Goals as applied to financial planning must be Specific as to How Much money you want to accumulate, by When, and for What Purpose.
Thus, this will vary in terms of timing and purpose.
It will also have to be anchored on your current Cash Flow situation.
If you have a hefty cash flow, then you can proceed with the goal setting.
However, if your cash flow is negative and wont be able to support your goals, this must be the first thing you need to address or solve. You first need to define your goal for having positive cash flow.
Your timing for your goals must include the Short Term ( about 1- 2 years) , Medium Term (about 3-5 years), and Long Term which is about 6-10 years).
Set your goal on how much you need to save for Emergency Funds. These are funds used for emergencies such as minor repair of your car, your house, or for medical emergencies.
We set aside at least 50K for this purpose.
You may use the 3-6 months of your monthly expense as guide. So, if your currently zero on this, you need o have a plan when can you fill this up. This must be part of your short term goal.
If you are heavily indebted as most people are, you need to set a goal when you will be debt free. List all your debts, and include the detail of much interest you pay for each.
Prioritize the debt with the highest interest.
For us, this was our biggest money issue. We have so much credit card debts, and so many loans to pay up. We lined up all these payables, and set target for each item prioritizing the ones which has the highest interest.
If you are employed, normally, the company provides short term health care and Life Insurance Protection. However, most if not all companies, do not provide long term health care and that the coverage of your health care and insurance protection is co-terminus with employment. This means that when you resign or they yank you out of the company, you lose the benefit. Thus, it is of extreme importance that, you set a goal for this very basic need: Health Care (Short and Long) and Insurance Protection.
We recommend you seek professional help in determining your needed Insurance Protection coverage.
Normally, we calculate Insurance Protection by what we call DIME Method. By DIME we mean
D- ebt Payments ( swum total of what you have as credits)
I- ncome Replacement (10 X Annual Income)
M- ortgages ( sum total of all mortgage loans)
E- ducation (Projected Cost of Education of your children)
If you are in your senior years, you need to also seriously consider your Estate Planning.
This by itself is a long and extensive topic to cover. This certainly will need professional help.
Once you have calculated your insurance protection needs, you subtract this by the amount of investments you already have. For example
You also need to set a goal of how much funds you want to accumulate for your retirement. The recommended amount is about 10X your Annual Income. So if you are earning 1M each year, your target is 10M Php. Consider when you will retire and calculate how many more years you have. Then project how much you will be able to accumulate on your target date or year in your goal set.
In summary, Goals must be be set for the following:
1. Health Care
2. Insurance Protection
3. Emergency Fund Build Up
4. Debt Elimination
5. Investing for the Future (Retirement)
The above order needs to be seriously considered. Most common mistake is to prioritize investments over the first four resulting to disastrous consequences .
Suppose you have 1M investments, but you have Credits amounting to about the same, and you do not have insurance protection. What do you suppose will happen to your family?
Do not commit the mistake of ignoring your health care and insurance protection simply because you are covered by your company. The earlier you get your own personal account on these two, the better for you.
In our company; IMG, we have a 3 in one solution to your health care, insurance protection and investment needs. If you are interested to know more about this, just send me an email.
After setting up your goals, you are now ready to set up your plans to achieve these goals.
See you later on the next blog about planning to achieve your goals...
God bless.
Sunday, August 30, 2009
Wednesday, August 26, 2009
Another important considerations before we create Goals and Plan
Dear family and Friends, I hope the 10 common money mistakes open our financial eyes a little bit to make us really see clearly our goals.
I would like to add a few more considerations before we embark on our goal setting and planning.
Let me share with you some of what I personally consider as the five (5) most important considerations in setting your goals:
1. Put God first and everything shall follow:
My motivation to be be wealthy is to be able to give back more for God. "Magis Deo". This is also the name of the Marriage Encounter Community my wife Fely and I belong.
All the things we can amass will mean nothing if our motivation is for selfish gain.
So your goals must include donating or helping out your favorite charity.
For us, we have listed up Magis Deo Community, Anawin of Bro Bo, Brotherhood Of Christian Businessmen and Professionals.
We give portions of our tithes for each of these communities regularly.
This is our way of loving God with all our heart, mind and soul.
This is our way of giving t God our Talents, Time, and Treasure.
God knows what we need, what we have and we will have even before we were born. If we put Him first in our plans and goals, He will surely bless it.
2. Love your Neighbor as yourself:
Your goals must include as well your neighbors. Who are your neighbors? The closest one you have is your own family, Your relatives, and your friends.
As for me and my house, we include in our goals setting aside funds for the college education of relatives and even unknown needy students.
God in His generosity cannot be outdone. The more we give, the more we will receive. Thus, if we set goals, we must not set only goals for our own selves and our family.
You may ask, "what? I have not enough money to spend for myself and my family, I still have to consider others?"
That's precisely why you have to set this goal so you can achieve it.
3. Erase all Negative Money Mind Sets:
To be wealthy is good, and God in all His goodness, do want all His children to be prosperous.
So much had been said about the wrong interpretation of Bible verses regarding the camel and the rich man as we all as that of being blessed if you are poor.
