Be Free Pinoy - for your FREEDOM

del.icio.us Tags: Ron Scolastico , Wisdom , Strategy , Success Principles 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 con...

Five Equations for Financial Wellbeing POSTED BY ADMIN   ON FEBRUARY - 1 - 2011 New years are befitting of great beginnings. As you promise to exorcise personal demons and execute a new world order, have you looked at how much you’re really worth? Ultimately, changes command financial viability – so be armed with the five financial equations below. I. Savings » A Sustainable Bank Accounts Proper partition of income and allowances is key to a bank account that actually grows, not merely dwindle. Here’s a simple equation: Income – Savings = Expenditure Or if you want to be snide about it: Reality – Delusion x Sacrifices = Money for a Rainy day Cutting corners is a good step towards liquidity. Substitute brand name products (clothes, food, even shoes) for cheaper alternatives. Living within one’s means should not equate to a vow of poverty. It’s more like allocating your resources properly, instead of wasting too much on unnecessary stuff. II. Investments » Mak...

Develop a Personal Budget Save 20% of your Net Income Think, Talk & Plan in terms of your Net Income Round up your Checkbook e.g.if you spend P 950.00, record it as P 1,000.00 – overtime, this creates a nice cushion. Have only one Credit Card (Don’t use it carelessly). Decide to invest at least 20% of your Income. Give 10% of your Income to your Place of Worship. Avoid paying Interest, instead get paid (e.g. dividends, royalty, etc…) Read & Absorb books on Money Management and Investing Become knowledgeable about Investing: master Risk management & Risk / Reward balancing. Choose a competent accountant to work closely with you. Review your RESULTS monthly.

  WITHOUT LIFE  INSURANCE Do not go without life insurance if you have anyone depending on you.  If you are working and have a family that depends on your income, you need to have ten times your annual salary in term life insurance.  You can stop buying the insurance when you have built up enough cash to replace your salary (again, 10 times your salary).  It would be normal to buy 20-year level term when the children are born since that will last until they are into college and hopefully you will have become wealthy enough to be self insured by that time. (If you are investing regularly, you will be).  If you do not have a standard job but take care of the children, you should still have insurance to cover a nanny or other arrangements.  If you also take care of the house, money for more meals out, maid service, and other help will be needed. WITHOUT DISABILITY INSURANCE Do not go without disability insurance.  You are much more likely to be di...

del.icio.us Tags: Wealth Concepts , Money attitude , financial idea , financial concepts African hunters have a clever way of trapping monkeys. They slice a coconut in two, hollow it out, and in one half of the shell cut a hole just big enough for a monkey's hand to pass through. Then they place an orange in the other coconut half before fastening together the two halves of the coconut shell. Finally, they secure the coconut to a tree with a rope, retreat into the jungle, and wait. Sooner or later, an unsuspecting monkey swings by, smells the delicious orange, and discovers its location inside the coconut. The monkey then slips his hand through the small hole, grasps the orange, and tries to pull it through the hole. Of course, the orange won't come out; it's too big for the hole. To no avail the persistent monkey continues to pull and pull, never realizing the danger he is in. While the monkey struggles with the orange, the hunters simply stroll in and capture the m...

Wanted: A Financial Life Partner Before the big financial shakedown, money issues dwell on the shadows of sensitive and taboo topics. There was no urgency to put one’s financial house in order, until Filipinos realized that anyone could fall victim to bad money management and bankruptcy. Read more...

As I read the the blog that talks about the Two Ways to Achieve Financial Freedom , the second of “Generate Passive Income”  which is to “Earn More and Desire Less” catches my attention. It is a kind of character that almost all of the Filipinos don’t have though it could be achievable  by anyone: it does not require a college degree nor any monetary value to have it; a minimum wage earner can achieve this if there is a will. Looking behind it, there are factors I can understand why having this kind of behavior is a challenge to every Filipino. Social Factor My elder daughter (elementary grade) is implicitly desiring for the latest gadget (i.e. iPhones & iPads). Though she is still a little girl, the thing that drives the craving within her heart and mind is already sown within. I believe this is common even to us adults. We care so much on what is the latest, what our friends have, what others have. It is part of our subconscious to be Socially-IN. Ayaw mapag-iwanan n...