Five Types of Goal-Setters

The New Year is coming and you're probably writing down your New Year's Resolution. The popular ones that people usually write about are love, health and diet to make them feel better about themselves, kicking out of a bad habit (smoking, drinking, stealing someone's belongings, etc.), and money (or anything related to it). You want to achieve these goals for the next year and pray to God (or Xenu, if you're that weird Scientology dude/troll I've argued over the internet) that it would happen unlike the previous years (and also the previous year, and the year after that, and also the last year also after that) where it never came to much fruition. Seriously, though, what really is the point of a New Year's resolution?

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For the formality of knowing that you can plan and be miserable by the end of the year knowing that you can't achieve it?

But before we jot down those words, let's evaluate ourselves first if what type of goal-setter we are. Here are the five types of goal-setters:

1. Obstacle Finder

Ever heard anyone (especially yourself) say these lines: "I can't do it because [insert excuse here]", I'm not going to invest my money because the market might go down", "I have lack of knowledge in [insert lack of knowledge here]", I don't have enough [insert money or abstract noun here] so I can't [insert New Year's resolution here]". Chances are you're focusing more on the obstacle rather than the goal, which would result to stupor inactivity that would lead to you not fulfilling your New Year's resolution.

2. Complainer

These are the goal-setters that like to play the blame game. They usually say something like this: "I'm poor because of the government and I can't do anything about it", "Corrupt politicians are the ones making us poor people poorer" while the complainer sits idle all day drinking beer, "I blame it on my parents because I was born poor" and more annoying banters you probably here from the drunk tambays sitting on the wooden bench of the sari-sari store near you. Although I agree that there are some external factors and people that can cause you to be dissuaded in achieving your goals, it all boils down to the internal factor if you'll let all the negativity sink in to your head and making your goals unattainable. Don't listen to the devil inside your head. Fight it.

3. The Goal-Watcher

Us Filipinos really have this habit of commenting "I'm proud to be Filipino!" on websites after knowing one of our kababayans achieved success internationally in singing competitions, sports, and others. Now, I love my country, sing the national anthem as patriotic as possible in the shower, and happy for the success of our kababayans, but adoration and pride-leeching of the success of others to the point where you consider it as your own is, ummm... for the lack of better term and euphemism "pitiful?". Or maybe I should use pathetic? Hey, am I being offensive now? Okay maybe I should stop. The point here is that focus on achieving your own goals rather than others. Manny Pacquiao wins another fight and you feel giddily excited about it, but does that get you closer to your goals? You're just satisfied that your friend who has now a successful business (that was something you wrote in your New Year's resolution also) while you sit there in stupor silence. If your goals relate to that person who found success, then why not use it as a source of inspiration for you to act upon and not just be smiling creepily and be lazy about it.

4. Mr./Ms. Planner

Imagine yourself writing your goals for this 2015 in a sheet of paper. You put down "I'm going to be rich." So you educate yourself in real estate, stock market, and even Forex.You have all that knowledge but you can't do it because [insert reason here]. The problem here is that you have all the plans set out and the sufficient education for you to do it, but you just can't execute it. You're just in the level of planning (hence the name Mr./Ms. Planner if you didn't get it right away). To put it short: Education without Execution! If you change that "without" to "with", then you become (see below).

5. Mr./Ms. Clarity

When you're this type of goal-setter, then, no doubt you have educated and acted on achieving your goals. You have practiced Wisdom not knowledge. Your chances of achieving your goals is higher than those of the other types. You set out a goal of investing one hundred thousand pesos in a year, and you do your best even through the struggles and hardships.

Now, which goal-setter are you? And which goal-setter would you rather be?

Post is inspired by Series 2 of The Wealth Academy.

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Solutions for your Debt

I posted Causes for Heavy Debt, now I'm going to post a dog eating a cat.

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"Helps me human!"

Oh, and solutions for your debt.