How can we give offering back to God (item 1) and be of help to our neighbors (item 2) if we ourselves are needing help?
Bro Bo calls this as "romanticizing poverty". It's a lame excuse for not using our God given gifts to the fullest.
Therefore, before we even create our goals and plans, we must ensure all the negative money mind set are already out of our system.
4. Get a Coach:
You maybe able to create your plans and goals by yourself, but it certainly will be much easier and , be more realistic and faster if somebody who cares for you can coach you to success.
Charise, the young talented singer managed by Oprah is coached by her mom. Manny "Pacman" Pacquiao , is coached by Freddie Roach.
So if you want to set up achievable goals, get help from experts.
This will enable you to consider all aspects of planning from emergency preparation to long term planning.
You can get our services for free if you want to. Just contact us for appointments.
5. Involve the whole family:
Husband and wife together with their kids must jointly plan for their financial future. If your kids are to young to be involved, then they are exempted. But, never should a wife or a husband do the plan individually. It must be a conjugal planning set-up and agreed by both parties.
You can involve kids at least 7 years of age , but of course, you need to adjust your terminologies to what they can understand.
My youngest kid when we embark on our planning was 10 years of age. A little late than my recommendation as we only got into this planning when she was that age.
So there you are, the considerations we must have before we embark on our goal settings.
Now that you gone through it, you are ready to start your goal setting and planning.
Will proceed with the detail of goal setting on our next blog..
God bless.
I would like to add a few more considerations before we embark on our goal setting and planning.
Let me share with you some of what I personally consider as the five (5) most important considerations in setting your goals:
1. Put God first and everything shall follow:
My motivation to be be wealthy is to be able to give back more for God. "Magis Deo". This is also the name of the Marriage Encounter Community my wife Fely and I belong.
All the things we can amass will mean nothing if our motivation is for selfish gain.
So your goals must include donating or helping out your favorite charity.
For us, we have listed up Magis Deo Community, Anawin of Bro Bo, Brotherhood Of Christian Businessmen and Professionals.
We give portions of our tithes for each of these communities regularly.
This is our way of loving God with all our heart, mind and soul.
This is our way of giving t God our Talents, Time, and Treasure.
God knows what we need, what we have and we will have even before we were born. If we put Him first in our plans and goals, He will surely bless it.
2. Love your Neighbor as yourself:
Your goals must include as well your neighbors. Who are your neighbors? The closest one you have is your own family, Your relatives, and your friends.
As for me and my house, we include in our goals setting aside funds for the college education of relatives and even unknown needy students.
God in His generosity cannot be outdone. The more we give, the more we will receive. Thus, if we set goals, we must not set only goals for our own selves and our family.
You may ask, "what? I have not enough money to spend for myself and my family, I still have to consider others?"
That's precisely why you have to set this goal so you can achieve it.
3. Erase all Negative Money Mind Sets:
To be wealthy is good, and God in all His goodness, do want all His children to be prosperous.
So much had been said about the wrong interpretation of Bible verses regarding the camel and the rich man as we all as that of being blessed if you are poor.
How can we give offering back to God (item 1) and be of help to our neighbors (item 2) if we ourselves are needing help?
Bro Bo calls this as "romanticizing poverty". It's a lame excuse for not using our God given gifts to the fullest.
Therefore, before we even create our goals and plans, we must ensure all the negative money mind set are already out of our system.
4. Get a Coach:
You maybe able to create your plans and goals by yourself, but it certainly will be much easier and , be more realistic and faster if somebody who cares for you can coach you to success.
Charise, the young talented singer managed by Oprah is coached by her mom. Manny "Pacman" Pacquiao , is coached by Freddie Roach.
So if you want to set up achievable goals, get help from experts.
This will enable you to consider all aspects of planning from emergency preparation to long term planning.
You can get our services for free if you want to. Just contact us for appointments.
5. Involve the whole family:
Husband and wife together with their kids must jointly plan for their financial future. If your kids are to young to be involved, then they are exempted. But, never should a wife or a husband do the plan individually. It must be a conjugal planning set-up and agreed by both parties.
You can involve kids at least 7 years of age , but of course, you need to adjust your terminologies to what they can understand.
My youngest kid when we embark on our planning was 10 years of age. A little late than my recommendation as we only got into this planning when she was that age.
So there you are, the considerations we must have before we embark on our goal settings.
Now that you gone through it, you are ready to start your goal setting and planning.
Will proceed with the detail of goal setting on our next blog..
God bless.
Tuesday, August 25, 2009
Create a Plan
Determining your Cash Flow and Net Worth should be accurately done.
It must also be done as a family. Everyone must be involved. This will make the goal setting and planning much easier as you can have also have the entire family participate.
Goals as far as finances are concerned are simply a list of how much by when and for what purpose. For example, you want to save 400,000Php for a Holy Land Tour for you and your wife 5 years from now. Or , you want to build investment of 6,000,000 Php for your early retirement in 10 years.
