Clueless Money Man

make it automatic

2009-05-02T16:49:00.000-07:00

I am not as discipline as you think I am. I hate budgets and I don't like sticking to it. I am not a details guy. I still don't know the exact amount of our expenses. But one thing I do practice that has save us and brought us to a place nearer to our financial freedom is what David Bach, author of Smart Couples Finish Rich, "MAKING IT AUTOMATIC"

We have created an automatic system that sets aside all our obligations to MR. FINANCIAL FREEDOM every payday. I am currently using the BPI SAVE UP system that automatically sets aside a portion of my earnings every month.

So example: I earn P200,000 (how I wish). I enroll in BPI save up and program it to set aside P25,000 a month. I am left with P175,000 to spend and do whatever I want with my money.

At the end of the year I have P300,000.

Imagine having an automatic system for the next 40 years before your retirement?

finish what you started

2009-05-01T04:40:00.000-07:00

To review Dave Ramsey's Baby Steps....

Baby Step 1: Save P50,000
Baby Step 2: Pay off your debt

Now here is the next step.

Baby step 3: Finish your Emergency Fund

If you have finished baby step1 and 2 it means you already developed the habit of saving. Baby step 3 would be easier for you now.

A complete emergency fund covers 3 to 6 months of living expenses.

Why do we put so much effort in finishing the EMERGENCY FUND.

FACT of LIFE: It will rain one day. The question is have you stored anything for it.

78% of us will experience an EMERGENCY within the next 10 years.

So you could either do two things:

Pray that you are the blessed 22% (w/c I am praying for as well)
or
Pray and prepare when it comes.

Most of our friends who have stored wealth experience greater wealth in rainy seasons. Because those who have the money can take advantage of the dip in economy.

That is why FINISH what you STARTED.

how to pay off your debt

2009-04-23T23:24:00.001-07:00

Here is how to pay off your debt:

1. List all your debts in order of the smallest to largest balance. Yup even your sari sari store debts. All means all. Debts from your relatives, friends, 0% interest debts, ALL.

2. Pay off the small debts first, then the big debts. Why? Dave Ramsey said that finance is 80% behavior, 20% knowledge. We want to start modifying your behavior. Once you get small wins you get excited to tackle the bigger ones.

3. Put all extra income into paying off those debts. Tips, salary raise, gifts - ALL!

4. Keep paying the minimum on all debts except the smallest debt. Attack on all sides!

¶ My son, if you have put up security for your neighbor, if you have struck hands in pledge for another, Proverbs 6:1 Free yourself, like a gazelle from the hand of the hunter, like a bird from the snare of the fowler. Proverbs 6:5

highly recommend Chinkee Tan's book "Till Debt do us Part" available at National Bookstore or at this site.

identify your enemy

2009-04-23T23:14:00.000-07:00

I once attended a seminar on sales and the main lesson I got from the 5 day seminar was "NEVER LOSE CONTROL"

This simple applies to our financial life. One of the biggest enemy people have is that money controlled them and not them controlling the money.

We must tell our money what they must do, not money telling us what to do. Because if money starts taking control you will get into some BIG DEBT.

I made a bad decision last year. I purchased a car that i can't fully pay. So for 12 months last year, we had to adjust our expenses because I was too haste in making a purchase.

I felt like there was nothing I can do or buy because we were always exact or sometimes even negative in our finances.

So imagine the thrill of finishing that payment. It is easy to become wealthy if you don't have any payments, right?

That is why my advice: Get out of DEBT!!!! It is your ENEMY!

haven't been blogging money stuff

2009-04-16T11:03:00.000-07:00

less blogs doesn't mean less money!

we are on our way to financial freedom!

taking the baby steps suggested in my blogs and Dave Ramsey's book has totally changed how we live and spend.

it takes sacrifice to secure a better future.

we have just finished paying off our car, we have completed our 5 year insurance payment and we are raring to look for opportunities to invest right now!

For those who are interested to live financially free I highly recommend

1. TOTAL MONEY MAKEOVER
2. SMART COUPLES FINISH RICH
3 MONEY DOESNT GROW ON TREES
4. SUZE ORMAN'S BOOKS

AND TO CONSULT A GOOD FINANCIAL PLANNER (RFP)

1. MY GOOD FRIEND AND FINANCIAL COACH RANDELL TIONGSON. ( i am not paid to endorse him!!!!)

why i cant trust my money

2009-03-24T15:58:00.000-07:00

Whoever trusts in his riches will fall, but the righteous will thrive like a green leaf. Proverbs 11:28

my own confession

2009-03-07T00:44:00.001-08:00

Randell - my financial coach, made his confession. it's my turn.

This morning my wife ask for grocery money. I said I don't have money to give her.

ARE WE BROKE?

NO!!!! we are not. But you hate the feeling that you can't easily give the grocery money she asks of you. it was not a want, it was a basic need.

Not that I don't have grocery money but I want to check the list our cook gave us. Money does not grow on trees. Our cook does not understand that.

But I still hate the feeling of not giving the GROCERY money.

