wonder why money is still tight? 

Seven Ways to Become Money Wise 

1. Learn from your past money mistakes. 

Many years ago, I got into a financial mess. I over-expanded a business that I thought was bulletproof. I borrowed too much money from the bank. I knew it was risky, but still I disregarded advice. I was young. I thought I knew it all! I lacked financial wisdom then. 

I thank the LORD for giving me the chance to start all over. This time I made sure to start right. I didn't want to be in the same situation again. 

A proof that you've learned is that you don't repeat the same mistake twice. You know what they say, "Experience is a good teacher only if you will learn from it." 

2. Learn from the MISTAKES of others.

You don't need to pay for a "tuition fee" (money lost from a venture) if you can learn from the mistakes of others. 

I'm sure you've heard of stories of people who lost their their hard earned money by placing it on "investments" they don't understand. Easy returns doesn't necessarily mean guaranteed returns.

3. Learn from the SUCCESS of others.

Surround yourself with people whom you can learn from. 

Don't just ask questions like, "What's a good business to start?" or "What's a good investment?" 

Instead, find out how successful people think and make decisions about money. Look at the way they do their work. Observe how they relate with others. Find out what makes them tick. 

The valuable lessons in life are mostly caught rather than taught.

4. Read anything about business or personal finance. 

We live in a new era with a new dilemma. The problem today is not the lack of information, but the "overload" of information. There's too much info that can distract us from our goals. 

Choose to read articles, blogs or books that will not only entertain you, but will also help you become more productive. In my book, Productive Pinoy, I've written a lot of ways on how you can improve your work and finances. (Available at National Bookstore, PowerBooks and FullyBooked)

5. Read the Bible.

The most valuable book I refer to is the Bible. It offers practical wisdom on how to become a better steward of money. Did you know that Jesus spoke of money and possessions more than the topic of heaven and hell combined? 


6. Attend Finance and Personal Development Seminars. 

As Personal Finance Coach Randell Tiongson would always say, "Invest in yourself." Read books, subscribe to blogs, and attend  learning events or seminars. [See Start Learning]

You'll get a return on your investment sooner than you think.


7. Apply what you've learned. 

You'll look smart when you know a lot about money – but it's smarter to put what you know into practice. 

To be money wise, remember to...

Keep learning. Keep trying. And keep what you earn!

–

YENG REMULLA is an entrepreneur of 15 years, the author of two books –Productive Pinoy and Start Something.

On August 3, Saturday, he will be facilitating a talk or workshop on Entrepreneurship at the Malayan Plaza Hotel Ortigas. To see the details or to register, simply click HERE and fill-out the form.  

Read More...

WHERE TO PUT YOUR MONEY

Last Thursday was a great day for me. My meetings were productive. I met a few interesting people. And my business was doing well. You know those days when everything seems to be working for you? I went to bed that night sleeping like a baby. 

When I got up the next day, the first news I read was about a bank that went bankrupt. When I read the bank's name, I realized that it's one of the banks where I put extra money. That woke me up instantly! The money wasn't that much. (but enough for us to go on a family vacation)

So I called my assistant, and told him to go to the bank to find out what's happening. True enough, the bank was closed and was under receivership. (Good thing, the account is insured, so I'll probably get my money – hopefully, soon.)

That made me realize what the bible is really saying...

“Do not store up for yourselves treasures on earth, where moths and vermin destroy, and where thieves break in and steal. But store up for yourselves treasures in heaven,where moths and vermin do not destroy, and where thieves do not break in and steal..." – Mathew 6:19-20  

Realization: The safest place to store up treasures is not here on earth. Put your money (time, talent, resources) on things that will matter in the long haul. (eternity) The rewards and returns are far better – crowns that won't just fade away.

* * *

Get P50 off when you buy a PRODUCTIVE PINOY book online. Free delivery nationwide via LBC. To order, simply click HERE.

Read More...

EVERY ATTEMPT IS A STEP CLOSER

OMGPop is an online game maker that's about to run out of money and close its business. They've made 34 games – none of which was profitable enough to keep them going.

Until eight weeks ago – when they launched an online game called "Draw Something." It's like Pictionary for the iPhone.

People began downloading the game. They shared and played it with friends. Thousands of drawings were posted on Facebook and Tumbler. After 35 million downloads, it certainly became a huge hit.

Zynga (makers of Farmville & other hits) noticed, and became highly interested of the company. After a short negotiation, Zynga bought OMGPop for 180 Million.

Before the acquisition, Charles Forman, the founder, had $1,700 left in his bank. The next day, he made more than 22 million from the deal – a fortune he didn't expect.

It would have made sense to quit after 10, 20 or 30 attempts, but they continued to create games anyway.

The Takeaway – Consistently do your best. Every attempt is a step closer to a "huge hit." Persist. One day, it will payoff.

Read More...

SELL WITHOUT SELLING

Recently, my partners and I started a new training firm. (We help organizations improve their productivity, bring out their creativity and increase their sales)

Every Friday, we grab some donuts and coffee and discuss ways on how we can run our business effectively. 

One of our recent topics was the implementation of our 'Sales calls'.

We've agreed on one main thing – We need to sell 'without really selling'.

Here's what we came up with:

1. Focus on helping people rather than just closing the sale.

You don't want an aggressive or pushy salesman. Somehow, we need to show you (our clients) that we are here to help you – and that we're in it for the long-haul. We know you're smart! – You'll know if someone is just after your business.

This is challenging, but it's the right thing to do for our customers. 