Financial Planning is very much the same as planning a trip. You need to know where you are starting, and you have to define where your destination is, and what means of transport are you going to use.
Before going into the goal setting, let me share with you first an article from INQUIRER.net:
God bless.
It must also be done as a family. Everyone must be involved. This will make the goal setting and planning much easier as you can have also have the entire family participate.
Goals as far as finances are concerned are simply a list of how much by when and for what purpose. For example, you want to save 400,000Php for a Holy Land Tour for you and your wife 5 years from now. Or , you want to build investment of 6,000,000 Php for your early retirement in 10 years.
Financial Planning is very much the same as planning a trip. You need to know where you are starting, and you have to define where your destination is, and what means of transport are you going to use.
Before going into the goal setting, let me share with you first an article from INQUIRER.net:
"10 most common money mistakes
By Ma. Salve Duplito
INQUIRER.net
First Posted 01:10:00 12/01/2008
Filed Under: Personal Finance
WHAT money mistakes can turn P20,000 to waste in a year?
While mistakes are normal (even so-called experts make them), it won't hurt to know which ones you are committing and how to learn from them.
Putting your act together financially may prove especially useful when times are tough and rocky because even little mistakes that happen again and again can set you back thousands of pesos in a year.
Here are 10 money mistakes most of us make:
Mistake #1: Living beyond your means
Filipinos are consumed with "wanting to live a better life."
Are you trying to live "that kind of life" with income that cannot sustain that lifestyle and ending up spending more than your monthly paycheck? Yes, you can fund that lifestyle with debt. Don't. Spending more than you earn is the surest way to keep that "better life" further away from reach.
Ralph Liew, chairman of the International Association of Regional Financial Consultants (IARFC) for the Philippines, Thailand, Malaysia and India, points out that the millionaires next door are the ones who save so much more than they spend.
"They are the ones who are saving a lot of money," he says.
The fix: Put off expenses if the income for the month will put you in debt or cause you not to save money for that period. Thinking twice about small things like the cost of lunch, a frapuccino or dinner at a restaurant will instill discipline and the habit of living within your means, which is most valuable in fixing money mistakes.
Mistake #2: Not saving enough
You've heard of the expression "It's not what you make that matters, it's what you keep." Saving monthly is the fundamental habit that makes any person-- whether a Jollibee crew or a professional working in a posh office in Makati--wealthy. Starting your first job and earning minimum wage may not make it easy for you to save regularly, but P50 savings per week in a simple jar near your bed is not a bad start.
As you mature, it will be easier to set aside a bigger chunk of money because you've been used to the habit.
"I save half of my salary automatically and try not to think about it," says Anna, a professional working in Ortigas.
The fix: Find a way to automate your savings to make it easier for you to save. There are some banks that provide this service. Make it a goal to save monthly, even if it's just a small part of your income--say 10 percent. Then increase this regularly when finances allow you to squirrel away more of your income.
Mistake #3: Being materialistic
It is common to see families in the provinces living simply with chickens running around in the yard, pigs being raised in the backyard, malunggay and other vegetables growing near the home. IARFC's Liew says when he saw Filipinos living this way, he realized that living simply and not measuring your worth by looking at what you have and what you can buy makes a person's life more meaningful.
"Don't try to keep up with the Joneses and don't just keep looking at the material part of life. Be frugal; don't overspend. Some of the people I see in the provinces live simply and they are okay," says Liew.
The fix: Keep your attention focused on the things that matter most: health, family, friends, and community. While money may make your children happy because of the things that it buys, there are other things that will make them equally happy, like loving attention, quality time and playing together, among others. Sometimes, the returns from non-monetary gifts are even higher.
Mistake #4: Giving in to greed
Billions of pesos every year are sucked into get-rich-quick schemes and scams that easily separates a Filipino from his hard-earned money. Liew says the reason for this is greed. Running after very high returns is a sure way of getting scammed.
The fix: Don't be wowed by quick wealth. Lightning may strike for some people, but the more stable and sure way to wealth is a slow accumulation of savings and investments. How about that hot stock tip or "new investment strategy" earning four percent in a day that made someone a millionaire? Just walk away from it. They will never tell you just how quickly they lost their money.
Mistake #5: Not knowing what you want
"People don't know what they want and then they end up wanting everything they see," says Liew. One of the building blocks of wealth is to know yourself and your limitations as well as your strengths. Husbands, wives and children should take time to talk about financial goals (i.e. our own home in three years, our own car in two years, studies in the United States for Junior in 10 years, etc.).
The fix: New Year or this coming Christmas holiday is a good time to create a financial road map for yourself or your family. Talk about what you want and how you intend to get there. Think about how long you want to attain your goals. Make a pact to revisit your goals every year to see how you are doing.
Mistake #6: Failing to pay off debts
The Philippines owes P122 billion in credit card debt, P14.2 billion of which have already fallen overdue as of June. Unfortunately, that's only a small part of consumer debt, as loan sharks still abound. Debt is like a Damocles sword that hangs over your head and makes you afraid to wake up in the morning.
Interest from debt never sleeps; it doesn't take days off or holidays. They are worms that eat voraciously at your financial dreams.
