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

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CAN YOU 'ATTRACT' MONEY?

I don't think you can attract "money." 

You can only attract PEOPLE who'd like to work with you, do business with you, or buy from you because ...

1. You're good at what you do. 

2. You're easy or fun to work with. 

3. You're brand is interesting.

Now, if you want to become (financially) rich, follow the above three and practice good financial management along with it.

Don't ever think that you can 'magnetize' money. Money is earned by delivering something of value – or is a gift out of someone else's generosity. 

Many times, getting "rich" has nothing to do with money, but a lot to do about servanthood, discipline and good stewardship.

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

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7 STEPS TO A SIMPLE BUSINESS PLAN

"What business should I put up?" That's usually the question. 

Richard Branson, serial entrepreneur and founder of Virgin Group (400 companies worldwide) says "Business opportunities are like buses, there's always another one coming."

That's true. But for starters, you don't need to be like Mr. Branson. Yes, there are many opportunities around you, but not all will be good or suitable for you. To be effective, you'll need to filter or figure out which one to pursue.

1. Find a need or a problem around you. (customers) Look around you. There are problems waiting to be solved.

And someone out there is responsible for that problem. He is looking for answers. (There are many others like him)

That could be you providing a service, a product or a solution to that group of people. 

2. Provide a Solution. (your service or product) 

What exactly can you do for them that could make their lives or work easier?

Old products or services were designed to solve old problems. The "old way" will go outdated. Sooner or later, it won't work for anyone anymore. 

Come up with a new way, a new approach, or a new business model. To be relevant, design your products or services to solve the problems of today and tomorrow. Don't merely ask your customers what they want, but anticipate and figure out what will work better for them. 

As Steve Jobs would say, "A lot of times, people don't know what they want until you show it to them."

3. What makes your Solution different? (marketing & branding)

In three sentences, what makes your service or product uniquely valuable? Why will they pick you and not the provider next door? How will you differentiate your offer?

Hint: Going cheaper than the competitor isn't always better. There's a possibility for you to end up just competing with price – In the end, nobody wins.

Providing "better customer service" is already every company's promise. Customers are already expecting you to give that to them whether you promise or not.

What can you possibly do to stand out?

4. Do the Math. (finance)

I know. You don't like math! However, you still need to know your numbers. 

Can you deliver your promise at the price they are wiling to pay for? Will you still make money? 

How much money do you need to run your business for the first six months?

How much "salary" do you need to pay yourself to make this venture work?

Is there a way that you can utilize new technologies to make your start-up cost-efficient?

There are more money-related questions to answer...

5. Is the business in line with what you do well? (competence)

Competence is the ability to do something successfully and efficiently. Will the quality of your work speak for itself?

6. Pray. (faith)

This isn't counter-productive. It's the most productive thing to do! Pray and ask God "Is this your will for me? Should I go into this business?" 

If the answer is no, then don't. It is only when you find peace that you should proceed. 

7. Do your homework. (diligence) 

Be the first to wake up and the last to go to sleep. Research! 

Did you know that Mark Zuckerberg started Facebook without a real business plan? The only time they figured out how to make money (monetization) was after getting millions of users. (as of 2012, Mark's personal wealth was estimated to be more that $19.1 billion) 

Dream Big. Start small. Above all, start today. Then update your business plan along the way.

Learn how to Start-up! YENG REMULLA will be one of the speakers at the "JUMPSTART YOUR SUCCESS" Workshop at the FORT BGC this Saturday, November 30. For details or to register, visit http://tinyurl.com/jumpstartevent

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4 INTERESTING QUOTES

Earlier this afternoon, as I was sipping my coffee, I came across these quotes from an issue of Reader's Digest.

One came from Warren Buffet, the richest man in the planet. (a good friend of Bill Gates) His name is synonymous to the word "investing". He is recognized as the greatest investor in the world. 

So here are four quotes I found interesting...



It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you'll do things differently. 

- WARREN BUFFET





Great Leaders are almost always great simplifiers.

- GEN. COLIN POWELL






I suppose leadership at one time meant muscles, but today it means getting along with people.

- MOHANDAS K. GANDHI







The person who knows "how" will always have a job. The person who knows "why" will always be his boss.

- DIANE RAVITCH

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







  

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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.  

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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.

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

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THE SECRET TO SUCCESS

Walk into a bookstore aisle, you'll see hundreds of books with a title that reads something like "The Secret to Success."