2. Respect and value the time of our prospective clients.

How we present our services will show how much we care. A long presentation isn't always better. Our sales call will need to be short, sweet and enriching. We need to design it really well. 

[Tip : a superior 1-hour presentation will take at least 30 hours to design]

3. Be generous.

The "old marketing" was about taking from people. But we believe that being generous will pay better – It has always been better to give than to receive. 

That's why instead of selling to you right now, we've decided to give first. It may be a free book, a complimentary seat in a seminar, or a preview session – we believe that if we remain generous – sooner or later – it will pay off. (in direct or indirect ways)

In today's economy, organizations who are willing to give freely – will thrive.

4. We need to differentiate our promise. 

At the end of the conversation, the question remains... 

"Why hire us?" 

That's what we intend to answer! 

Read More...

GET YOUR FEET WET

Inside of you is a longing to do something great. 

Whether it's raising your children well, building a profitable business or making art, you can't deny your eagerness to make things even better.

How do you start? 

Let go of the excuses. Do something uncomfortable. Expect mistakes. Allow to get your feet wet. 

[Photo Credit]

Read More...

"STEADY KA LANG"

  

 

  

We live in an accelerated world. Everything is moving fast.

Today, even the pizza gets to your home faster than the police. To get an answer, it only takes a second for Google to answer. With a few clicks, you can plan your travel anywhere around the world, no need to fall-in line to consult a travel agency.

What we used to do for hours or days, we do it now almost instantly.

That's why we are not used to waiting anymore. To the point that we think waiting is hard, even if it's just sitting it through.

It's also the reason why sometimes, when we don't get what we want instantly, we move-on. We move on, not to better alternatives, but to wrong choices. 

Waiting is good for us. Many times it's God's way of strengthening us. It's His way of preparing us for greater work. 

Pretty much like a how a butterfly waits before it can fly. A small caterpillar comes out from an egg. (first instar) His one and only job – to eat continuously.

Even if he is in a hurry, the caterpillar needs to crawl, slowly.  He knows he'll be a butterfly someday, yet no amount of positive thinking can make him fly. Not yet.

Because his skin can't grow with him, he then grows a new skin underneath, and then he lets go of his old skin. (molting) Like a boring routine, he repeats this molting over and over again – five times.

He matures slowly. Stage by stage. Little by little. Can you imagine him being impatient?

For the last time, he molts again, but this time differently. The new skin underneath forms the outer shell of the chrysalis. (Pupa - Similar to a Cocoon)

At this time, his mission is clear –  to wait.

He can't go anywhere. He can't move forward. But nonetheless, even if no activity is seen on the outside, transformation is happening inside. His body transforms. His wings are fully formed. 

After 10 to 14 days of waiting, the butterfly is ready to see the world, differently.

It may sound ironic, but sometimes, the 'best move' for us is to WAIT. You may feel that nothing is happening, but there is a great possibility that transformation is happening inside you.

No matter what happens, never, ever, make the wrong choice – only because you can't wait.

The next time a friend tells you, "Steady ka lang", consider his advice. It might be good for you.

Photo Credits

  

Read More...

HOW TO SPEND INSTANT MONEY

Just the other day, I landed a big sale. Big enough to pay for two months worth of our family expenses. Substantial enough for a single guy to live for a year.

What's the first thing that do you do when you receive a large chunk of money?

I'll be honest. Receiving that money automatically gave me the desire to ... SPEND.
Photo Credit

One of the first thing we did was to buy a new iPod. My wife and I have been contemplating to get one. It was because our 'Jurassic' Sony Handycam finally went to extinction last December. We need the video cam features of the new iPod for our upcoming Bohol Trip this March.

Ever since my kids were small, we've taken videos of our trips.


It has been a tradition for us to edit the best parts and turn it into home movies.

So a small part of the money went into that purchase.

Why are we not 'guilty' of this purchase? It's because even before we received the money, we already made a plan on how we will handle it.

 

When we were younger, we experienced how fast it was to deplete hundreds of thousands. If you don't know what you're doing that money is quick to squander.

So what's the best thing to do with Instant Money? (in no particular order)

(1) Blow Money. 
Set aside more or less 5% of your money to blow away. This is not conventional wisdom. In fact, it's not really for everybody.

But if this is 'extra money' or money that you really don't need to pay for your bills, 5% is better than spending the whole amount for something.

If you've worked hard for this money and you still have more than enough to keep, give yourself a break. You can reward yourself. Buy that one gadget that you were dreaming of. Shop for new clothes. Eat out in the fancy restaurant you've been craving for.

Celebrate. The last thing that you want to feel during this favorable event is deprivation. 

Spend as long as it's within the blow money.

(2) Save.
This shouldn't be the last thing on the list. In fact, it should be the first one. You have two options on how to approach this...

Equation A • Instant Money - Savings = Expenses
Equation B • Instant Money - Expenses = Savings

Equation A is more effective than Equation B. Once you start spending, the possibility to save becomes slimmer. So it's better to put it aside first.

(3) Invest.
Set aside money that will allow you to make more money. Allow it to work for you.

In this case, I used a large chunk of the money to pay for the amortization of the condominium we purchased as an investment. This will allow the property to have an early 'turn-over'. Enabling us to lease out the apartment and collect rent immediately. The plan is to let the property pay for itself later on.

Use the money for your investments or to fund your new 'money-making' venture.

(4) Pay Debt. 
This is self-explanatory. I'm sure you have an idea on how to go about this. 

(5) Give.
Whatever we sow, we reap. Giving is a way to acknowledge that whatever we have today is a favor received from God. Blessings are from him.

Read More...