The fix: If you are thinking of borrowing money with no plan on how to repay it, don't.
If you have debt or several debts that need to be paid, create a plan now.
Start paying the ones with the highest interest while paying off the others with as much money as you can spare.
Then work on through that list until you have paid everything.
Mistake #7: Getting killed by advertisements
Glossy magazine inserts come in through the mail at a frenzied pace when the holiday season draws near. There are flat-screen LCD televisions to buy and new mobile phone models. Resist them if you don't need them or can't afford them yet.
The fix: If you are vulnerable to advertisements, make the remote your best friend and speed up your channel surfing. Don't even start flipping that glossy magazine insert. Avoiding advertisements or keeping yourself disciplined enough to enjoy them from a distance should help you keep your finances secure this holiday season.
Mistake #8: Not having a plan
"One of our most common mistakes is not having a financial plan, not following up on the plan and not implementing the plan," says Liew. He notes that many people have New Year's resolutions- -for example, to quit smoking--but find themselves still doing so when the next New Year's eve arrives.
The fix: Give yourself the gift of your very own financial plan this Christmas season. You can talk to a financial planner to help you out or do it yourself.
There are many resources on the Internet to help you create a plan that will save you from money mistakes and point you to the right direction when it comes to understanding your money personality, how to save and invest, how to prepare to retire wealthy and prepare to be pampered in your golden years.
One of these is MoneySmarts, the personal finance blog of the INQUIRER.net.
Mistake #9: Not having financial education
People think financial education is only for those working in banks, mutual funds or in the financial services industry.
Granted, mathematics or statistics are not easy subjects for all, but knowing financial principles is useful to everyone.
Liew says that even children should have subjects on financial management.
The fix: Don't be shy. Ask among your friends if they know something about taking care of finances. Invest in books and take classes. Personal finance is a growing topic in local media.
Mistake #10: Procrastinating
Time doesn't stand still, not even for the Pope.
The best time to start making money moves that will save you from a life of want and need is now, not tomorrow or next week.
The best time to start a budget is now. The best time to save for retirement is now.
The fix: Stop reading and start doing."
It's very practical and good guide to reflect on before we drill down into our goals.
God bless.
Sunday, August 16, 2009
Back to Step 1 for Details
Hi there. Now, let's go back to the very first step to define details of how we will go through it.
I will make it so simple that you can do it with ease.
However, to really expedite and speed up your journey towards being truly rich, I encourage you to attend the seminar of Bro Bo Sanchez on " Truly Rich Financial Coaching". You may want to also attend our on going-free seminars at Dasmarinas Cavite and in Makati. Email me at : richbenj.santiago@gmail.com for further details.
Now, back to the first step.
To take the first step, there must be a motivation , dreams and aspirations, or a driving force why we want to be rich, that is "truly rich".
For our family, our primary motivation why we want to be rich is for us to be able to help more people. We want to have more in life so we can give more to God.
That's for me and my family. Now, you have to define that first before we make our first step.
So, what's your motivation to be rich? Do not be like the fool who amassed wealth just for his selfish gains.
We should also be open to the abundant blessings that the Lord will pour down on us. There is so much wealth in the universe.
Now, you are ready to take the very first step. Step 1: assess your current situation.
We need to look first at your Cash Flow. By Cash Flow , we mean what are your sources of income , or "In-flow" of Cash, and your expenses , "Out-flow" of cash.
List down all the details of how much you spend on Food, Shelter, Clothing, Education, Health-care, and Lifestyles.
You have to drill down to the daily details to weekly to monthly and yearly. Use an Excel Worksheet for ease, or use notebook and pen to exactly know the details.
Next, do the same detailed listing of your income. You may have income from business, or your job, or investments, etc.
Based on the list of of the Cash In-flow and the Cash Out-flow, determine if you have anything left for your savings, investments and protection.
For sure, there are just three possibilities. One is that your Income is less than your Expense that you have no savings but instead credits or "utang". It will be a little less of a problem if your net balance is zero, but the best is that you are living below your means. That means that your Expenses is less than your Income.
Ideally, 10% must be offered back to the Lord , and 20% to your savings and investments and the remaining 70% will be the amount allocated for all our expenses. For our family, this is our basic guide and we hope to increase the amount of tithes we can offer back to God.
Now, I encourage you to proceed in creating your "Cash Flow" worksheet.
If you need the form from me, just give me an email at this address: richbenj.santiago@gmail.com
Next thing we need to assess closely is your "Net Worth". This is very important to know to establish how far are you from your wealth building target.
I know you are excited about this, but let me allow you first to focus on your frist work sheet.
Talk to you again later...
God bless....
I will make it so simple that you can do it with ease.
However, to really expedite and speed up your journey towards being truly rich, I encourage you to attend the seminar of Bro Bo Sanchez on " Truly Rich Financial Coaching". You may want to also attend our on going-free seminars at Dasmarinas Cavite and in Makati. Email me at : richbenj.santiago@gmail.com for further details.
Now, back to the first step.