It comes in different forms, sizes, colors – written by different authors from diverse industries. Every book attempts to unfold 'the secret' to building wealth. From attracting good 'vibes' to 'no money down' deals, you won't know which book to pick up first. You'll end up more confused.

There are many techniques, know-how or life skills one can learn. There are many stories that can inspire, motivate or move us toward our dreams.

But the question remains, "What is success to us?"

No doubt, more money in the bank, isn't. You've seen rich men die broke and empty. Even power, fame and fortune is a boring story you don't want to watch in the cinema nowadays.

Instead, most of us picture success as 'the good life.' Yes, the families you see in the insurance brochures, corned beef TV commercials and housing billboards. To some, it's about owning their own time and being able to do their own thing.

We've gone a step smarter. Now, we are not just after the money, but we are looking for freedom, healthy relationships, security, significance and meaning.

All of which we have the tendency to try to attain on our own.

No matter how smart, sincere or persevering we are, the day when "nothing seems to be working" comes. We try harder, but that seems to make things worst.

Don't quit.

Yes, a life of abundance is waiting for you, but you need to look in the right direction. You may need to take a u-turn. Go back to where you're supposed to be.

You may have forgotten that you were never alone. He has always been with you. He has witnessed your challenges. He felt your heartaches. He understands your situation.

There's no secret to success. It's been there for you to know all along. Stop looking in the wrong places.

"He who pursues righteousness (close & right relationship with God) and love, finds life, prosperity, and honor."  – Proverbs 21:21

Take a fresh look. Renew your pursuit.

Love God. Love your neighbors. Move within His favor.

Pursue Him.

Life, prosperity and honor will follow.

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Selling Cheaper is Not a Strategy

As a consumer, I like it when prices are low. It gives me more spending power. It allows me to get more bang for my buck.

But as an entrepreneur, I don't like to sell low. Instead, I choose to create value in the products or services that we offer. This allows us to sell at a more substantial profit. It's healthier for the business.

Don't think your customers will stick with you solely because "mas mura".

If you think a low-price strategy can give you an edge, think again. The problem with winning by selling low is that it's temporal. Customers will choose to buy from you today (while you are the lowest) but when a competitor decides to lower their prices...

Bam! You can see your customers wave goodbye.

Don't forget that the lower the price, the lesser profit margins. The more you need to push your sales people to move. Pricing lower might not improve the bottom line. In fact, it can worsen the situation.

Instead of doing that, find a way to satisfy your clients by adding value. This should increase your business. Find an unmet need, then serve it. Don't let your competition notice what you're doing. Do it under the radar.

What are key improvements that your customers are asking for? Do it. Then capitalize on this and make it your competitive advantage.

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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.

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TRY MORE

“Try and try until you succeed” is popular motto that Pinoys overly say. Growing up, I've heard it from an unemployed relative, a one-week piano teacher and from a classmate who love girls but gets busted all the time. 

However, sometimes the real problem is not with trying, but with 'expecting'.

We expect to hit the target the first time. 


We expect to shoot the ball in the hoop the first time we throw it. 


We expect to get a perfect score after we unwillingly give in to sing in the KTV for the first time along with friends. ("Ayoko! ayoko kumanta!" were your exact words)  


We expect to close the sale the first time we make a pitch.


We expect to succeed the first time we try. 


In archery, the archers use their first shot not to hit the target but to test and measure the strength and direction of the wind. This enables them to zero-in on the target with the remaining shots. 


That's how they are able to hit the bull’s eye. They learn from their not–so–obvious mistakes.


Isn't that great advice for all of us?


I say don’t count on beginner’s luck. Success in business, career or in any other pursuits seldom come on the first try.


Walt Disney went bankrupt several times before he went big-time.


It was a thousand attempt, before the bulb actually lit. Maybe Thomas Edison didn't expect to get it right the first hundred attempts?


Before David knocked Goliath down, he already killed a bear and a lion while protecting his father’s sheep. A special training in which God allowed him to go thru before hitting the big bull’s eye “Goliath”. 


Give yourself a break. Nobody expects you to succeed the first time anyway! (Unless if you’re a pilot or a surgeon) 


Failing will not make you a “failure”.  In fact, the permission to fail will liberate you.   


With persistence and a resilient attitude, it's just a matter of time before you hit that bull’s eye.

 

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