1) Create your Budget and STRICTLY follow it - "Well, duh. This is so freaking obvious." It might be but some people still lack the sense that seems common to you, imaginary-character-that-I-just-made-up-in-my-head. Don't go all spending your money the moment your pay day comes. Manage your money first so you won't have any problems in the future. If you don't, there's a high chance you will borrow money from a friend or get a loan because of lack of management. May I suggest having a jar system.

2) Simplify Your Lifestyle - spend below your needs. If you can't save some money anymore, try eliminating those expenses that are considered wants. Yes, daily visitations to J. Co. or Starbucks is wants. If you have needs that affect your savings, better find a cheaper alternative. You can survive without buying a sack of Ganador rice. 

3) Pay Off High Interest Rates - if you have multiple loans and debts, I suggest you pay off the ones that take a high interest charge like credit card debt. The reason is because high interest debts (or any interests for that matter) compound over time which reallllllllllllyyyyyy is a pain in the butt if it increases.

4) Don't Pay the Minimum - Speaking of credit card debt (or any other debt with interest for that matter,) don't pay the minimum, pay as high as you can. You're just going to prolong your debt if you don't which, again, compounds. This avoids the compounding interest that is working against you.

5) Stop Bringing Big Cash - imagine yourself walking in SM and you have Php 10,000 fresh from your ATM. You saw something that catches your eyes and you have the tendency to buy that thing. You will start reasoning with yourself that "it's okay I can earn the money again." So you bought it. Then, you came across your favorite restaurant. That little voice in your head then tells you to "go eat, you have lots of cash anyway." What you are not realizing is that you just disrupted your budget (if you have a budget) and bought things that you didn't plan to buy. If you have a small amount of money in your pocket, you would think twice in buying stuff.

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Causes of Heavy Debt

A lot of people don't realize these symptoms that can cause heavy debt. Sometimes, they do realize it but they just don't know any other way for their finances. Let's check if you have some of the dreaded symptoms of Heavy Debtitis.

1) Spend More than They Earn - a lot of people have the lifestyle of the rich but the salary of the poor. Too much nightlife,

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Not pictured: Social Interaction

eating out all the time, money for their sugar daddy/mommy, and going on a trip without a definite budget are just a number of the many reasons why people fall into heavy debt.

2) No Emergency Fund - I have already talked about emergency fund before here and here so I won't elaborate further more. What I will elaborate is how people fall into the debt trap without this fund.

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It's also a good trap for bears

When emergencies happen, most people's solution is getting a loan, and this is an emergency so it's not really something you have prepared. So, of course, your budget gets disrupted (IF you have a budget to begin with).

3) Instant Gratification - you know that feeling after you got your paycheck for the month and you decide to buy something, like a camera, smartphone, or lots and lots of chocolate as a reward for your hard work and you forgot (or not even thinking) that you have a problem to face in the future like healthcare when you're old, or tuition for the kids in college, or a retirement fund. Yeah, this is what I mean.

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Can't really blame you on the chocolate part

4) In Search for Recognition and Fame - you know that friend whose always buying new stuff like that new laptop he/she always brings, five smartphones which he/she just only uses one, that expensive iPad that has all the not free apps (also including the blender app for his/her milk shake),

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It's for bringing all the boys in the yard.

always going out of town even if he/she has no money, buys everyone food, throws a party every week just so he/she could feel important in the crowd. Everyone drools at this guy/gal. He/She looks well off. What you're not seeing is the underlying horrible debt that they're facing.

5) Compounding Interest is Working Against You - let me give you a brief definition of compounding interest first (I don't want to mash you with a lot of jargon). Compounding interest is the interest added to the principal of a deposit, investment or loan so that the added interest also earns interest from then on. If you invest this will work WITH you. If, however, you will get a loan, not pay your credit card debt for a long time, then Compounding Interest is your ENEMY! I'll show you an illustration using the power of 72 invented by my dear old friend Albert Einstein which determines the year your money doubles (if working with you) or divides into half (if working against you).

The power of 72 

The Power = 72

The example interest rate per annum = 60%

Your sample money = Php 100,000

72 / 60  = 1.2 years is when your money becomes half

so Php 100,000 after 1.2 year = Php 50,000

Php 50,000 after another 1.2 year = Php 25,000

Another 1.2 year and you would probably give your money a eulogy.

