Spender, Saver or Investor: Which one are you?

Spender, Saver or Investor
Which one are you?

There were three siblings who inherited a sum of  ₱300,000 from the sale of a small parcel of land, which their deceased parents left to them. They agreed to divide the money, and all take equal share then left.

The first one is Jojo, the eldest of the three. Upon receiving the money, he imagined a lot of things he can buy and do with it. He immediately went to the nearest department store and buy all the things he wanted: new clothes, new shoes, new pants, new cellphone, new computer and splurge himself on that very day. The next day, he woke up with all the things he bought the previous day and found out that all the money he got was spent to the last penny. 

The second child is Julius, quite a bit of a saver. He is afraid to take risk and always on the safe side. Since he don’t know what to do yet with the money, he immediately went to the bank the other day. He has a friend working in the bank and he approached him. To maximize the interest of the money, he wanted to avail the time deposit which will give his money the 5% interest rate. And so he deposited all his money in the bank.

The third child is Don, a business minded person and quite a risk taker. From the start the he held the money on his palm, he already knew what he needed to do. He wanted to start up his own business and invest the rest  to maximize the profit and give him the best return. He approached successful business minded friends for advise and how they started up and friends who also invested their money, whats the best investment and why, his friends shared their experiences and best practices but also warned him of the possible risk as well. As they said, Everything is a Risk nowadays. Even doing nothing is a risk, if you follow the successful and practice the right attitude you can get twice or even more from your start up capital. If not, you can always put your money in the bank and hope 5% is enough for your future. Don understood and knew the risk and agreed on it.

Past forward, it’s been 30 years since the three siblings receive their ₱100,000 each from the sale of the small parcel of land they inherited from their parents.

Jojo, as expected turned out to be the poorest among them. He spent all the money he got 30 years ago and now living in a day time job with a very small income. Sometimes not enough to support his family of two.

Julius, the second child and a saver decided to go to the bank and check his money. He finally have something in mind to buy and he needed the money for it. His friend is still working on that bank and he approached him. He told him he wanted to withdraw all his money and close the account. His friend then search their computer system and see how much his money is after 30 years of long term deposit in the bank. To his surprise  he was informed by his friend that the ₱100,000 that he deposited 30 years ago was already  ₱432,000. However, there was a 20% tax on this kind of transaction. So from ₱432,000  he now have ₱370,000 after 30 years. He is not rich, still working his day job but have enough money for his expenses and able to support his family.

The third sibling Don, who started up his own business and invested his money is doing very well. During that time, their ups and downs in the market with some years even have negative growth. But due to his consistent investing on his personal growth and learning not only on different business,  overall,  his money grew yearly with average rate of 15%. Now, his total money is  ₱6.6 million. Don was so happy to know that he has millions of cash from the ₱100,000 he initially invested 30 years ago.

Spender, Saver and Investor. Which one are you now? Are you saving wisely for the future or spending all that you have for today?

>> 3 Years ago, Like most employees i was also financially struggling. Over worked, stressed and with no savings under my belt until i found a Money making Machine called GFI. Not only was i able to resigned from my work because of GFI, it gave me an opportunity to have more quality time with my family and secure my kids future as well.

If your interested to know more about GFI, just visit my Facebook page, add me and send me a PM and let me share to you "possibly" the greatest opportunity you'll ever do

https://www.facebook.com/dondy.gonzales

Cheers!!

"KUROT PRINCIPLE"

"KUROT PRINCIPLE"

Ano ‘yung Kurot Principle? Ay, ang ganda nitong Kurot Principle na ito. To better understand this, I will tell you a story of a person na balak bumili ng cellphone worth P1,000.

Nagkataong mayroon siyang P100,000 na savings. Puwede ba siyang bumili ng cellphone? Puwede, kasi yung P1,000, kurot lang ‘yon sa kanyang savings.

May pangalawang taong balak bumili ng cellphone. Ang bibilhin niya ay worth P1,000 din. Mayroon siyang savings sa bangko na P1,000. Bumili siya ng cellphone. Anong tawag dun? Dakot na ‘yun! Dinakot lahat ang pera niya!

May pangatlong tao, balak bumili ng cellphone, pero walang savings. P1,000 lang naman ‘yung bibilhin niya. Bumili siya. Anong tawag ‘dun? Utang na ‘yun!

Ang tanong: ano’ng prinsipyo ang ginagamit mo sa buhay mo? Kurot, dakot, o utang?