To take the first step, there must be a motivation , dreams and aspirations, or a driving force why we want to be rich, that is "truly rich".
For our family, our primary motivation why we want to be rich is for us to be able to help more people. We want to have more in life so we can give more to God.
That's for me and my family. Now, you have to define that first before we make our first step.
So, what's your motivation to be rich? Do not be like the fool who amassed wealth just for his selfish gains.
We should also be open to the abundant blessings that the Lord will pour down on us. There is so much wealth in the universe.
Now, you are ready to take the very first step. Step 1: assess your current situation.
We need to look first at your Cash Flow. By Cash Flow , we mean what are your sources of income , or "In-flow" of Cash, and your expenses , "Out-flow" of cash.
List down all the details of how much you spend on Food, Shelter, Clothing, Education, Health-care, and Lifestyles.
You have to drill down to the daily details to weekly to monthly and yearly. Use an Excel Worksheet for ease, or use notebook and pen to exactly know the details.
Next, do the same detailed listing of your income. You may have income from business, or your job, or investments, etc.
Based on the list of of the Cash In-flow and the Cash Out-flow, determine if you have anything left for your savings, investments and protection.
For sure, there are just three possibilities. One is that your Income is less than your Expense that you have no savings but instead credits or "utang". It will be a little less of a problem if your net balance is zero, but the best is that you are living below your means. That means that your Expenses is less than your Income.
Ideally, 10% must be offered back to the Lord , and 20% to your savings and investments and the remaining 70% will be the amount allocated for all our expenses. For our family, this is our basic guide and we hope to increase the amount of tithes we can offer back to God.
Now, I encourage you to proceed in creating your "Cash Flow" worksheet.
If you need the form from me, just give me an email at this address: richbenj.santiago@gmail.com
Next thing we need to assess closely is your "Net Worth". This is very important to know to establish how far are you from your wealth building target.
I know you are excited about this, but let me allow you first to focus on your frist work sheet.
Talk to you again later...
God bless....
Thursday, August 13, 2009
Act on it ...continued
Hi there, I hope you enjoy and learn at the same time is acting on it to be Truly Rich....
To ensure success in your journey of actually executing your plans, you need to ensure you have a "coach".
A coach will speed up your journey as he or she can show the right path and enable you to avoid mistakes in your actions. Much like a Roach to Pacquiao... got it?
Another thing is that as you execute your plan, remember that end point is not mere execution of the plan but the end results you aim for.
We can be your coach for free. Just get us connected and will be more than happy to help you out. That's our mission. By we, I mean me and my beautiful wife who completed her "RFP" Training. Email us at : richbenj.santiago@gmail.com
Your action plans must focus on reducing your expenses and increasing your income.
Reducing expense entails a lot of discipline and family involvement. Moreover, both the husband and the wife must have the same money mind sets and directions.
Increasing income on the other hand entails maximizing potentials of both your time and your cash.
I will give you more details on this later.
Today, let me tackle another step. step 5: reviewing and updating your end results and action plans.
End results pertains o your Goals that you have set along side with your "Cash Flow" and "Net Worth" which we discussed earlier.
If your actions does not bring you to the end results you have aimed for at the pace you desired, there is something you need to revise. My advice is not to change your goals as this is the easier part, but to put more aggressiveness in your actions.
As you would note, you have to review the end results first before you review your actions. Why? Because the end results will tell you if you are doing it fast enough and you are in the right direction. You will be surprised, some of your actions may actually be taking you farhter away from your goals.
One key factor you have to consider is in building up your wealth through your action plans, are you really accumulating assets or your building up your liabilities.
Robert Kiosaki in his book "Rich Dad Poor Dad" defines this "asset and liability" clearly. Asset for Robert is something you acquire that puts money into your pocket. While liabilities is the reverse.
I just want to add a little on this definition. Assets are not necessarily things or objects. This can be intangible assets like Financial Education, Advanced Studies, Skills Training, etc. which adds up to your value as a person.
This completes your steps... but not really the end of it. You will reckon with each steps like what seems to be a spiral staircase. You need to repeat the cycle over and over till you are satisfied with your results.
Now, that you have gone through these 5 steps. Our next discussion will be more details of each steps so that indeed you can achieve your own set goals....
See you again tomorrow.
God bless.
To ensure success in your journey of actually executing your plans, you need to ensure you have a "coach".
A coach will speed up your journey as he or she can show the right path and enable you to avoid mistakes in your actions. Much like a Roach to Pacquiao... got it?
Another thing is that as you execute your plan, remember that end point is not mere execution of the plan but the end results you aim for.
We can be your coach for free. Just get us connected and will be more than happy to help you out. That's our mission. By we, I mean me and my beautiful wife who completed her "RFP" Training. Email us at : richbenj.santiago@gmail.com
Your action plans must focus on reducing your expenses and increasing your income.
Reducing expense entails a lot of discipline and family involvement. Moreover, both the husband and the wife must have the same money mind sets and directions.
Increasing income on the other hand entails maximizing potentials of both your time and your cash.
I will give you more details on this later.