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"I remembered the days when my money was 100,000, but debt took his life."

6) Believe Debt is the ONLY Solution - this is a problem with a lot people who aren't financially educated. Can't buy food for your family? Solution: UTANG! Son was hospitalized because of an accident? Solution: UTANG! Can't pay children's college tuition fee because of unpreparedness? Solution: UTANG! Electric Bills are overdue? Solution: UTANG! And then the heavy debts bury you 6 feet below the ground.

If you have these problems, I suggest you consult yourself first (no, not a financial adviser). I believe that the best financial adviser is YOU. Evaluate yourself first and avoid these problems.  I'll post Solutions in another post.

Post was inspired by Series 7 of Wealth Academy's Debt Management. A seminar for mindsetting people to avoid debt and solving debt.

Want to attend the seminar? Know first about the company here and my realizations here after I attended the first seminar.

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5 Things to Have Before Investing

I know I told you in a last post that I'm going to teach you on how to invest; but before you do that, let's talk about the prerequisites of investing first.

1) Healthcare and Life Insurance - basically, this is for security purposes in case something happens to you. Know that this is not for you but for your family. You invested and suddenly died, your investment becomes funds for your funeral, paying off estate taxes, any existing debts, and other expenses that your family will face. If you have insurance as back up, your investment can be passed on to your family without them worrying about the high estate tax to get your investment. You get sick or hospitalized, your healthcare will come running for you to help.

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"Thanks healthcare and life insurance"

"No problem, bud. Just pay on time or will give you a fee if you don't."

And we know how expensive hospital bills are, especially if you live in a country where there is no free healthcare (at least the taxes aren't really high in the Philippines unlike some country with 50 States).

2) Emergency Funds - I have mentioned Emergency Funds in my previous post here and here. You probably get the idea based only on its name. If you don't, I'll give you a hint: It's for EMERGENCIES.

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Mind Blown!

Save up to 3-6 months worth of your monthly salary. In case emergencies do happen, you already have the money to pay and not use your investment as collateral. It just simply avoids put and take and your investment can enjoy the power of compounding interest.

3) A Goal - if you are one of many people that'll say "I'm going to invest because my money grows" then I'll ask you this question: "Your growing money for what?"

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"To grow even more money, me boy!"

A goal might sound obvious but there is amazingly a lot of people who invest that don't have a goal in mind. They just invest so their money can grow and think about their goals later on. The goal post is there, try and hit it.

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"I'm just here for decoration."

This also helps to avoid redeeming your money from anything that you just come up on a whim that you'd like to buy.

4) Zero Debt - if you have any existing debts my advice to you is simple: DON'T INVEST, YET! Better eliminate all of your debts first because if you have debts that gain interest over time, it will be a problem for you to pay it off and you'll have no choice but to take your investment out. "What if I have debts that have no interest?" Eliminate that also. You usually get that from friends or a 0% interest promo from some company or government agency like SSS's Calamity Loan. But of course, those with interest rate should be prioritized first. And I'm going to be biblical here: Romans 13:8 Let no debt remain outstanding, except the continuing debt to love one another, for he who loves his fellowman has fulfilled the law.

5) A Saver's Mindset - probably should have put this in the number one list, but I didn't really specify that this is in the order of importance, but, you know, this is really important than the others since it's going to involve your thoughts and emotions that lurks in the inner dwellings of your mind.

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The inner machinations of your mind are an enigma.

Internally, your emotions will be the one that you have to look out for, because all logic and reason disappear when that starts infecting your brain. And do not correct my choice of words. Your emotions can trigger bad habits that'll leave you emptying your pockets like shopping when your depressed as an example. Practice frugality and thriftiness. Make a point that after getting your salary, commission, royalty, or blood money you go save 20% of it.

I hope this helps! :)

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Why Your Savings Account is not Safe for Your Long Term Goals

I'll ask you this: Do you have dreams in the future? Like a car, a house, proper education for your kids in college, travel around the world, or a helicopter equipped with laser cannons and gatling guns.

