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!!

Can you earn BIG money and get RICH in employment?

First of all, before you continue reading this article, let me already advise that this may hit "some nerve" for some people. As they say, "the truth hurts but it will set you free". Now if you are not open to others ideas and creative criticisms then, please don’t read any further but if you are open to others ideas and feel that this is an article meant to help you then, enjoy.

I have been catching on my readings, as well as some bonding moments with my peers and I realized I’m always being bombarded by stories about how hard it is being an employee specifically on the financial aspect. So I made some research online, gathered some experiences and stories and this is what I got.

Honestly, this is a crucial everyday topic already that I am well accompanied to as well, so I used to share the same sentiments and as it looks, not much has changed.

I don't want to say that nobody gets rich in employment, period, since I have read some items that are an exception that does make sense. Here are the exceptions:

1) Employees invest their hard earned money (retirement pay more or less). This is no trivial task since some have taken years to even save in the first place to actually invest it. I know a lot that was only able to invest upon retirement or near that age.

         a) Some would invest in traditional business like water refilling stations (I know a family friend who did this, father retires then invested in the province)
         b) A few will invest in bonds, shares and mutual funds. As much as this is  a enticing and could be lucrative, these are no items for beginners and a lot lose big money from the start due to lack of information and experience.  I suggest you equip yourself first with all the information you can get and an experience mentor/adviser before even attempting this one.
         c) And of course there is the MLM opportunity. Low capital, minimal risk and high returns. Now I will not focus on this for now since I am an active part of the industry and I’m not here to up sell myself.

But in reality while you’re tied in your employee career for the next few decades and have not saved that sum of money, these are what most people are doing.

1) Have you seen and met colleagues selling all sorts of knick knacks and homemade delights? Yes, this is what most are doing part time to make ends meet. Now there is nothing wrong with this, it is an honest source of income and hard work as well. In my Manager career, I was even a loyal buyer from some staff and sometimes a promoter (Christmas cookies or cakes anyone? hers are delicious) so next time, somebody tells you " i don’t like to sell anything" one point of your life you actually sold something from small knick knacks to an idea. Promoting is still selling.

2) Need insurance? Oh yeah, there are a lot of them as well =) insurance is not a bad investment, in fact one of my mentor is worth 20 million in insurance alone. He even said that insurance is a great investment for your money once you have a money generating machine other than your work because if this comes from your pay slip alone, it’s still an expense that could be challenging to maintain.

3) Are you looking for a house or maybe a condo? Honestly, if any of them offered me a place within my choice of locality I could have gotten one then but laguna, taytay and montalban was too far for me back them. Again, another good source but this is more of one time big time for me. No sale no allowance, it’s like selling cars.

4) Pautang (lending money)....too risky for me. Especially in the BPO industry I know a lot of very notorious people and horror stories about this. Again, if your good at harassing people to pay up (just kidding, not always the scenario) then 3%-5% interest are high returns ( Kapit sa patalim people, I know a lot of them. Sadly, some could have avoid this with a little good choices and decisions)

5)  And of course there is the MLM opportunity. Low capital, minimal risk and high returns. 

6) I don’t even want to tackle the shady deals but YES, there are a lot of them. Back then I even know people who would take coupons and make up liquidation reports just to kick some extra. Not recommendable by my standards.

But this has nothing to do with your work directly, what can you do with your work that can give you the chance to earn big? Just one way and that is through “Promotion”

Have you heard of the 80%-20% rule? 80% of the money and compensation only goes to the 20% population. That 20% is such a small percentage to move into especially since that 20% is limited to a number of allocations only. What am I talking about? That 20% is your corporate leaders and managerial positions and trust me they’re not going to give those positions easily because they themselves got it through hook or crook (just an expression)


If i may quote this line from a article from Phil daily inquirer
"It is evident that long years of dedicated service are not the key to making big money out of employment.

This is bad news for employees who have been programmed to believe that as long as they continue to make the businessman rich, they too will get rich when they retire. When successful businessmen retire, they wallow in luxury. When an average Joe retires, he either invests his hard earned retirement money
wrongly, loses medical benefits for sicknesses he contracted as an employee, or simply squanders his big money that he wasn't used to have all his life. Ces't la vie."

Yes, the only option to technically earn big in your work or employee career is be promoted and keep being promoted. Note that I said "technically" not "ethically", you know what I mean.

So what do you need to prepare yourself for the corporate “Rat Race”

Its smart to start in a good company, Why? Promotion requires time and a lot of effort and the last thing you want is to invest those in the wrong company or career path.  Always work with your options, don’t just jump on the first ship that will offer you a ride. Be smart and do your home work about the company and your possible growth path but again this is no easy feat. Everybody has the same idea as you and some may even have the better school and credentials. be ready to fight for that position if you don’t want to be just a average joe at the office.

Your talents and skills. This is your value to the company. The more you have this, the more valuable you are.

Always learn and keep learning. It adds to your value. 

Always have the edge compared to your peers and competition (friendly of course) Always remember, at the end of the day you are still a number to the company and a number away from the next replacement. Number can pertain to stats, deliveries, sales or success rates/projects.

Yes, Attitude is still important. For me at least, when I screen new candidates for positions I take in greater consideration over talent or skill is the person’s attitude and interpersonal skills. Anything can be learned and taught but attitude can make and break everything not to mention you don’t learn this overnight. 

Experience is always the first requirement that all people ask for so be prepared to burn a lot of time to acquire experience. Yes, you can say some get lucky but as a standard, experience is the first thing to check.

Most importantly, be well informed. Office politics anyone? If you’re not aware of your own place politics well, let’s just say it’s an advantage to be in the know. By the way this can make or break you, even if you’re the best in the game, be warned it’s not a fair ball out there.

Hopefully, I didn’t forget anything. Give or take that is what they or you will have to look for if you want to climb that ladder and run that race. As for me, I’ve been there, it was an experience and I would say people can go through the same experience so they can get their own experience and learn the same values because at the end of the day even the big guys in my old companies were always on the lookout for the next opportunity to earn more. I’ll be honest, resources can do a lot in life that’s why admit it or not everybody is looking for chance to earn. There is nothing wrong with money especially if it will make the life of your love ones more comfortable.

As i was always advised, there is no such thing as easy money or easy way. There are always challenges but nobody said that we cant be smarter and handle it better.

The only question I leave you is this, given the chance would you prefer to earn 100,000 thousand after years of hard work when you can earn the same amount in half of that time or even months? Nothing is impossible, there is a lot of ways to earn and some may even know something that’s not included in this article but the point is opportunities are just a waste when you don’t give it a chance.

Rather start young, since you’re going to do business when you’re old anyway.