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A few days back, I launched ‘Green Lights Ahead’ as a declaration of my commitment to get out of the rat race and enjoy a financially free life. Now, let me write the things I’ve already done since I started to read Rich Dad’s series of books and learned a lot from Sir Robert Kiyosaki.

Jun 24, 2014. I first bought the book ‘Why we want you to be rich’. This the first book collaborated by Robert Kiyosaki and Donald Trump, the two business tycoons of Americas. Both of them gave very powerful insights of how financial education is important in the information age. I’d like how they started the book by telling the story of how money was born and how fake it is! From then, I know there’s a lot more ‘revelations’ they will share that will make you think of yourself, the economy and your future. It is indeed an eye-opener. With this book, I started to change my mindset about money, how important it is in today’s time yet why should I not wish for pay raise or additional active income. This book also discusses some ways why the rich become rich and the poor and middle calls shrink. On the other hand, after reading this book I realized that I do not really hate reading books as I did before. It depends on the genre of the book you read and it happens that I enjoy reading personal finance, economics and any other related subjects. Thanks to Robert as well for recommending other books throughout. It’s already listed and will definitely read each. TRIVIA: This is the very first book I ever bought since birth!!!

August 9, 2014. I bought the book ‘Rich Dad, Poor Dad: What the rich teach their kids about money that the poor and middle class do not!’. This is the book that started it all. The first lesson of this edition is to not work for money but instead make money work for you. The exchange of conversations of Robert and Mike with Rich Dad is exceptional! In fact, I FB status some! :) The book discussed why your house is not an asset and what exactly is the difference between asset and liability outside the accounting concept. You’ll find a storyteller in the book because Robert explained all the concepts and ideas very well.

August 15, 2014. I started microfinancing. But pardon me, it’s an ‘illegal’ one. Well, illegal in a sense that it’s not actually registered in securities and exchange commission. It’s a simple pautang that I called microfinancing to make it more proper. The maximum interest is 10% monthly and I did a flexible terms for the borrowers so to help them pay me back the easiest possible way. There’s a contract and a little requirements for document filing and proof of loan and payment. When I tried to google genuine licensed microfinancing, it requires atleast a million in capital to start up which definitely I do not have yet. I got two clients when I started and they just borrowed manageable money. Now, I have four. This is where my very first incentive as a sales agent went.

August 19, 2014. A BPI Representative phone called me telling that I have a pre-approved ‘extra cash’ worth Php30,000.00 through BPI Personal Loan with an add-on interest of 1.50% monthly payable for 12 months; that is PHP2,800.00++ per month. Sounds fantastic at first especially that I wanted to invest onto something that I didn’t know yet at that time. When I inquire further, there’s an application fee of PHP 1,500.00 that will be deducted to the principal amount, thus, you’ll only have PHP28,500.00 take home. I tried to analyze the figures if it’s sound to find out that the real simple interest of that loan is at least 17% ([2800 x 12 – 28500]/30000). I am actually not afraid now to borrow money because I’ve learned in Robert’s book that the rich grows money they do not own yet they earn from it. Although I know that it’s an opportunity to grow that money, I realized at that time that I do not have yet a good idea where to invest the money. I just don’t want to be indebted ‘without being paid’. Moreover, it’s another opportunity as well to build up my credibility as a debtor to that bank because in case it pushed through, it will help me with more investments in the future. But since it didn’t, I took the opportunity to just apply for a credit card. Again, the purpose is to build credibility.

August 23, 2014. I visited Granville in Catalunan Pequeno Davao City because a friend of mine told me that there’s a house there worth 6++k monthly to own. My idea was to avail that and make it available for rent so I will not pay for the amortization yet I will still earn and the house will be mine after all. However, the house is still for construction as it was a new village to build up. It’s pre-selling and there I learned that pre-selling will make you own a property at the time your application got approved yet you have to wait and pay for 12 months or so before the house will be constructed. It’s a liability! So I declined the offer.

September 2, 2014. I submitted online all the requirements to my credit card application with the help of the representative who called me up about personal loan. Thank you Jennifer if you happen to read this! Anyway, I applied for credit card for two purposes – convenience since I do not really bring much cash with me whenever I go out and to build my credibility as a debtor so I may use that history in my future plans of investments.

September 13, 2014. I bought the ‘Rich Dad’s Cashflow Quadrant: Guide to Financial Freedom’. The book discussed each quadrant of the cashflow (Employee, Self-employed, Big Business, and Investor) and how you can actually be successful to each. It provides realistic recommendation of how to be successful to where you want to be and where your passion is. As most of us wanted to be, he also shared some tips on how to be a successful big business owner and investor through learning the different types of business systems (Traditional, Franchises and Network Marketing) a person wanted to work around. It also discussed what risky investment is in rich and poor and middle class’ perspective. On the last part of the book, Robert enumerated the seven steps to finding the financial fast track.

September 15, 2014. My credit card application was approved. A friend of mine once told me that his friend has to time deposit PHP25,000.00 for a year to have a credit card. He urged me to follow but I refused because it actually defeated the purpose of getting a credit card. Why not use that cash to buy what you want than time deposit it just to get a credit card when you already have the cash? I didn’t get the logic there. I’d rather invest that amount than trade it for a plastic. So when my credit card was approved, that friend must not understand the real purpose of credit card and didn’t insist to be part of the exception to the rule.