Now, unless you won your dreams in a contest or someone really generous gave it to you, you will never get it instantly. You'll probably have to wait for years before you get the amount of money for your dreams. A lot of people would actually save that money in a savings account because it's "safer" than putting it in investments. I would agree that it is safe to put your money in a savings account ONLY if it's for your short-term goals (like a year or less). Now for long-term (5 years and more) and medium-term goals (3-5 years), and (I can't emphasize this enough) YOU WILL LOSE MONEY!

But why?

Well, subheader. I will tell you two enemies that will stand and hinder your finances.

First Enemy: Taxation

If you have a savings account, you are well aware of the 20% withholding tax looming in your bank account. If you don't have a savings account, seriously? You don't have one? Go get one now!

Of course, your savings account has interest (depends on the bank but it's usually around 1% or less) but that interest is deducted by that 20%. I'll show you an illustration which will involve me doing what I'm allergic in doing: MATH.

For example, you have Php 100,000 for your son's college tuition who's still in grade 6 and you put in a savings account with 1% interest per annum (for examples sake).

Php 100,000 x .01 = 1000

You have earned 1,000 pesos. Now let's tax it.
Php 1000 x .20 = 200
Php 1000 - 200 = 800
Php 100,000 + 800 = 100,800
That's what you've earned. Next comes the worst enemy of all.

Second Enemy: Inflation

Inflation (if you forgot about your Taxation class in college and Economics class in high school) is the increase of prices of goods and services in a given economy for a period of time. Basically the one responsible for the increase of prices in your favorite restaurant, why rice gets expensive over the years, and why a liter of coke 5 years ago was just 22 pesos but now it's 27.

How does this affect me?
Well, sub-header, if you must insist. I have to do MATH again.

Let's use Php 100,000 again, but this time with the inflation rate of 6% a year (based on the estimate of the Philippine's inflation rate for the last 10 years).

Php 100,000 x .06 = 6,000
Php 100,000 + 6,000 = 106,000
Now let's pair it with your money in your bank account.
Money in the bank after a year = Php 100,800
Money value of 100,000 after a year = Php 106,000

There is a large amount of discrepancy between the two in just a year. Your money's purchasing power (the value of a sum of money) lowers, and whatever you can buy with your 100,000 last year cannot be purchased this year.

If for example you want to buy a car but your money isn't enough yet so you save it for five years in the bank. What would happen in five years? (I have to do MATH again... sheesh.)

I'll just simplify the equation for this one so I won't include the deduction of tax.

1%-6%= -5%

Php 100,000 x -5% = -5,000
Php 100,000 - 5000 = 95,000 Purchasing power of your money in the first year.

Php 95,000 x -5% = -4,750
Php 95,000 - 4750 = 90,250 Purchasing power of your money in the second year.

Php 90,250 x -5% = -4,511
Php 90,250 - 4513 = 85,737 Purchasing power of your money in the third year

Php 85,737 x -5% = -4,287
Php 85,737 - 4,287 = 81,450 Purchasing power of your money in the fourth year

Php 81,450 x -5% =  -4,073
Php 81,450 - 4,073 = 77,377 Purchasing power of your money in the fifth year

Your money's purchasing power is deducted and won't be of no use for that new car that you really want, your kid's college education, your dream house, or that helicopter with laser cannons and gatling guns.

But what should I do?

Don't worry sub-header. There's a way. It's called INVESTMENT. On my next post I'll tell you about how to invest.

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5 Tips on Lessening Your Expenses

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1. Make a List before shopping - this will help you discipline yourself in buying stuff especially in groceries. Imagine yourself shopping: You stare at that large pack of potato chips and you know you want it. You could imagine it in your mouth. You're about to grab it--until you remembered you have a list. You scanned your list for potato chips and none appeared. Then you shout at the top of your lungs: "Stay away from me you delicious demon!" And you averted buying what's not on your list whilst everyone is staring at you uncomfortably. (Seriously, though, don't shout. You'll find yourself one less supermarket to go to. Trust me.)