So I check our financial situation.

We are not financially healthy. I hate the feeling again!!!
But we are not financially broke. But you still hate that feeling!!!

I made dumb investments 2 years ago that could have easily made my day better because I can give the GROCERY money!!! I hate the feeling!!!

I told my wife - let's cut cost. Check what we really need. Give me one more month. (Don't you feel for me now?!)

Why one more month?

Here's why.

1. We are finishing up our last payment this month for our seed RETIREMENT FUND which is quite a hefty sum that would be deducted from our monthly expenses.

2. We are finishing up this month our dollar investment that I made 5 years ago. That's minus our monthly expense as well.

3. We just finished last month our car payments (paid without any interest). We got a good deal from our friend.

That is where the money is going lately but we have been faithful and we are continually practicing putting our small savings into our retirement baskets and investment baskets.

IF YOU WILL LIVE LIKE NO ONE ELSE, LATER YOU CAN LIVE LIKE NO ONE ELSE!!!

Don't you just love that feeling.....

confessions of a financial planner

2009-02-25T23:59:00.000-08:00

My finance coach Randell Tiongson sent me this letter. Thought it would be good to post it here (with his permission). Randell is a sought after Financial Speaker and Planner. He also looks good everytime he wears his green scarf. Anyway read on...

My wife Mia and I went on a date last night. Since my wife loves to watch movies and the secret to a happy life is a happy wife, I instinctively knew that she would prefer watching a movie. I thought my wife would prefer watching the John Lloyd – Sarah Geronimo movie so I was trying to psyche myself already but I was so delighted to find out she wanted to watch something else. My wife knew I’m not a big fan of those movies so she was wanted to watch something else for my sake, that’s one of the many reasons I love my wife so much – so unselfish! Not wanting to be a total jerk by asking her to watch an action movie, I suggested to meet half way. As a result, we ended up watching the movie “Confessions of a Shopaholic”. I was actually intrigued by it because my daughter Gabbie said it was a great movie while my daughter Billie liked the book.

How was the movie? It was awesome! In fact, I recommend everyone reading this to watch the movie. Watching the movie is like attending a financial literacy seminar, only more amusing, more relevant and actually more effective. The plot revolves around a character name Rebecca Bloomwood (brilliantly portrayed by Isla Fisher) who has an exaggerated spending problem and ended up being a columnist for a personal finance magazine. The main character represented many of us, albeit in a humorously exaggerated way. We live in a society that is afflicted with a debilitating disease called ‘consumerism’. This burden has manifested itself to a ‘spending problem’ resulting many of us to live a life of debt – a life that robs us from experiencing a life of true freedom and a life of victory.

As a financial planner myself, I was endeared with the character in the movie. Her column gives out a lot of practical and great personal advice and has a lot of followers, despite her financial life being in complete havoc. Well, I wouldn’t say I’m exactly like Ms. Bloomfield in the sense that I don’t really have a shopping addiction and I’m not too sure if I do have many followers. While my financial life is not in havoc, it is far from being ideal. Many times, I find myself ‘preaching’ to myself whenever I write or speak. It’s not very wise for someone like me to say that I don’t have an ‘ideal’ financial life but I want people to know that I too experience the difficulties of putting my financial life in order. I went through a lot of mistakes that I have been trying to rectify. I was also afflicted with a spending problem that nearly left me in ruins. I made so much mistakes I later on regretted which I wrote about in this column many months ago. But… I learned from those mistakes and I am in a very long process of rectification. What is crucial is the realization of one’s problem and the resolution to learn from them, and have a lasting solution for them.

I do not only write or speak from a theoretical view, I am writing from painful personal experiences. We can’t ‘undo’ many things we have done, but it doesn’t matter anymore as what’s done is done. Like anything in our lives, we must learn to stand when we fall, rise when we stumble. In doing so, we become more resilient, stronger and most importantly, wiser.

Here’s a wise advice – to really fix a problem, go to the source of the problem. When I found myself with a financial burden, I tried many ways to ‘fix’ them but I noticed that while some of those remedies may work, most of them do not permanently solve the problem. Like many ‘solutions’ we concoct of, I found myself applying mostly short term or ‘band-aid’ solutions. If we have a financial problem or a spending problem, we should determine the root cause of the problem. Is it the lack of income or the way we spend? Why do we spend the way we spend? In my case, I got into a financial mess because I had a ‘want’ issue: I wanted this, I wanted that. It wasn’t just for me, it was for my family too... but it was a ‘want’ problem nonetheless. Over the years, my ‘wants’ became bigger and bigger and I found myself doing everything just so I can satisfy my ‘wants’. It didn’t really feel wrong at that time, in fact some people might even say that it helped motivate me to work harder and harder. In retrospect, I now know it was very foolish of me not to have stopped my insatiable desire to want more and more. I am glad that I came into my senses and was able to curb my ‘want’ issues. I guess those desires are still there as I am only human but I have developed a strong will power to overcome them.