Today, let me tackle another step. step 5: reviewing and updating your end results and action plans.
End results pertains o your Goals that you have set along side with your "Cash Flow" and "Net Worth" which we discussed earlier.
If your actions does not bring you to the end results you have aimed for at the pace you desired, there is something you need to revise. My advice is not to change your goals as this is the easier part, but to put more aggressiveness in your actions.
As you would note, you have to review the end results first before you review your actions. Why? Because the end results will tell you if you are doing it fast enough and you are in the right direction. You will be surprised, some of your actions may actually be taking you farhter away from your goals.
One key factor you have to consider is in building up your wealth through your action plans, are you really accumulating assets or your building up your liabilities.
Robert Kiosaki in his book "Rich Dad Poor Dad" defines this "asset and liability" clearly. Asset for Robert is something you acquire that puts money into your pocket. While liabilities is the reverse.
I just want to add a little on this definition. Assets are not necessarily things or objects. This can be intangible assets like Financial Education, Advanced Studies, Skills Training, etc. which adds up to your value as a person.
This completes your steps... but not really the end of it. You will reckon with each steps like what seems to be a spiral staircase. You need to repeat the cycle over and over till you are satisfied with your results.
Now, that you have gone through these 5 steps. Our next discussion will be more details of each steps so that indeed you can achieve your own set goals....
See you again tomorrow.
God bless.
Saturday, August 8, 2009
Simple Steps to Riches (8/9/2009)
Day 1
Dear Friends,
I'm sure you have read many articles, books, and other reading materials on this topic.
But, what I'd like to offer to you are simple steps which you can easily follow.
These are synthesized from the readings I had including that of the Holy Bible.
For details, we have a Seminar offered for FREE every Monday and Thursday 5PM at our Dasmarinas , Cavite Office.
As early as now, I also encourage you to log in to Preacher in Blue Jeans, and the Truly Rich Club of Bro Bo Sanchez.
Now, back to the simple steps...
The very first step is to assess your current situation.
Each of us are of different stage in our financial life, thus , the next steps will depend on where we are at this point in time.
For example, you are just a student and is looking forward to an employment or embarking on your own business in about a year or two, you will have to take steps much much different from those who are already employed or running their business. More so, a person who is at their 4th Quarter so to speak will have to take a much entirely different step or steps than the previous.
Okay, I will be going to more specifics as we go on to this blog...
Keep on reading each day for a daily dose of this SIMPLE STEPS...
God bless....
Day 2
Hi there again, dear friends. Let's continue with our SIMPLE STEPS...
The basic tool to use in assessing your financial situation are available upon request from us.
This is actually an excel worksheet that will detail your Cash Flow with your Income Streams and Expense Details. It will also contain your Net Worth Calculations detailing your Total Assets and Total Liabilities.
This is one of the most powerful concepts we teach for free in our seminar
We cannot fix something we do not know, right? So that is why, it is with great accuracy and care that we must do the very first step we have defined.
This very first step is the most painful step for some. It is also the most fearsome. That's why, most people stop from here. But, I encourage you to be bold and courageous, and also diligent in this first step.
Also, the very first step must be repeated over and over to make sure you are able to plug in , other factors , major expenses, or surprise income streams, that you may not have considered in your first assessment.
I will detail this some more in the succeeding blogs.
Now after doing the assessment , the next step is to set your goals.
Goal setting like anything we do for our company or for any school activity deals with WHAT we want to ACHIEVE and WHEN. In the field of finances, it simply is HOW MUCH and WHEN and for WHAT PURPOSE. Example of this will be to have 3 Million pesos when I reach 45 to buy my own house and lot.
HOW MUCH- 3M, WHEN- at age 45, WHY- to buy a House.
Another example will be to have 20 Million by age 65 as my Retirement Money. So again, the HOW MUCH- 20M, WHEN- at age 65, WHY- for Retirement Money.
As you notice, the two Goals are dependent on the stage where the person is and what point is he looking at.
Moreover, we need to really be SMART in our Goals. S-pecific, M-easurable, A-ttainable, R-isk Stretched, and T-ime Bounded.
You can research and read more on what it means to be SMART. Or, if you want to know more , just drop me a mail so I can expound on it.
Goals must be linked to your current situation as it will ensure you can really be sure you can make it.
For example, you are already in your senior years, say 55, and you think about having your retirement at 65 with 20 million pesos. This means you have 10 years to achieve your goal. So that gives you the WHEN in number of years. The next Question of HOW MUCH will come from your Net Worth calculations from your first step.
We also have to go through the X-curve analysis. This is simply a risk analysis of your current financial condition. This will tell us How Much and When to protect our family and to guarantee a financially free retirement.
Another tool to use is what we call the Solid Financial Foundation Checker. To be financially secured , we must be able to define How Much of the following critical components of our financial building blocks should we have: Basic Health-care (Long and Short Term) , Protection , Debt Management, Emergency Fund Build Up , and Investments.
That's all for now.
See you again tomorrow , and let's go through the steps to riches... together....
God bless!