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2. Use LED bulbs instead - LED bulbs might be expensive but they'll lower your electricity bill greatly especially if you have rooms in your house that you spend and use most of the lights on like the bedroom... where it's creepy and scary while dark.

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3. Walk as much as possible - walking is a great form of exercise and surely makes you fit (if you don't eat a lot of food after doing it, of course). If you're in IT Park and going to JY, you better walk (Just google map it if you're not familiar with places in Cebu). It's not really that far. I have walked from Gen. Maxilom Ave. to USC main without any problems (save for the part where I'm thinking about that cute girl that I saw while walking, which can be dangerous when you're crossing the road). You get exercise and you save on money. Win-win.

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4. Minimize eating out - I don't really need to tell you how expensive food is in a restaurant. Of course, there are some times that you will eat out. It's okay. As long as you don't do it ten times a month. Once or twice is okay. Or even better, don't eat out. If you have friends that pressure you to eat out all the time, find some new friends... or tell them that they've gone fat. That usually stops them... I think.

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5. Read books more, watch TV and play video games less - I'm not telling you to stop watching your favorite soap opera or stop playing online games, but try opening a book for a change. Books contain lots of useful knowledge. It'll also help you lessen your electricity bill since they don't run on electricity. You get to also appreciate the art of literature. And no, reading Twilight is not appreciating the art of literature. 

I'll give 5 more tips in the near future. I hope this helps.

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How Faith Helps You In Achieving What You Want

FAITH is the "external elixir" which gives life, power and action to the impulse of thought!

FAITH is the starting point of all accumulation of riches!

FAITH is the basis of all "miracles" and mysteries that cannot be analyzed by the rules of science!

FAITH is the only known antidote to FAILURE!

FAITH is the element, the "chemical" which, when mixed with prayer, gives one direct communication with Infinite Intelligence.

FAITH is the element that transforms the ordinary vibration of thought, created by finite mind of man, into the spiritual equivalent.

FAITH is the only agency through which the cosmic force of Infinite Intelligence can be  harnessed and used.

Source: p. 49-50 Think and Grow Rich by Napoleon Hill

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My Own Jar System

I actually came across the Jar System before I was even interested in finances... when I was in college... where my only financial problem was how to play DOTA in the internet cafe... where I was also flat out broke. College life without income to summarize it. What was I talking about? Oh yes, Jar System.

Jar system is a money management system that allocates your money on certain things. This was invented by T. Harv Eker and has been adopted by some local personalities like Miriam Quiambao and Bo Sanchez.

At first, the allocation of percentage seems to be off to me since it has a high percentage on the Wants and doesn't really include an Emergency Fund. So I decided to tweak it a bit that would emphasize more on attaining my financial freedom and also renamed it to The Seven Wealth Chest (because I love playing Role Playing Games and needed something that sounds cool and jars are just one sword swing away from breaking).

The Seven Wealth Chest

The Wealth Chest of Expenses (70% or less) - I actually just spend 50% or even less than my expenses in the house since I divide it with my sister (lucky me). The percentage will really depend on your lifestyle. If it exceeds 70%, I recommend to re-evaluate your expenses and live within or below your means. I'm not suggesting you live the lifestyle of a hobo but just take away what is unnecessary. Yes, softdrinks, eating in restaurants like 10 times a month, burning money are unnecessary. Lower some of your expenses like saving electricity for your electricity bill or take away your ice cream fund (do people have this or is it just me?)

The Wealth Chest of Financial Freedom (20%) - I recommend 20% (or more, if you can) since this will be allocated for your financial freedom which eliminates the burden of financial problems in the future and attaining your dreams like owning a mansion and a year supply of ice cream... or a mansion made out of a year's supply of ice cream. Better put these on Mutual Funds or in Stocks which the rate of return is high and you're also taking advantage of the power of compounding interest as years go by. You can also use this for a long term healthcare insurance which has an investment component for your healthcare needs when you retire.