Magtataka pa ba tayo kung bakit tayo naghihirap o baon sa utang? Ang gagaling nating dumakot! Ang gagaling nating umutang! Gusto mong yumaman? Starting today, matutong kumurot. Kapag may bibilhin, dapat kinukurot lang! Nagkakaintindihan ba tayo? Kapag ginawa mo ito, pangako, yayaman ka.

Pag-aralan nating muli ang mga pinakamayayaman sa Pilipinas, ang Chinoy. Again, bakit sila mayayaman? Ang gagaling nilang… kumurot! Tayo ang gagaling nating… dumakot! Sasampolan kita…

Pinoy vs. Chinoy Businessman 

May dalawang negosyanteng nagsimula ng kanilang negosyo, isang Pinoy at isang Chinoy. Ang capital nila pareho ay P100,000.

Sa unang buwan, si Pinoy, kumita ng P10,000. Ano ang iniisip bilhin? Cellphone. Si Chinoy, kumita rin ng P10,000. Ano ang gagawin niya? Idadagdag niya sa puhunan.

So magkano na ngayon ang puhunan ni Chinoy? P110,000! Si Pinoy, P100,000 pa rin, pero may bago siyang cellphone. Ang ganda!

Ituloy natin. After a few months, maganda ang takbo ng negosyo. Si Pinoy kumita ng P50,000. Ang Pilipinong may P50,000, ano ang balak bilhin? Bibili siya ng home theater, DVD, at LCD TV! Si Chinoy, kumita rin ng P50,000. Anong gagawin niya? Idadagdag uli sa puhunan niya. Magkano na ang puhunan niya? P160,000 na!

A few months later pa, ang Pinoy kumita ng P150,000! Ang Pilipinong mayroong P150,000, ano ang balak bilhin? Second-hand na kotse o pang-downpayment sa bagong kotse. Ang Chinoy, may P150,000. Ano’ng gagawin niya? Idadagdag sa puhunan! Magkano na ang puhunan niya? P310,000!

Buwan-buwan, si Pinoy kumikita. Dagdag siya ng dagdag ng gamit. Magkano ang puhunan niya? P100,000! Si Chinoy, buwan-buwan kumikita. Ano ang ginagawa niya? Dagdag ng dagdag sa puhunan niya. One day, Chinoy was able to save P1 million! So ginawa niya, he approached one supplier and said, “Supplier, kung bibili ako sa‘yo ng worth P1 million, bibigyan mo ba ako ng discount?” Hulaan mo kung ano ang sasabihin ng supplier. “Of course, ang dami mong bibilhin, kaya bibigyan kita ng additional 5% discount!”

Ngunit naisip ni Chinoy, “Hindi naman yata maganda na sa akin lahat ang 5%. Ang gagawin ko, bibigyan ko ang customers ko ng 3% discount at sa akin na lang ‘yung 2%.” Ibig sabihin, bababa ang presyo ng kanyang mga ibinebentang produkto.

It just so happened na magkatabi ang tindahan ni Chinoy at ni Pinoy. Pareho sila ng mga produktong ibinebenta. Given the situation, kanino kayo bibili? Kay Chinoy, because it’s cheaper. Ano ang mangyayari sa negosyo ni Pinoy? Malulugi na. Kasi mas mahal ang kaniyang produkto. Ano ang gagawin niya? Ibebenta niya ‘yung kotseng nabili niya ng P150,000. Sino ang bibili? Siyempre, ang maraming pera, si Chinoy. Tatawaran pa ni Chinoy ang kotse ng P80,000. Dahil gipit na si Pinoy, kahit palugi ay ibebenta na rin niya. Si Chinoy ngayon ay nagkaroon ng kotse na murang-mura lang!

After a few months, mauubos din ang P80,000 ni Pinoy. Ano ang susunod na gagawin ni Pinoy? Ang home entertainment niya ay ibebenta na rin. Magkano? P20,000 na lang. Sino ang bibili? Si Chinoy. Darating ang araw na pati ang cellphone ni Pinoy ay ibebenta na niya. Magkano niya ibebenta? P2,000 na lang! Isang araw, magsasara na ang negosyo ni Pinoy. Ano ang gagawin niya? Malamang, magtatrabaho na lang siya kay Chinoy. Ito ang kuwento ng bansang Pilipinas!

Naalala mo pa ba noong araw, mas mayayaman ang mga Pinoy kaysa sa mga Chinese. Bakit nagbago? Ano ba ang problema natin? Dakot kasi tayo ng dakot! Sila, kurot lang ng kurot!