September 27, 2014. I met a broker in one of my friend’s party. She told me that she has a 300 square meters vacant lot a few blocks in front of Secdea Beach Resort in Samal Islands, Davao payable through housing loan for PHP400,000.00. Indeed, it’s a good investment because of the uptrend tourism and economy of Davao (based only on signs of a good economy such as more infrastructure commercial building from investors such as Ayala, Radison, etc). However, I was thinking that my money to be invested on that one for 20 years is a liability because I am not being paid for that debt. Right now, I am on the process of learning further about the housing loan so I know how it works and how it will help me get that piece of land at a manageable amount for a certain period of time. For now, I declined the offer. (May somebody please give me an advice regarding this? I’ll appreciate all your help!)

October 10, 2014 I got my 13th month pay and invested it to a Lanzones farm in Laguna. The parents of my brother-in-law owns this and proposed of investing my money to it since they also need cash that time. The harvest time is every third quarter of the year which means that I need a year to obtain the interest and capital gains. The ROI is not as huge for that span of time. I know it wasn’t a so good deal but dealt it anyway as a help to them. After all, there is still a little return.

October 12, 2014. I started to learn about foreclosure properties and I landed on Mr. Jay Castillo’s site. I tried with all the face I have, by commenting on his page, at around 2AM to seek for his mentorship in real estate because I wanted to have a mentor in this journey. Sadly, hindi niya ako napansin. However, I keep on visiting his site to read the articles and his experiences because he has a lot of good insights. You must visit it in case you are interested to foreclosed properties and some other financial advices he may give you.

October 13, 2014. A facebook post in Davao Sale Page says that there is a house for assume in Deca Homes Davao for PHP150,000.00 (negotiable). I tried to inquire what exactly house for assume means. The girl on the other line unhesitatingly shared with me that ‘house assume’ means house that is not being paid for the rest of the terms. Which means, I have to pay the current owner PHP150,000.00 for me to get the rights on the house and continue the remaining balance payable through housing loan. I do not have that money or don’t have somebody to borrow that money so I again declined. However, I learned from that inquiry.

October 14, 2014. I registered online to Pisobilities Caravan of Sir Francisco Colayco on the 25th. This will be my first seminar about personal finance. The purpose of my attendance is to actually compare his insights to that of Robert’s. I’d like to have a perspective coming from a Filipino in the Philippine setting since most of the examples of Robert were from the US point of view. After I registered, I thought I was scammed because in their site, there’s no acknowledgement of receipt nor email notification of the registration. And when I was confirming my attendance to the mobile number stated in their site, nobody was replying and so I asked for help from DavaoBase in which they helped me immediately. I received the confirmation from the foundation after two days. Thanks DavaoBase! By the way, the caravan comes with a free ‘Wealth Within your Reach’ book by Mr. Colayco. Trivia: This is the very first seminar I ever paid for about personal finance.

October 15, 2014. One day when I together with my two friends were on our way to Digos City, I got a chance to briefly discuss with them the books I am reading about financial freedom and how it actually changed my perspective. They got interested to it and asked to borrow the book. At first, I was hesitant to lend them the book because I want them to buy their own so that there’s more commitment to it. But then I lend it anyway hoping that it will enlighten them and take the first step to financial freedom through education.

October 18, 2014. I started to create Money Jar. This is a concept I learned from Sir Jay of Foreclosure Philippines through one of his article in his site. Prior to this, I have already been writing down all the expenses I incur and trying to balance it with my income and remaining cash. In doing it manually, it’s really hard to monitor the cashflow therefore most of the time, what I got is rough estimate. Through Money Jar, I am now able to exactly monitor daily my expenses and income. Aside from that, I did some modification from Sir Jay’s idea by summing up all the expenses, income, investments, savings, etc. and have a comparison to each so I would know where my money is going and how much from the investments will I expect in return at the end of the month. Through this, I will then be able to adjust in line with my goal by, for example, reducing my expenses and instead put it in savings or investments. I recommend this to everyone because it will help you control and analyze the cashflow of your money and through analyzing you will realize the next steps you have to do.

October 20, 2014. I tried to inquire about a facebook post of house for sale near SM Ecoland. Through the pictures, I guess the house is livable. However, despite double-checking the contact number posted in the ad, nobody replied. I am a client interested to it just met an agent not interested to client. LOL.

October 25, 2014. Pisobilites Caravan was successfully conducted in Ateneo de Davao University. Mr. Colayco discussed more about investing and key questions to ask before going into the deal. There were just some points where I’d like to disagree such as diversifying investments, the concept that the longer the time of investment the lower the risk and the longer the investment horizon the higher the return. Well, maybe I am coming from Robert’s concept of ‘Focus’ in investing which I truly believe what should be for a better return. Anyhow, that’s the only difference they have. Other than that, they both agreed that financial education matters a lot on our way to financial freedom. Indeed, it was a great talk and worth attending. Thanks, by the way, for the free ‘Wealth within your reach’ book and a signature from the author. P.S, I’m already half way to finishing the book.

October 26, 2014. I launched ‘Green Lights Ahead‘, my commitment to my journey to financial freedom!

That is all. You will be reading more about my journey on the coming days!

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