The Wealth Chest of Emergency (5% or more)- this is allocated only for emergencies and in case you got fired from your work, you can pay off your expenses while unemployed and not worrying about praying for money to grow on trees. I recommend you save 3-6 months worth of your monthly salary. Put it in your savings account since it's quite liquid, meaning you can easily get it in case of emergencies.

The Wealth Chest of God (10% or more) - this is allocated for your tithes and charity (not your neighbor Charity...unless she really needs the help). Your tithes is a way of recognizing that whatever you have earned is because of God and you are just returning what belongs to Him. If you don't believe in any of it, then it's best you donate to some foundations, orphanages, or any humanitarian organization that you know of. It will make you feel really good inside. Like eating ice cream.

The Wealth Chest of Knowledge (5%) - this is allocated for your education to improve yourself and better equip you with knowledge usable for your everyday life. You can use this for books, seminars, getting a degree, or anything that provides you with the right education to what you want.

The Wealth Chest of Recreation (5%) - basically this is allocated for your enjoyment like watching movies, eating out with friends, go bowling, going to the beach, anything that your heart desires and relieves stress from work.

The Wealth Chest of Items and Travels (5%) -  this is especially allocated for the things you want. Like gadgets that you would want to buy like that new smartphone that you'll just probably use for playing Candy Crush, or a new sofa to sleep on in case you had a fight with your wife. You can also use this for the places you like to travel inside and outside the country.

You can set your own percentage or allocations for your money. The important thing here is that you are managing your money. I do recommend to strictly follow the percentage for the first four and lessen the percentage for the bottom three in case the needs dominate the wants. I hope this helps you.

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IMG and the Wealth Academy

One problem that I have with the Philippine education system is that we are not taught how to be financially literate. In college, we are only taught on how to be a good employee and after that... that's it. You're on your own, kid. We know how to work for the money but don't know how money works for us. Most of us learn our finances through our parents and majority of them will say that it's good to put your savings in the bank only and (the sad part) don't try to invest your money. Parents mean well when saying this but while putting your money in a bank account is good advice (but lacking), not investing is just a horrible advice to follow. We need to up the ante in our financial intelligence.

But why do we need to increase our financial intelligence?

Thank you sub-header for that question. And I'll answer that with one word: "Change".

Before: A parent could raise 10 children.
Today: The 10 children cannot raise a parent

Before: Only the father works and could raise 10 kids.
Today: Both husband and wife working can hardly raise 1 child.

Okay, I answered that with a lot of words. Any more questions?

Why is this happening?

Good question sub-header. Here are the following reasons why:

The rule of money is changing
People live longer today
People spend faster today
Technological Advances
Globalization - there is now a single world market of many goods and services. One globe is one market place.
The world is changing fast - a changing world requires changing solutions

Everything is changing around, except our financial strategy. Expect change to happen a lot faster than before. We need to know how to cope with the fast changing world.

Change bad. Need solution.

Fortunately for me, I was taught to be financially educated by this company:

What is IMG?

Very inquisitive of you sub-header.

IMG is the abbreviation of International Marketing Group. International Marketing Group is one of the few companies of its kind in the industry today - a marketing company that is dedicated to serving the financial needs of individuals and families from all walks of life.

International Marketing Group's independent associates do not just work with clients who have large amounts of discretionary income - instead they work with everyday people helping them make critical financial decisions that help move them from where they are to where they want to be.

International Marketing Group is one of the biggest and fastest growing financial distribution companies in the US, Canada, Taiwan, Hong Kong, Philippines and going worldwide. IMG has established agreements with many of the world’s leading financial services companies to provide us a broad array of financial products & services. IMG will help you comply accreditation and licensing requirement of all its Product Provider Companies. Multiple companies (Multiple products) will help you get the best product...Best service ... Highest Rate Of Return.... Diversify investments, etc. And I did not copy-paste that from the IMG Website.

IMG holds a number of seminars for your Financial Knowledge and it is conducted by this academy:

The Wealth Academy is where IMG teaches you about Finances. Topics like financial management, debt management etc. can be learned all for free.