Mayroon kaming naging participant before na nagsabi, “Sir, hindi naman totoo ‘yan! I know a Chinoy, he drives a BMW. That’s a P5 million car! Kurot ba ‘yun?” Malamang kurot ‘yun! Noong binili niya ‘yun, mayroon na siyang P100 million na savings! So kurot lang ‘yun! Nandiyan ka pa ba?

Isang Kahig, Isang Tuka 

Saan ka makakakita ng mga taong isang kahig, isang tuka? Saan? Sa squatters area? Magtigil ka! Gusto mo’ng makakita ng mga taong isang kahig, isang-tuka? Sa Ortigas, sa Makati, may makikita ka.

What do I mean? Kapag hindi ka sumuweldo ng isang buwan, mabubuhay ba ang pamilya mo? Kung wala kang credit card, kung mawalan ka ng trabaho ngayon, ilang araw ang aabutin para mabuhay ng matino ang pamilya mo? Kapag nawalan ka ng suweldo, patay ka!

Ang mga Chinoy, kahit hindi muna kumita o magnegosyo, mabubuhay ng maganda. Bakit po? Kasi many years ago, kumahig sila ng kumahig at tumuka lang konti. Kaya marami sa kanila ngayon, tuka na lang ng tuka. Maraming Pinoy, kapag hindi tayo kumahig, wala tayong tutukain.

Ito ang masakit–sometimes, kahit matanda na tayo, kahig pa rin tayo ng kahig. Gaano karaming Pilipino ang 60 years old na ay trabaho pa rin ng trabaho? Puwede ba, simula ngayon, kumahig ka nang kumahig at iwasan munang tumuka. I-deprive ang sarili ng kaunti.

Ang pinakamasakit sa lahat ay ito–one day, you want to work, but you cannot work. You are already old. Why? Nagpakasasa ka kasi noong bata ka pa. Inubos mo na lahat ng lakas at kalusugan mo sa bisyo.

Tanong: Masama ba’ng bumili ng mahal? Sagot: Hindi! Basta kinukurot lang! Kapag nakakita ka ng kasamahan mong naka-Nike shoes, huwag mong husgahan kaagad iyong tao! Malay mo, kinurot lang niya iyon. At the end of the day, what is happening to other people is not important. What’s more important is what is happening to you.

The Bible says in 1 Thessalonians 4:11, “Make it your ambition to lead a quiet life. You should mind your own business and work with your hands, just as we told you.” 

(Excerpted from Vic and Avelynn Garcia’s book entitled Kontento Ka Na Ba Sa KaPERAhan Mo?

>> 3 Years ago, Like most employees i was also financially struggling. Over worked, stressed and with no savings under my belt until i found a Money making Machine called GFI. Not only was i able to resigned from my work because of GFI, it gave me an opportunity to have more quality time with my family and secure my kids future as well.

If your interested to know more about GFI, just visit my Facebook page, add me and send me a PM and let me share to you "possibly" the greatest opportunity you'll ever do

https://www.facebook.com/dondy.gonzales

Cheers!!

Play Now then Pay Later or Pay Now then Play Later, Which one are you?

Have you ever heard of the phrase or quote  " Play now then pay later or Pay now then play later"? or to be more specific "You can pay now and play later OR you can Play now and pay later. Either way you have to pay" as per John Maxwell

This is a very common quote used in any seminars or conference specially related to financials. But what does it really mean? I can associate a word to this quote that for me leans toward "Paying now so i can play later", whats that word? "Delayed Gratification"

As per our trusted Wikipedia "Delayed Gratification" or deferred gratification is the ability to resist temptation for an immediate reward and wait for a later reward. Its the patience to wait for that greater long term reward rater than the small short term ones. 

In regards to Financial Freedom, wait whats Financial Freedom?

Again as per Wikipedia Financial Freedom is described as the state of having sufficient personal wealth to live without having to work actively for basic necessities or simply put the capability to buy or spend without looking at the price tag and having the financial security knowing there's more where that came from =)  (that's my definition anyways hehe)

Going back, Financial Freedom is the goal or dream of any person and the quote mentioned above directly affects our Financial Freedom. How? Its the choices we make in the process that affect the end goal which is Financial Freedom. Simply put most people would rather "Play it now then Pay it later, for example, buying "stuffs" (gadgets,shoes) taking that vacation, parties and such then Paying for it afterwards with greater Time and effort. While "some"  will "Pay it now, then Play later". these are the people who will save and invest now, instead of buying that new phone or taking that short vacation so that in the long run they can get that house or that dream car.