How was I able to overcome my weaknesses? Simple. I merely re-examined what is really important in my life. Do I want to impress others because of what I have… or do I want others pleased with me because of my character? Do I want to please my family with a life that I can hardly afford and as a result become a pre-occupied husband or father… or do I want my family to be pleased with me because I am a real and approachable head of the family for them, always there when they need me? Do I want people to listen to me because of what I have accomplished… or do I want people to have hope that they can have a good future by learning from the mistakes that I chose not to hide?

In the end, I chose what really was more important. I chose to have a meaningful relationship with what really is important in my life -- my family and my savior, Jesus Christ. In doing so, I found a permanent solution to my deeply rooted ‘want’ problems – the cause of my financial fall.

I fell down, I stood up but I know I’ll fall down again – all these happen because God is molding something that is very important in me, my character. “…but we also rejoice in our sufferings, because we know that suffering produces perseverance; perseverance, character; and character, hope.” – Romans 5:3-4 (NIV). Our character will determine our future, even our financial future.

These are my confessions.

* J. Randell Tiongson is Personal Finance Coach & Educator and the President and COO of Personal Finance Advisers Philippines Corporation. He is a director of the Registered Financial Planning Institute Philippines and has been engaged in the various facets of the Financial Services Industry for two decades. He is also the co-founder of www.income-tacts.com, an inter-active site dedicated to the financial literacy of every Pinoy. For inquiries on training, speaking engagements financial planning and consultancy, you may send an e-mail to randellt@gmail.com.

BABY STEPS

2009-02-20T00:07:00.000-08:00

Alright, I have finally reached a thousand hits on my site. You might be one of those regular visitors wanting to find out how do I become financially free. To make it easy for everyone to be financially free, you have to understand baby steps.

I have a one year old daughter who is currently trying to walk. We call that a BABY STEP. Little steps we take so we could start walking to financial freedom.

The principles and practices that I'll share to you are taken from 2 of my favorite financial book:

1. Dave Ramsey's Total Money Makeover ( I still have 3 copies left, selling it for P700 only)
2. Dave Ramsey's Financial Peace ( I still have 3 copies left, selling it for P600)

ps: I am not earning from this book..... just fyi, it is like a giveaway.

The secret to Baby steps is FOCUS. One step at a time. Don't hit all your goals at once. We first want to develop your behavior.

Here is BABY STEP 1: Save P50,000.

Wow, you might say that's big! Trust me it's not. Just learn and live this word: BUDGET.

I don't have much but I do have a budget. My budget calms me down when I have emergencies. My budget calms me down when my car suddenly breaks down.

Why? Because I've learned to budget the unseen.

People who win at anything have written goals. Zig Ziglar says "If you aim at nothing you will hit it every time."

¶ “Suppose one of you wants to build a tower. Will he not first sit down and estimate the cost to see if he has enough money to complete it?
Luke 14:28

What makes a good budget? Click here

click here for BUDGET FORMS

are we really rich or poor?

2009-02-18T18:12:00.000-08:00

Ok Filipino friends the LOTTO pot is now a whopping P260,000,000.

a CHANCE in a lifetime for ONE of us to be rich.

ONE LUCKY GUY= P260 MILLION PESOS

But here is the problem. As of Sunday ticket sales reached P170,000,000.

Our poor third world country just spend collectively P170 million pesos to buy CHANCE.

A CHANCE FOR ONE LUCKY PERSON.

Is it worth to spend hundreds of millions to finance one lucky guy.

BAD FINANCIAL DECISION.

so are we really poor? or are we rich?

money and ministry by steve murrell

2009-02-06T07:37:00.000-08:00

A few months ago, I was asked to talk to 150 of our Victory and Every Nation staff members about budgeting and money at our annual Manila planning meeting.

After telling old stories, I mentioned 6 principles and attitudes that have guided the way we have raised, managed, spent and accounted for money at Victory-Philippines for the past 25 years.

1. Faith – God is our source. Always has been, even when the church was small and poor, and our offerings were heavy (all coins, no paper).

2. Stewardship – God owns it all, and we will give an account to Him for how we raise, manage, spend and account for His money.

3. Generosity – We give our best to our missionaries our staff, and to the poor in our congregations and those we serve through the Real Life Foundation and other compassion ministries.

4. Integrity – How we raise, manage, spend and account for ministry money is important to God, and to people. Our goal has always been to raise and spend money in ways that honor God.

5. Professionalism – Churches and ministries should live by the highest professional standards. We hire the best to do our external audits, and we have made it clear to them that we want to be held to the highest standards, not to the barely-get-by the law standard.

6. Wisdom – I am fortunate to have smart people around me I can ask for help with negotiations, contracts, investments, legal issues and other financial matters that pastors are not trained to handle. (Lost a key adviser last week.)

What guides you as you manage God's money?

are you doing something about it?

2009-02-06T02:13:00.001-08:00

Is nothing happening to you financially?

Maybe you have read tons of financial books, all offering great principles and advices. And you still say, how come nothing is happening.

Let me answer with a question:

ARE YOU DOING SOMETHING ABOUT THE
THINGS YOU'VE LEARNED?