Here are some topics you'll learn if you attend series 1 titled Practical Money Management:
*The X-Curve Concept
* How to Build a Solid Financial Foundation
* The Six Steps to Financial Freedom

* How Money Works? The Rule of Money

* Investment Strategies

* Making Millions with Php 1,000/month investment

Here are some topics that you'll learn if you attend series 2 titled Financial Planning and Goal Setting Workshop:

* Types of Goal-Setters

* What Financial Stage Are You in?

* Powerful Strategies to Achieve Your Financial Goals

* How to Increase Your Cash Flow

* How to Have a Total Financial Peace of Mind

* How to Become Your Own Financial Expert

The Higher Series (3-30) Comprehensive Approach to Personal & Financial Strategies includes:

* The Spiritual Side of Money
* Getting Out of the Heavy Trap
* What it Takes to be Great
* Winning Big in Life
* The Real Foundation in Building Wealth
* General Concepts of Investment
* Financial Diagnosis, Treatment
* Become your own Financial Advisor
* Estate Planning etc.

Series 1 and Series 2 are free, but the higher series (which are still free, by the way) are for members only. We do have promos that lets non-members participate in the higher series but you must have attended Series 1 first (We'll update you on this one).

The first seminar lasts about 2 hours and takes place in the following places:
 Makati City, Metro Manila
 Cebu City, Cebu
 Davao City, Davao
 Iloilo City, Iloilo
 Tacloban City, Leyte
 General Santos City, South Cotabato
 Iligan City, Lanao Del Norte
 Cagayan De Oro City, Misamis Oriental

If you are outside the Philippines, we have offices in the following countries:
 Singapore
 Hong Kong
 United Arab Emirates
 Qatar
 France

If there is no IMG office near your area, we can contact our friends in your area to give you a friendly visit or you can also join in our webinars at gotomeeting.com. 

If you are interested in attending the seminars or webinars then please fill out the form below.

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Financially Taught by IMG

Appropriately, my first post would be related to the company called International Marketing Group and its Wealth Academy since they made me gain interest and knowledge about finances. But before I introduce to you this company, I would like to tell about myself first on how I started my journey to financial freedom.

When I was fresh out of college and into to the unemployment line, I asked myself this question: "How do I make my money into a million?"

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I was thinking about it, then I realized I suck at Chemistry

I was thinking, if I had a salary of Php 10,000 a month, then I would be earning Php 120,000 a year. But then again, I can't have all of that money because I have to spend it for expenses, emergencies (in case the need arises,) and the things I want.

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Things I want

If I would have to deduct my yearly salary, I would probably just have more or less 25,000 left. If I add that every year, I would reach a million pesos around 40 years.

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40 years later

I wanted that time span to shorten to at least 10 years. I thought about having a business,  but I don't have the brains and the skills to confidently handle one, yet. I thought about investing, but, again, no knowledge on how to do it. Then, God sent me an angel armed with a survey form and the gift that could answer my queries. (And the angel is probably laughing... or embarrassed... or whatever as she reads this post.)

She invited me to a seminar on Saturdays. Eager and thinking I had nothing better to do on a Saturday night, I gladly went to the seminar. When I was on my way to the 2nd floor of JY Square (its location in Cebu), my thoughts were shifting between eagerness and doubting of what I'm about to do.

Eager thoughts:  My feeble brain will learn something about investment today. My questions will probably be answered. Investment, investment and investment.

Doubts: Is this another networking company? The seminar is for free. What's the catch? Are they going to sell me anything?

When I finally sat and listened (while the aircon was gradually freezing me to death), my eager thoughts and my doubts about finances and the company were answered, corrected, and disproved greatly. I could tell you a lot, but I'll just stick to the ones that really impacted me and also answer the doubts.

Definitely not scanned

That picture right up there showed me the error of my ways in investing and finances. I was only thinking about investing but didn't really thought about my health, my mortality, and my money allocated for an emergency fund. So here are my different realizations on each step.

(Note: I left out eliminating debt because I don't really have one to begin with and I am not really into loans--unless it is used as an asset--and credit cards which you have to pay big interest. But I will tell you how to eliminate debt in a future posts, because, you know, it's helpful.)