I have met a lot of people who have chosen to "Pay now" and share these characteristics:

• Live on less than they earn
• Choose to invest and save for their long term goals

Because they are "paying now" they are going to be able to play later while  those who chose to "Play now" and while the fun lasted when its time to "Pay" its not Fun anymore =(

So how do we get to Financial Freedom? The answer lies in Savings and Investment! Now, most people will say that Savings and Investing is nearly impossible for them as their current income is not even enough. So they will put Savings and Investing on the sides for a later future when they get an "extra income" but how and when will that happen? Rather than looking down on our primary source of income, why not check a solution that's in reach but mostly overlooked.

Whats that? Our lifestyle and spending habits is one factor that we can look into and work on. If you look at our lifestyle and spending habits, its not the amount that's an issue but the "Will to save and invest" is our challenge! When a person has the "Will" to do it, then it can be done!

As i read before "Savings is not proportionate to the amount of money you earn but rather the amount of money you save from your income. As we all know, expenses is directly proportional to the amount of income that we have. The higher it is, the higher our expenses as well. In short, if we want to save, let’s take a look at how we spend our money and look for ways to decrease expenses and increase savings"

Lets look at some examples to illustrate and prove that if we have the "Will to save and invest", look at what will happen 

I know most of us drink Starbucks coffee, coming from the BPO industry, the coffee chains have been synonymous to us either for the coffee experience or for some the "status" . Assuming per order is around 200Php and you consume around 5 orders per month or even more. Instead of having this, you can change your spending habits and lets say trim down on the coffee or opt in for a more affordable coffee. Now look at this, most of the BPO employees nowadays earn 10,000 per cut off or roughly 20k in a month (give or take). Now what happens when you spend on that coffee every month that's 1000 as an expense and continue that for 12 months or 1 year that totals to 78,000Php for your coffee,  "Play now then Pay Later". Now you might say, really? who drinks that much coffee anyways! Well 9 years in the industry and Yes, people drink that much coffee (for what ever reasons) were not even taking in account those pastries consumed or lets say drinking or vices. Now i'm not saying Coffee is bad, my point is plain and simple, can you imagine what you can save and earn if you used that money wisely instead.

Now, lets say you take part of that 10k salary and instead of spending it, we chose to invest it, looking at a long term goal "Pay Now and Play Later". Lets say that investment cost 8900 and its earns exponentially every month (by the way, the figures onward are the actual figures you can earn) As any, legal and secured business, its a long term plan and as mentioned its exponential so even though the earnings at the start are at minimal in the 1 year sample it doubles, triples and continue to grow even becoming passive from an active income. That's more than 100% returns and by this time you can drink any Starbucks frap or coffee you want even at multiple times, everyday! 

How about the latest gadgets like phones and cameras? Do you really need that stuff? Is it a necessity or a luxury we try to live by today? Lets say your buying the latest phone every 3 months and it cost around 30,000php (take note that the latest Iphone actually cost around 50k). Thats 120,000php in a year compared if your already earning exponentially! Not to mention that gadgets like all liabilities, there values may go down as time goes by.  

The list of samples can go on, from shoes, clothes, bags, vices even unscheduled travels. On the other hand, what if we play it smarter and think long terms. What if think "Pay now then Play later", delayed Gratification,  this is what all rich people think and do with. What can happen to you  and what can you accomplish 5 or 10 years from now with just 2-3 years of sacrifice and disciple. Will you have that very own house or that fully paid car?

Now nobody said, getting rich and having Financial Freedom will be easy, it requires a lot of hard work and disciple but more importantly it takes "Will"

Can you sacrifice today for a better and brighter tomorrow?

If we only  practice the right money and spending habits, live by the "Pay now and Play Later"/Delayed Gratification principle then truly we can live abundantly for the years to come! 



>> 3 Years ago, Like most employees i was also financially struggling. Over worked, stressed and with no savings under my belt until i found a Money making Machine called GFI. Not only was i able to resigned from my work because of GFI, it gave me an opportunity to have more quality time with my family and secure my kids future as well.

If your interested to know more about GFI, just visit my Facebook page, add me and send me a PM and let me share to you "possibly" the greatest opportunity you'll ever do

https://www.facebook.com/dondy.gonzales

Cheers!!