Anyway that was what God told me late last year. Was wondering if it applies to you as well.

not drinking your favorite drink would make you rich

2009-01-30T18:04:00.000-08:00

What do you usually drink everyday?

Ice Tea, C2, Starbucks coffee! Do you know not drinking them would make you richer.

Let's do the math again:

C2 usually cost P20. Let's say you drink one bottle everyday.

P20 x 30 days = P600 a month.

Multiply it by 12 months

600 x 12 = P7200

Wow, that is a monthly salary of some of the people I know.

How about Starbucks coffee? How much is a GRANDE coffee? 130 pesos

P130 x 30 days = P3900 x 12 months = P46,800

If you put that money that gives you an annual return of 10% you will be a millionaire by the time you retire.

ps: I do drink Starbucks and C2 but not everyday.

you do the math

2009-01-28T22:35:00.000-08:00

taken from Dave Ramsey's "TOTAL MONEY MAKEOVER"

A new $28,000 car will lose about $17000 of value in the first four years you own it. To get the same result, you could toss a $100 bill out the window once a week during your commute.

For my Filipino friends

A car worth P1.4 million pesos will lose about P850,000 of value in the first four years you own it. To get the same result you could toss P1,000 pesos a day every week except on Sundays during your commute.

What do i do then:

Get the P850,000 and invest it somewhere that might give me 10% annual return. At the end of 4 years you would have an accumulative income of at least P1,244,350

clueless' recommendation

2009-01-26T21:32:00.001-08:00

I'd like to invite all of you to check out http://www.income-tacts.com/ -- it is the country's Personal Finance On-line community dedicated to the financial education of every Pinoy!

Income-Tacts has been on the web for a little over a year and it has over 2,000 members already. It is probably the country's most comprehensive personal finance related site with a roster of the country's leading experts on their field... namely, Efren Ll. Cruz, Francis Kong, Chinkee Tan, Jim Sarmiento, Atty. Carlo Carino, Atty. Caloy Ocampo and Randell Tiongson.

You can go through over 2000 topics all pertaining to living a life of victory in the financial arena of your life.

This site is 100% FREE!

myth series 2

2009-01-24T23:12:00.000-08:00

MYTH 2: IF YOU LOVE YOUR FAMILY AND FRIENDS, LOAN MONEY TO THEM, CO-SIGN WITH THEM.

TRUTH 2: THE BEST WAY TO STRAIN A RELATIONSHIP IS TO LEND, COSIGN OR LOAN MONEY TO YOUR FAMILY AND FRIENDS.

Reality is it takes as small as P5,000 to destroy a relationship. When the Bible says that the Borrower is servant to the lender - it is VERY SERIOUS.

Anyone who owes money to someone no matter how small has taken the place of a servant. I have relatives who are now in deep DEBT because they co signed a loan. They guaranteed something they can't really guarantee.

Proverbs 17:18 (Contemporary English Version)

18It's stupid to guarantee someone else's loan.

Rarely would God use the word STUPID. It says a lot!!!

the MYTH SERIES

2009-01-24T22:29:00.000-08:00

I will be blogging some money myths for this week. Some of us might be living the myth and has led us to financial stress. So hopefully this next series of blogs helps shatter the money myth we've all grown up believing.

MYTH 1: DEBT IS A LEVERAGE WE CAN USE TO OUR ADVANTAGE

Ever experience thinking to yourself to use your credit card so as to give you more time to earn what you don't have when you purchase a certain thing. We thought CREDIT or DEBT is an advantage to us.

TRUTH 1: MOST PEOPLE CAN'T PAY OFF THE DEBT THEY HAVE INCURRED. MOST WEALTHY PEOPLE DON'T GET INTO DEBT.

Debt brings more disadvantages than advantages.

"DEBT BRINGS ON ENOUGH RISK TO OFFSET ANY ADVANTAGE THAT CAN BE GAINED THROUGH LEVERAGE OF DEBT." - DAVE RAMSEY

The rich rule over the poor, and the borrower is servant to the lender. Proverbs 22:7

guest blogger, Thammie Sy - the original money woman

2009-01-24T08:04:00.000-08:00

JUST BECAUSE YOU'RE GENEROUS

...doesn't mean you're a good steward.

BUT,

if you are a good steward, it is inevitable that you become generous.

opportunity cost

2009-01-21T18:45:00.000-08:00

In any purchase I make especially purchases that would require me to shell out more than P10,000 pesos, one of the things I ask is WHAT WOULD BE THE OPPORTUNITY COST of this purchase.

During the 90's my dad purchased a VOLVO CAR, his dream car. The car cost around 1 million pesos. A huge amount for a car in the 90's. There was nothing wrong with his purchase. He could afford it but it would have been wiser if he had asked the opportunity cost of the car first before buying it.

What do I mean?

He had 2 options with his 1 million pesos.

Option 1: Buy the car.
Option 2: Invest it in a mutual fund that would earn at least 10% per annum.

What would have happened to his 1 million.