Day 3
As a review, we talked about the first two steps earlier: assess your current situation, and set goals.
I promise to detail this further in the succeeding days to come.
for now let me tell you about the next step: create your plan...
Based on the first two steps, you will have a more intelligent way of defining a plan how to achieve your goal or goals.
There are many ways and means of achieving financial plans.
You either work actively on it, or create multiple streams of active incomes.
Another way of achieving your goals is to create multiple passive income streams.
A fourth way is to reduce your expense .
But, in my experience, the best way is to combine all the four ways for faster achievement of your dreams and goals.
In creating your plans, you have to define the specific actions you will take and it must be laden with data of how much and when to match up with your goals.
The first two steps are very very critical and must be done with diligence as the action plans will be anchored on it.
However, among all the steps to take, this step of creating your plans is the most critical, as this will define your success in achieving your goals.
Limp plans ... expect not so good results.... aggressive and passion filled plans will definitely get you to your dreams....
Again, I promise you, I will have more details on this in the coming days.
I just want to give you first the basic idea before I go to the details.
That's all for now.
See you later.
If you want to ask me a question or give your comment, just click an email to this address: richbenj.santiago@gmail.com.
God bless.
Day 4
Previously we covered the first 3 steps. step 1: assess your current situation, step 2: set goals, and step 3: create your plan...
In our free seminars, we will give you worksheets that will aid you in doing the above steps with ease. You can also get our wholehearted support in doing these steps which are the critical steps in achieving your goals... financial freedom.
After completing your plans, do not stop at that point... There are a lot of people in this world who gets tons and tons of ideas in their minds, fired up to think of doing something about their current situation, but sad to say just think about it.
Failure to act on it is the basic source of failure. It's not the absence of ideas, techniques but simply the ability to transform ideas to action.
I must say this is rooted on discipline. I define discipline as doing things you can avoid to do. Note the emphasis is doing. Acting on it or doing it even if others do not. Or acting on something which may inconvenience you at that moment.
In the news this time of writing are the 4 gallant Honor Guards who stood by the coffin of Tita Cory.
They motionlessly stood for more than 9 hours on top of the flat-bed truck non-stop without water and food and not relieving themselves of their physical needs.
Add to this the fact that the weather changes from sunny to rainy , and not only water rain them down but some coins and flowers into their face.
It's involuntary but they did it because they follow orders ... and of course because of big D... Discipline
So, with that said and done, it's much the same way with our Steps to Riches.
We need the Discipline to take Action. That is our fourth Step: act on it!
When we gone through the same process. Our major issue in our financial life is our debt and mortgages. I will detail this in a much later blog. This really required us to absorb a lot of vitamin D ( Discipline) in addressing this particular issue.
We also have to have an open mind and flexibility. Remember, the end point of all we are doing is not the completion of forms and written up plans. The end point is securing a solid financial foundation.
As we act on our plans, we must be able to continue to track and review our Cash Flow, our Net Worth, and our X-Curve Checker.
You maybe overloaded with terms I have mentioned that looks and sound Greek to you at this time. But do not worry, I will detail this much much more in the next blogs.
As usual, if you have anything to say or comment about this blog, pls feel free to do so and click me an email: richbenj.santiago@gmail.com.
I will be more than happy to respond to you!
God bless !
See you tomorrow....
Dear Friends,
I'm sure you have read many articles, books, and other reading materials on this topic.
But, what I'd like to offer to you are simple steps which you can easily follow.
These are synthesized from the readings I had including that of the Holy Bible.
For details, we have a Seminar offered for FREE every Monday and Thursday 5PM at our Dasmarinas , Cavite Office.
As early as now, I also encourage you to log in to Preacher in Blue Jeans, and the Truly Rich Club of Bro Bo Sanchez.
Now, back to the simple steps...
The very first step is to assess your current situation.
Each of us are of different stage in our financial life, thus , the next steps will depend on where we are at this point in time.
For example, you are just a student and is looking forward to an employment or embarking on your own business in about a year or two, you will have to take steps much much different from those who are already employed or running their business. More so, a person who is at their 4th Quarter so to speak will have to take a much entirely different step or steps than the previous.
Okay, I will be going to more specifics as we go on to this blog...
Keep on reading each day for a daily dose of this SIMPLE STEPS...
God bless....
Day 2
Hi there again, dear friends. Let's continue with our SIMPLE STEPS...
The basic tool to use in assessing your financial situation are available upon request from us.
This is actually an excel worksheet that will detail your Cash Flow with your Income Streams and Expense Details. It will also contain your Net Worth Calculations detailing your Total Assets and Total Liabilities.
This is one of the most powerful concepts we teach for free in our seminar
We cannot fix something we do not know, right? So that is why, it is with great accuracy and care that we must do the very first step we have defined.
This very first step is the most painful step for some. It is also the most fearsome. That's why, most people stop from here. But, I encourage you to be bold and courageous, and also diligent in this first step.
Also, the very first step must be repeated over and over to make sure you are able to plug in , other factors , major expenses, or surprise income streams, that you may not have considered in your first assessment.
