The Rule of 5

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Wealth Principle

Ron Scolastico, a wonderful teacher once said “If you would go every day to a very large tree and take five swing blows at it with a sharp ax, eventually, no matter how large the tree, it would have to come down.” Simple yet make sense.

Many are overwhelmed how to figure out success in their finances. Majority look at it as if cutting a big tree that it should need a chainsaw to cut it off - underestimating or even neglecting the power of an ax. Having a chainsaw is preferable and efficient though however, millions of us cannot have it – I’m speaking on our financial quest of course not the literal “Big tree” and “chainsaw”.

Shall we wait to have a chainsaw first before we start cutting that tree? or shall we get an ax while ax is very available and start blowing & swinging it off?

5 Financial Small Blows That Move Your Financial Success

Below are my 5 financial blows in connection to what Mr. Scolastico said that if continually and consciously done, will amaze you.

1. 80:20 Rule (At least)In your pay check, take out right away the 20% of it for your Tithes and Savings. This is necessary because by experience (I believe many of you agree) – it is hardly we can have something left from it until the next payday if we are not going to take it first. Many are unwilling to do this but here is the truth, 1,000.00 or 500.00 OFF per pay day will never starve your family while 50,000.00 per pay day is not enough if we wanted to. Your choice – try to catch up living a 50 thousand life per payday even if you earns only 10K per 15 and shall be paying the price of in DEBT in the future? or live as if 9K life per payday though you earn 10K and expect a DEBT FREE living plus an opportunity to grab future investments?
   
   
2. Always Look For An Alternative
   Kids really love to go to Jollibee – perhaps, marketing of JFC is amazingly effective!
   Good news, nowadays there are dressing mixes available in the market so that mommy can DIY at home. Just be creative in convincing your kids to patronize your own Chickenjoy version – saving the transportation cost, fuel cost, etc…
   
   
3. Make It Grow
   Savings is the only means for the majority to build a capital. Unfortunately, there are a lot of options where you can put your money and very few are aware of it. The common and popular instrument is Bank Savings account that only grows 1% per year (gross from Wholding tax). As you know it, you’ll see that things like Mutual Funds, Trust funds, Equity Funds, Government Securities, UITF, Insurance Policy, Cooperatives Shares, etc… are existing instruments where you can utilize for your savings of which technically, gives you potential return far higher than your bank is giving.  Try to talk to Financial Advisors and learn their advantages and disadvantages and decide for your self.
   
   
4. Be Creative & SensitiveOne of Warren Buffet’s principles is “Never depend on a single income source, make investments to create second source of income”.
   
   Ironically, many of the working class strive to get promoted for a lateral increase of the pay check every payday and they call it success. However, it just create more pressure to themselves and to their wallet.
   
   I remember one time when I was working, a certain department Manager got promoted to Plant Manager level. That time, they were at the start of paying their huge home mortgage (million worth) that he as a department manager (previous), he used to pack his lunch and you can’t hardly make him buy at the canteen: even a single cent counts to him (anyone around was laughing within themselves when they see he was paying with some 5 cent coin- a coin with a hole in the middle-LOL). Few months after he got promoted, some of the staffs/supervisors/Managers – often “binibiro” siya (but I did see they were serious) “Blow out ka naman Sir” – The wallet pressure to spend kasi nga “promoted” is very inherent. In fact, it once became a tag-line on a TV commercial “Pa burger ka naman!”.
   
   Creativity and Sensitivity to ideas and investment opportunities will definitely work if this is where you will focus improving. The income potential through these is limitless which will blow your mind out if you hit them – this is where you can create your LUCK as I have mentioned above. All you need to have is FUNDS (created from savings – an ax approach).
   
   
5. Take RISKS (Intelligent RISK TAKING of course)
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   The FEAR of loosing is the kiss to failure while careless “NO FEAR” is fatal.
   The real investor knows no investment that is RISK FREE. Nobody can change that fact. Good news, the Higher the RISK the HIGHER is the expected returns - investors were able to steer their approach and take advantage of the situation.
   
   Here is how they think : if RISK blows them off, they have already made sure they will not be Financially ripped off-no problem at all. And if, they are hitting the REWARDS, they shall ride up to the ceiling and get out - pretty happy.

Attaining Financial Success needs a “BIG break”  is both a MYTH & a Fairy Tale that came true to some: very few like Pipito Manoloto. However, a lot of successful people did not have them in their success ingredients. Henry Sy came to the Philippines with nothing - but the consistency and diligence to his financial approach & principles are the thrust of his success. Here is for those who think LUCK is the game, you can create your LUCK if you do build your capital.
Just one last phrase for you to succeed – JUST DO IT!

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