3 weeks ago I got a call from my dad telling me to help him sell his VOLVO car. I said how much? He said P250,000.

Option 1: WOW, in ten years time the 1 million pesos depreciated in value. P750,000 less of its value.

Option 2: If my dad put his 1 million in a mutual fund that earns more or less 10% per annum compounded annually he would have had 2.5 + million pesos. An increased value of more than 140 -150% in 10 years time.

So before purchasing anything, ask what would be the opportunity cost of this purchase and THINK HARD!

making of a financial crisis

2009-01-21T17:38:00.000-08:00

How do we get into a financial crisis?

I was having a late dinner with my friends in church when the issue of money and spending came up the table. I have seen for the past year a lot of people going through a financial crisis. Most of them don't know how it happened. It just did.

So how did it happen?

ONE PESO AT A TIME.

If your income (money in) is lower than your expense (money out) = financial trouble.

ex: You earn P25,000 a month. That's your money in. Then you spend P28,000 monthly. That means you have P3000 liability every month.

P3000 x 12 months = P36,000.

If these goes on for 3 years

P36,000 x 3 years = P108,000 not counting the interest that you incur with the debts you made.

SOLUTION:

1. Downgrade your lifestyle. Cut cost in some of your expenses.

or

2. Earn More.

MONEY IN MUST ALWAYS BE
BIGGER THAN MONEY OUT.

denial

2009-01-12T23:31:00.000-08:00

One thing I experienced when i was not in good financial shape was that I had the tendency to deny my present situation. Just like in any problem, we must first admit that we have a problem. Don't make some crappy excuse that you are going to be fine. I made that mistake.

Without careful and well planned financial direction - you will one day find yourself denying the fact that you are broke. It takes humility to admit. Learn to swallow your pride and face the music.

Being broke doesn't mean it's the end. It is the beginning. A journey to get out of debt, start saving and investing and living financially free.

One of my friends had a debt of 30 million pesos. He was just 30 years old when this happened. For five years he had to swallow his pride. He sold his cars, faced his creditors, humbled himself and worked really hard. He now has two jobs, juggles his time with his work and his family. He is on his way to financial freedom. This year his prayer is to be debt free.

Quit denying, be humble, cost cut, sacrifice, practice delayed gratification, start planning.

Face the fact: YOU ARE BROKE!

finance one liners

2009-01-12T06:55:00.000-08:00

1. Live like no one else, someday you will live like no one else

2. Money is a good slave but a bad master.

3. A coin a day will build a house someday

4. Cash is King.

5. It's not how much you earn, its how much you save.

6. Love of money is the root of all evil.

7. Don't put your eggs in one basket, diversify.

8. If the investment is too good to be true, then it is too good to be true.

9. You cannot serve both God and money.

10. It is God who has given us the ability to produce wealth - Deut 28:18

be financially free in 2009

2009-01-09T07:15:00.000-08:00

This is a good new year's resolution or faith goal for those who are starting to build their finances this year. i got this from Dave Ramsey's book "Total Money Makeover" which I first read before I married my wife. It totally changed me and i want to share the baby steps you have to make to be financially free.

Baby Step 1: Save P50,000 fast.
Baby Step 2: Start the Debt Snowball. Start paying off your debts.
Baby Step 3: Finish the Emergency Fund
Baby Step 4: Invest 15% of your income in retirement
Baby Step 5: Save for College
Baby Step 6: Pay off your Home Mortagage
Baby Step 7: Build Wealth

Now, as much as I want to blog everything written in the book to help you I have a better idea. As a New Year's gift to my friends in blogsphere, I am selling this book at 60%off its original price. I saw the book at National Bookstore and it was selling at P1700. But since its New Year and I want to help you out in achieving your FINANCIAL freedom I am selling my last few copies of DAVE RAMSEY'S TOTAL MONEY MAKEOVER FOR ONLY P700. If interested just leave me a message and I'll be glad to ship them to you for free. This is valid for Metro Manila only unless you are willing to pay for the shipping.

the blessing

2009-01-04T09:34:00.000-08:00

The blessing of the LORD brings wealth, and he adds no trouble to it. Proverbs 10:22

This is going to be my 2009 verse.

The blessing of the Lord brings wealth. In KJV, it says "The blessing of the Lord it maketh me rich. It sounds good but I don't want just to sound good. I want to experience the blessing of the Lord this year.

When the Lord blesses, He adds no trouble to it.

Another great news. No trouble, no sorrows to the blessings of the Lord.

It means it's tax free!!! Hahaha!!!

How do I experience the blessing of the Lord. Simple: PUT GOD FIRST.

But seek first his kingdom and his righteousness, and all these things will be given to you as well. Matthew 6:33

Surviving 2009, Randell Tiongson, RFP

2009-01-04T09:31:00.000-08:00

Gloom, gloom, gloom. Unless you are living in a place that has no way of communicating with the outside world, you are probably concerned for the future… the immediate future.