I will detail this some more in the succeeding blogs.
Now after doing the assessment , the next step is to set your goals.
Goal setting like anything we do for our company or for any school activity deals with WHAT we want to ACHIEVE and WHEN. In the field of finances, it simply is HOW MUCH and WHEN and for WHAT PURPOSE. Example of this will be to have 3 Million pesos when I reach 45 to buy my own house and lot.
HOW MUCH- 3M, WHEN- at age 45, WHY- to buy a House.
Another example will be to have 20 Million by age 65 as my Retirement Money. So again, the HOW MUCH- 20M, WHEN- at age 65, WHY- for Retirement Money.
As you notice, the two Goals are dependent on the stage where the person is and what point is he looking at.
Moreover, we need to really be SMART in our Goals. S-pecific, M-easurable, A-ttainable, R-isk Stretched, and T-ime Bounded.
You can research and read more on what it means to be SMART. Or, if you want to know more , just drop me a mail so I can expound on it.
Goals must be linked to your current situation as it will ensure you can really be sure you can make it.
For example, you are already in your senior years, say 55, and you think about having your retirement at 65 with 20 million pesos. This means you have 10 years to achieve your goal. So that gives you the WHEN in number of years. The next Question of HOW MUCH will come from your Net Worth calculations from your first step.
We also have to go through the X-curve analysis. This is simply a risk analysis of your current financial condition. This will tell us How Much and When to protect our family and to guarantee a financially free retirement.
Another tool to use is what we call the Solid Financial Foundation Checker. To be financially secured , we must be able to define How Much of the following critical components of our financial building blocks should we have: Basic Health-care (Long and Short Term) , Protection , Debt Management, Emergency Fund Build Up , and Investments.
That's all for now.
See you again tomorrow , and let's go through the steps to riches... together....
God bless!
Day 3
As a review, we talked about the first two steps earlier: assess your current situation, and set goals.
I promise to detail this further in the succeeding days to come.
for now let me tell you about the next step: create your plan...
Based on the first two steps, you will have a more intelligent way of defining a plan how to achieve your goal or goals.
There are many ways and means of achieving financial plans.
You either work actively on it, or create multiple streams of active incomes.
Another way of achieving your goals is to create multiple passive income streams.
A fourth way is to reduce your expense .
But, in my experience, the best way is to combine all the four ways for faster achievement of your dreams and goals.
In creating your plans, you have to define the specific actions you will take and it must be laden with data of how much and when to match up with your goals.
The first two steps are very very critical and must be done with diligence as the action plans will be anchored on it.
However, among all the steps to take, this step of creating your plans is the most critical, as this will define your success in achieving your goals.
Limp plans ... expect not so good results.... aggressive and passion filled plans will definitely get you to your dreams....
Again, I promise you, I will have more details on this in the coming days.
I just want to give you first the basic idea before I go to the details.
That's all for now.
See you later.
If you want to ask me a question or give your comment, just click an email to this address: richbenj.santiago@gmail.com.
God bless.
Day 4
Previously we covered the first 3 steps. step 1: assess your current situation, step 2: set goals, and step 3: create your plan...
In our free seminars, we will give you worksheets that will aid you in doing the above steps with ease. You can also get our wholehearted support in doing these steps which are the critical steps in achieving your goals... financial freedom.
After completing your plans, do not stop at that point... There are a lot of people in this world who gets tons and tons of ideas in their minds, fired up to think of doing something about their current situation, but sad to say just think about it.
Failure to act on it is the basic source of failure. It's not the absence of ideas, techniques but simply the ability to transform ideas to action.
I must say this is rooted on discipline. I define discipline as doing things you can avoid to do. Note the emphasis is doing. Acting on it or doing it even if others do not. Or acting on something which may inconvenience you at that moment.
In the news this time of writing are the 4 gallant Honor Guards who stood by the coffin of Tita Cory.
They motionlessly stood for more than 9 hours on top of the flat-bed truck non-stop without water and food and not relieving themselves of their physical needs.
Add to this the fact that the weather changes from sunny to rainy , and not only water rain them down but some coins and flowers into their face.
It's involuntary but they did it because they follow orders ... and of course because of big D... Discipline
So, with that said and done, it's much the same way with our Steps to Riches.
We need the Discipline to take Action. That is our fourth Step: act on it!
When we gone through the same process. Our major issue in our financial life is our debt and mortgages. I will detail this in a much later blog. This really required us to absorb a lot of vitamin D ( Discipline) in addressing this particular issue.
We also have to have an open mind and flexibility. Remember, the end point of all we are doing is not the completion of forms and written up plans. The end point is securing a solid financial foundation.
As we act on our plans, we must be able to continue to track and review our Cash Flow, our Net Worth, and our X-Curve Checker.
You maybe overloaded with terms I have mentioned that looks and sound Greek to you at this time. But do not worry, I will detail this much much more in the next blogs.
As usual, if you have anything to say or comment about this blog, pls feel free to do so and click me an email: richbenj.santiago@gmail.com.
I will be more than happy to respond to you!
God bless !
See you tomorrow....
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