Healthcare

If I just started investing and without any healthcare, then where would I get the money for my medical needs? My savings account? Most probably, but there's a high chance that my savings would deplete from all the health expenses like say for example recovering serious injuries from a vehicular accident (not including repair expenses). Where do I get the money now? My investment? That would be the next scenario and there is a high chance when I claim it, I will be losing money than I initially invested. If I don't have an investment, I could ask for my friends to lend me some money but I'm gaining debt. In which I have learned in IMG, should be zero as much as possible. Healthcare is very essential in avoiding those expenses.

Life Insurance

I was thinking too much about gaining money that I forgot about the probability of me dying while I earn said money. I wasn't designed to be immortal and neither are the rest of the people of this planet (unless you are, then I apologize for the overgeneralization.) If I died without any insurance, what will happen to my family? If I had wife and kids, I would be worried about what will happen to them especially if I'm the only provider. If I had debts, then all of that burden will be passed on to the family that I left. I don't want to be a burden, and I certainly won't let that happen.

What would happen if I had life insurance?

For example, if I just recently bought life insurance for Php 10,000 and also invested another Php 10,000 on investments and died because I slipped on a banana peel, then tripped and dunked on a pool of chemicals which evidently is my COD (which disappoints me in the afterlife because of not having superpowers) the next day, the scenario would be is that my investment will give my family back the Php 10,000, but my insurance will give my family Php 2,000,000 (depends really on the insurance premium that you bought.)
You don't have to worry about not providing your family anymore in case something tragic happens. (You should also educate your spouse or your parents or sibling/s about finances. You know, in case they're your beneficiaries at least they know how to use that money).

Emergency Fund

An Emergency Fund is mainly used for the purpose of emergencies (duh?) like a fire burning down your house, a storm destroying your property, your car or motorcycle needs repairing after an accident (the following examples can be excluded if you have non-life insurance), or a recent termination from work which renders you to unable to pay for your expenses because of lack of income.

Before I learned about emergency fund, I did have an emergency fund but the problem with it is that it was also my "Wants Fund". If I wanted to buy something like say a new smartphone, then my emergency fund would be sacrificed. And if my house suddenly starts burning, I would be in a real conundrum. I separated the two, and always disciplined myself not to use my emergency fund for non-emergencies like an emergency sale in the mall as an example.

Investment

Now that I learned about the necessities before investing, it's time for the part where I was so eager about in the beginning and was answered. I get to learn about Mutual Funds and the investment strategy of Peso Cost Averaging which lowers the volatility of investing. (I won't divulge much in this post but I'll write another posts just for this... and I can't cram everything in one post.)

My Doubts Disproved

Q: Is this another networking company?
A: Definitely not. IMG is a financial distribution company which caters to peoples financial needs. The Wealth Academy provides free seminars that can really help you in your financial knowledge. And, also, I'm not a big fan of networking. The part where they say it's a get rich quick scheme and you can do it in your spare time really dissuades me from joining because it's not true. Better read it from Mr. Fitz Villafuerte for an unbiased outlook on networking here.

Q: The seminar is free. What's the catch?
A: No catch. Just listen attentively to the seminar and evaluate what you have learned. Better judge after the seminar, not before. (If you're just gonna spurt something negative without even knowing and attending, you really should check about that pessimistic attitude of yours.)

Q: Are they going to sell me anything?
A: I got home without any products bought. The only thing I got was the realization that I have low financial IQ and definitely should increase it. IMG does have products from legit and respectable companies (Philamlife, Philequity, SMDC, Malayan, etc.) but is not the focus of the seminar. You came their to know about finances, you'll learn finances.

Q: Is it a scam?
A: 100% nope. You see, one way how I check if a company is legit is by going to the Securities and Exchange Commission website www.sec.gov.ph and look at the list of companies that are registered (try searching International Marketing Group, or any investment or insurance company that you know of as a trial). If it is not found, you better stay away from that company. (I'll give more additional information on how to know if a company is a scam.)

On my next post, I will tell you what IMG is all about.

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