So what’s going on really? Let’s try to recap. The sub-prime mess has taken a toll on the world’s largest and highly rated financial institutions, bail-outs that doesn’t seem to work, reports of recession for first world countries, reduction of economic growth forecasts for Asia, mass lay-offs, companies closing down, stock markets crashing, talks of debt defaults, and many more. To make matters worse, there were civil & political disturbances in India & Thailand – exciting times indeed. The only good news I can recall of late is the reduction of oil prices and some commodities, what a relief! Unfortunately, we still need to feel the effects of the price reductions as inflation rates are still high as of this writing.

On the local front, we are not as badly hit as some countries but this does not mean we are headed for good times. I recently attended an ADB economic briefing for the American Chamber of Commerce (thanks to the sponsorship of my mentor Edwin Ngo) and let’s just say that macro-economic indicators and forecasts are not too encouraging. To prepare for an economic briefing I will be giving next week, I burned the midnight oil trying to get as much information as I can and as expected, there’s not much good news. The 1997 Asian financial crisis prepared many of our neighbors, including ourselves for the crisis today, thank God for that. However, when the US, Europe and Japan would be in economic recession, who would Asia sell its goods to? Although we trade heavily with our neighbors, most of our finished goods are bought by the first world countries. With a looming recession, one can just imagine a dampened demand for consumption which will severely have an adverse economic impact.

We can’t also be too bullish with our precious OFW remittances. Although it is still growing, we can expect the growth to drastically tone down and a possibility of a reversal of trend when the world economy is at a stand-still. In the Middle-East, majority our our OFWs in that region are in the construction industry; it is expected that construction in that part of the globe (as with anywhere else) will slow down, affecting employment of many our modern-day heroes.

What do we do then? Well, the first order of the day is ‘survival’. We need to survive the onslaught of all these changes. Prudence will be a keyword in the 2009 and we need to embrace that value if we want to survive. We need to prepare. Like going into battle, we have to be prepared for the uncertainties of the times. It is foolish to think that this economic cycle will be quick and it will be over just as fast as it started. Many will agree that these challenging times will not be a short cycle but a really long cycle. Over coffee, Francis Kong told me that this will not be a V shape cycle but a U shape one – meaning a long time in the bottom of the cycle, ouch!

My next article (part 2) will cover on some practical tips that in my opinion, will help us survive 2009 and beyond. I will, however, leave you with one very helpful advice that we should all keep to our heart: Do Not Worry. Worrying will only aggravate your condition and will make you act against logic and even common sense. Like always, I look to the Book of Life for wisdom, especially in trying times and was appeased by Matthew 6:27 – “Who of you by worrying can add a single hour to his life?”.

Keep the faith and catch Part 2 soon!

* J. Randell Tiongson is Personal Finance Coach & Educator and the President and COO of Personal Finance Advisers Philippines Corporation. He is a director of the Registered Financial Planning Institute Philippines and has been engaged in the various facets of the Financial Services Industry for two decades. He is also the co-founder of www.income-tacts.com, an inter-active site dedicated to the financial literacy of every Pinoy. For inquiries on training, speaking engagements financial planning and consultancy, you may send an e-mail to randellt@gmail.com.

Stress free december

2008-12-22T23:55:00.000-08:00

What creates financial stress during Christmas?

UNPLANNED CHRISTMAS SPENDINGS.

- the parties we need to attend and shell out cash for the food
- required exchange gifts
- over budget Christmas gifts for love ones.

Giving should be fun. The Bible says "It is more blessed to give than to receive." Why the stress? Everything unplanned is stressful.

If you did not prepare the budget for this year, let it be a valuable lesson.

Here are some tips for a stress free December:

1. Buy Christmas bargains at the start of the year. January and February are good times to buy crazy sales for Christmas 2009.

2. Stock cheap gift wrappers. Buy wholesale - it is way cheaper.

3. Set aside a monthly budget for the Christmas season.

4. Decide and stick with your budget.

Greenhills or Greenbelt?

2008-12-20T07:12:00.000-08:00

Matthew 6:30 If that is how God clothes the grass of the field, which is here today and tomorrow is thrown into the fire, will he not much more clothe you, O you of little faith?

One night my wife asked me, “Honey, how come you don’t bring me to Greenbelt for our dinner dates?” (Greenbelt is known for its expensive restaurants and a place to window shop.) I answered, “Hon… I could bring you at Greenhills! ( Greenhills is known for its cheap food and shopping). Our monthly budget dictates that going to Greenbelt for dinner would cost us 2 dinner dates for the month. So I told my wife, “Next time”. But God has other plans. Later that week my friend invited us to dinner at Greenbelt. We had a very expensive meal and another lesson from GOD. My faith was limited to my budget. My wife’s faith was limitless because she knew that our Heavenly Father was her source of provision and not our budget.

We must never limit God. We can never put him in a box. He is bigger than our budget. He is definitely bigger than Greenbelt!

Rich God, Poor God

2008-12-20T07:08:00.000-08:00

Exodus 16:31 ¶ The people of Israel called the bread manna. It was white like coriander seed and tasted like wafers made with honey.

I grew up in a family of business people. From my dad to my little sister, our vision is to become millionaires at the earliest time possible. On my last year in college, I was already dead set in going to full time ministry. When I told my parents about it, they were shocked and furious. “There is no way you are going to be a youth pastor, there is no money in ministry. They told me if I start my own business, I would experience provision way beyond I could imagine. It was a tempting offer – being rich in a short period of time versus going to the ministry not knowing where I would get my funds.

Poor God theology

Poor God was concerned about my soul but not with my finances and my future. Poor God wants me to work and produce and accept the fact that I am not going to be rich.

Rich God theology

That night I prayed to God and search the scriptures. “Is it true Lord that if I become a pastor I’ll be poor?” Then RICH GOD assured me and said, “Dennis, do not worry. You might not receive a salary from your business but you will be paid by the King of Kings and the Creator of the Universe. Rich God taught me that night that my provision is not based on my work, or my boss but my source of provision is God.

As the Israelites were provided with provision that came from heaven, so will God provide for me. No bakery in Egypt could bake manna for at least a million people. Only God could provide that!

John 6:31 Our forefathers ate the manna in the desert; as it is written: ‘He gave them bread from heaven to eat.’”

cash is king!!!

2008-12-15T18:30:00.000-08:00

4 major influencers in my financial life told me this:
Repeat it with me:

cash is king! cash is king! cash is king! cash is king!

Say it faster:

Cash king Cash king cash king, cash king

Say it a little more faster:

Cashing!!! Cashing! Cashing! Cashing!!!!

Don't you love the sound of that!!!

Build up your cash reserves. Save! Invest! Cut those credit cards! Pay off those debts!

CASH IS KING! CASHING!!!!!

do you really need it or do you just want it?

2008-12-15T18:19:00.000-08:00

Let us make an honest assessment. Every time you buy something ask this question:

Do I really need it or do I just want it?

1. The Plasma TV? Need or want?

2. The 2nd car? Need or want?

3. The Iphone? Need or want?

4. The Macbook Pro? Need or want?

5. The bag or the shoe? Need or want?

Inside every person is a child wanting to buy stuff. I remember when I was kid, I saw this GI JOE. I wanted it so badly but my parents won't buy it. They say its not in the budget. I cried, I shouted, I screamed - " I NEED THAT GI JOE!!!!!"

Do you still hear that child in you crying often? Do you drown yourself with stuff that you want but not really need?

Let's face it. Some of us are not Financially Free because we think that we NEED everything when in reality you just WANT it.

giving is getting

2008-12-14T18:30:00.000-08:00

GIVING IS GETTING.

When I give, I receive. Sounds weird?

let me give you true to life examples:

1. I was going to Bogota Colombia and I needed P150,000. Days before the flight I was short P50,000. What did I do? I gave away P5000 and trusted the Lord to provide for my trip. The next day I received $200.

2. I am a tither. I give 10% to the church. When i was single I decided to go beyond my tithe. i was earning P10,000 a month. When I started giving beyond my tithes my salary multiplied 4x the next month.

3. When my wife gave birth to our 2nd daughter we decided to lessen our giving. After 3 months we realized our income got smaller as well. We then decided to stretch our faith and start giving more than what is required of us. The day we decided, we got a letter with a cash enclosed in it.

GIVING IS GETTING!

Give, and it will be given to you. A good measure, pressed down, shaken together and running over, will be poured into your lap. For with the measure you use, it will be measured to you.” Luke 6:38

The CLUELESS MONEYMAN GIVES TO LIFE.

living and active

2008-12-14T18:20:00.000-08:00

When you think money has no life on its own, you are gravely mistaken. Money is ALIVE. It is living and actice. It moves. Interest rates, inflation, risks - money moves. Money never stops.

Try this experiment: Bury your money for 5 years and dig it up after. For sure you that money won't have the same value as it had 5 years ago. Why? because money is living and active.

As what financial expert, Dave Ramsey said, " You must gain control over your money or the lack of it will forever control you."

Be pro active with your money. Make it work for you.

stuff

2008-12-11T08:26:00.000-08:00

We just finished cleaning house tofay. It took us 3 days to sort out the clutter and categorize what we have to give and what we are going to sell.

Here is what I realized. In life we accumulate a lot of things we really don't need. How many times have I succumb to the temptation of buying stuff. Our boxes of stuff are evidences of how we accumulate things in life that are not really necessary for our survival and living.

The world tells us to accumulate stuff, BUY, COLLECT, splurge. We thought doing so would ensure our happiness. Let me be brutally honest.

Our stuff won't make us happy.

You think the car you are dreaming of would make you happy?
You think the entertainment package you want for your home would make you happy?
You think the gadgets you would accumulate make you happy?
You think the thousands of shoes you buy will make you happy? Ask Imelda...

One way to make extra money is to avoid buying stuff that are not essential. Cut off on expenses that does not really matter. Resist the urge to collect stuff.

Invest in what matters most.

what I did with my money and what you can do with yours

2008-12-08T18:28:00.000-08:00

As the dust settled after my very exciting wedding day, we had to decide what to do with the money that we have.

Do we buy the LARGEST HDTV IN THE WORLD?

or let the money work for us?

The problem with most of us clueless people is that we work for money when money should be working for us. In the Philippines, 98% of the people live from paycheck to paycheck. We have become slaves to our paycheck. We let money dictate how we live our lives. It should be the other way around. Dictate what your money should be doing for you.

Where did we put our money?

Step 1: Pay off your debt - since we were debt free, we went to step 2

- pay off your credit card debt, student loan, auto loan. It would be great to start your marriage debt free! It removes the burden for you and your wife.

2. We opened an emergency fund account.

An emergency fund is liquid money that you promise not to touch unless emergency arises like lost of a job, hospitalization and window shopping. Remove the last option! A basic emergency fund would cover your projected 3 months living expenses. So if you have a monthly living expense of P40,000 you must have at least P120,000 in the bank. Some people I know stored upto 6 months of living expense in their emergency fund.

3. We bought essential home appliances.

4. Bought some insurance. - more on this by my guest bloggers next week.

5. Made some investments - low risk and high risk investments. More on this on my next blogs.
I did make some dumb investment decisions again!

6. Building our emergency fund to one year.
still in the process of finishing this one!!

7. Set up a retirement fund.

Would try to get into details on each aspect this week.

my first million part 2

2008-12-08T02:05:00.000-08:00

GREED won't get you anywhere. You would always want more!!!

After losing all my money - I went back to work but this time with a different perspective in life. I surrendered my business to the Lord and we became business partners.

I've learned that money could be taken away from me anytime. I wanted God to handle my business from that day on.

In a 2 year's time, God was able to restore all my loss. I knew if I surrender to Him, He will provide.

My job is not my provider.
My business is not my provider.

JESUS is my provider. He will give me my first million.

On the 3rd year, I quit my job and stopped my business and decided to go to full time ministry. I lost a high paying job and secure financial future. It was a test of my faith.

Is Jesus who I claim He is?.... my provider!!!!

On Feb 5, 2005 God gave me a wife.

On Feb 6, 2005 I was a millionaire.

ps: my wife was not the reason I became a millionaire, but she sure did help me achieve it!!!

my first million part 1

2008-12-07T19:00:00.000-08:00

I came from a well to do family. My parents were rich.

I WAS NOT!

I had to work for my money. It was a SY FAMILY RULE. Once you graduate - you are on your own financially. If you want to eat out, work for it. You want new clothes - earn it. You want a car - withdraw from your bank account.

I HATED IT!

But it pushed me to work. I became a working student. I work after school. We were in the fashion industry. I was selling garments in downtown Manila.

I WAS EARNING!

I made my first P100,000 when I was in 2nd year college. My friends have P1000 in the bank. I had 100x more.

I WAS GETTING RICHER

When I graduated I had MONEY. I worked hard for it. I love the thought that I can buy things I wanted. I got obsessed with money.

MONEY TOOK A HOLD OF ME

A friend approached me one day and told me I could earn big if I invest in his business. He promised a 2% monthly interest. That was big!!! That was extra income for me. I invested. I was living the life and I was earning.

GREED

For 1 1/2 years I was getting more money than my heart can take. GREED became my bestfriend. I was lazy but I was earning till....

I LOST IT ALL

One day i received a call. I was informed that I lost my investments. After 2 years of putting all my money in my friend's business - it disappeared. GONE! NADA! ZILCH!

I invested in a scam. A BIG MISTAKE! My money gone!

THEN I BECAME RICHER

A costly mistake made me richer. It started my journey to financial literacy and spiritual finance.

This is the CLUELESS MONEY MAN'S VISION

"To equipped people to be financially literate and biblically sound in managing the finances God has entrusted them."

speak to your wallet?

2008-12-07T18:29:00.000-08:00

How many have I tried speaking to my wallet. How many times have I declared for MONEY, to come forth. I can't count how many times! Does it really work?

But no matter how hard you profess that you are going to be rich if you don't have a CLUE in handling the blessings that is coming your way, you will confess your way to BANKRUPTCY.

Being in a state of ABUNDANCE requires more than just speaking to your wallet. You have to speak to

a. your heart - pray for contentment, simplicity and frugality
b. your hands - to work hard, to be fruitful and productive
c. your mind - to shun the poverty mindset, to work smart, to study how money works

As what James said " Faith without works is DEAD"

The Clueless Money Man

2008-12-07T17:45:00.000-08:00

I am a clueless Money Man. I made my first million by accident. I stumbled upon wealth in an unusual way. I chance upon having friends who are famous financial advisers. I want you to join me and my friends as we journey through some pitfalls, traps and successes of people who made it, lost it, and trying to make it in the crazy world of finance.

This site is dedicated to the people who don't know what to do with their money. This are also for people who knows what to do with the money that they still don't have.

I am excited as you are. This is going to be a fun journey to becoming the billionaires God has called us to be. As what my good friend say, "It's the first billion that is hard to reach."