Are You Financially Healthy? 3 Causes of a Weak Money Immune System

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Are you physically healthy? 

A lot of people think that germs cause sickness. They DON’T. Did you shake the hand of another human being in the past week? I’m sorry to tell you this, but that hand you held was overflowing with infectious, contagious, disease-causing germs. 

But you didn’t get sick. Hmmm. Why? Because your immune system was strong and simply kicked the germs out of your life. Here’s the truth: Sickness is NOT caused by germs. Sickness is caused by a weak immune system. 

And why does our immune system weaken? 

Three reasons: 

(1) Toxins (This isn’t germs but manmade chemicals!) 

(2) Malnutrition 

(3) Imbalance 

You may be asking, “why are you talking about physical health? Isn’t this a financial article?” 

Yes, it is. 

Here’s the reason: Many people are financially sick. Many people have financial cancer. Many people are financially dying. Some people think that they’re financially sick because they lost their job or their business crashed or their house burned down or someone borrowed money from them and didn’t pay… My answer: All these catastrophes are like germs. NONE of them caused the financial sickness. They just triggered it to happen. 

You got sick because of a weak FINANCIAL IMMUNE SYSTEM. And the causes are the same: toxins, malnutrition, and imbalance. 

And the solutions are three very simple key principles that will save you from financial disease. 

But first, here are the three causes of a weak Financial Immune System…

1. Financial Toxins 

When we poison our physical bodies with manmade chemicals from truckloads of processed food and barrels of synthetic medicines that we pop into our mouth—we weaken our immune system. To heal our bodies, we need to detoxify. 

In the same way, why are MANY people sick financially? 

Because of Financial Toxic Overload. I’m talking about none other than TOXIC DEBT. 

Uncontrolled debt will kill you. If you want to repair your Financial Immune System, you need to be free from debt. 

I have mentioned here about the Filthy Rich. 

But do you know there’s such a thing as Filthy Poor? 

The Filthy Poor Destroy Themselves with Money They Don’t Own 

Just like the Filthy Rich, the Filthy Poor are very miserable. 

The Filthy Rich are destroyed by the money they possess. The Filthy Poor are destroyed by the money they want to possess. Because of their overwhelming desire for material things, they borrow, borrow, and borrow. 

We mistake some people to be rich. Actually, they just appear rich. Much of their lifestyle is built on debt.

There are some people who can’t go out of their house without wearing designer garb. Their shirt, pants, socks, shoes, shades, watch have to be designer. Even their underwear. Even if no one sees it. It’s perfectly okay to buy designer underwear if you’ve got the money. But there’s something wrong if you have to borrow to buy them! 

I know some people MUST wear shirts with a crocodile on their chest, even if they have to borrow money. That’s nuts. (What’s the difference between a croc and a frog?) Again, there’s nothing wrong with buying expensive shirts. But you do that when you’ve got LOTS of money already. 

The key is PATIENCE. Don’t be in a hurry to live a lifestyle that you can’t afford. 

The problem isn’t materialism. (That’s just a symptom.) The problem is an extreme lack of self-worth. They believe that possessions can cover up the gaping wound in their heart. So they will keep buying expensive things so they’ll feel like somebody…, even if they have to max out their seven credit cards. 

Get rid of toxic debt! How? 

Follow the #1 Rule of The Rich … 

#1 Rule of the Rich: 

“What You Spend Should Be Less Than What You Earn.” 

That’s it. It’s such an amazingly simple principle, yet if you violate it, you will be destroyed. Whether you’re a person, a corporation, or a nation! Economists give very sophisticated and convoluted reasons why the economy of Europe and America became very sick these past few years. Let me boil it down to six words: They spent more than they earned. Period. 

When I got married at 25, my husband and I had very little money. So we lived simply. 

For two years, we stayed in a small apartment. 

Once a week, we still had our romantic dates. During the weeks when we had some spare money, we ate in fast food joints. We stayed with the cheaper items on the menu. Usually, we’d half the order and share it together. 

During the weeks when we had no money, we walked outside under the starlit sky, held hands, and talked the night away. 

Sometimes, we became creative. We ate our dinner at home and, after our meal, dressed up really well. My hubby wear a long-sleeved polo shirt and I would wear a dress. And we’d drive to a 5-star hotel. We’d sit down in the lobby and order Coke. I had to learn the art of looking at the waitress in the eye and ordering Coke with the confidence of a multimillionaire. 

My gosh, it was the most expensive Coke we ever drank. But they gave free peanuts so we ate and even asked for refills. And we would stay there, absorbing the luxurious ambiance, for two whole hours. We felt very rich even if we had nothing in our pockets. 

Today, 13 years later, my husband and I date in 5-star hotels, but this time, we don’t just eat the free peanuts only. We actually eat in their restaurants now. For special occasions, we even check-in for the night. It’s sweet victory for all the times we went there without money in our pocket. 

When we couldn’t afford it, we didn’t buy. 

Let me say it again: What you spend should be less than what you earn. 

Here’s the second cause of a weak Financial Immune System…

2. Malnutrition 

When you think of malnutrition, you automatically think of poor kids in Africa who look like toothpicks. But today, there’s a new kind of malnutrition. There are MANY malnourished kids in First World countries who are overweight! Why? Because of all the fake food they’re eating. 

But down to their cellular level—they’re starving to death. 

In other words, they’re dying! 

In the same way, many people look rich—because they’ve got some money in the bank. But in reality, they’re dying. How come? Because they’re money is shrinking! And one day, it will disappear. 

Here’s #2 Rule of the Rich… 

#2 Rule of the Rich: 

“What You Save Should Grow More Than What You Lose.” 

Warning: Each year, you lose four percent to seven percent of your money! Many people don’t understand this phenomenon called inflation. Because they don’t know that their money is slowly decreasing year after year after year, they’re happy putting their money in a bank savings account that earns a measly one percent a year. 

Bottom line, you’re losing money in the bank. 

Hey, I love banks. You should put your emergency fund in the bank. But you can’t put your long-term investments in the bank. 

Where should you put your money? 

I urge you to invest in (1) Paper Assets, (2) Businesses, and (3) Real Estate. I don’t have time to talk all about all these vehicles. BUT let me tell you about my favorite “money multiplier” which we teach in our community.

Personally, I have found that that SAFEST place to put your money is to buy tiny portions of gigantic companies in the Philippines. And the best way to do that is through the stock market or through equity funds. 

I know. The typical person on the street is absolutely horrified of the stock market because they’ve heard of horror stories of people losing their shirt (and pants and socks and shoes!) in the market. But that’s because they TRADE the market, buying small companies that don’t have any earnings yet… 

Buy only giant companies. Because I buy Meralco shares, when I see the Meralco posts on the street, I can say, “Hey, I own one of those electric posts!” Because I like buying the shares of the three top banks, when I walk into a BDO bank or a BPI bank or a Metrobank, I can officially say, “I own a few chairs here!” 

I’ve taught my helpers how to invest in the stock market. I told them that next time they walk into Shoemart, they can tell the security guard, “Excuse me, I’m a part-owner of Shoemart.” Because technically, it’s true. 

And the other key is to buy not once, but put little amounts of money—P1000, or P2000, or P3000—every single month—for the next 20 years. That way, the ups and downs of the market don’t matter. 

When I invited my driver to invest in the stock market, he didn’t want to do it. And understandably so. He’s got a wife and four kids to feed. He couldn’t imagine how he could set aside P2000 every month. But after about a year of convincing, grudgingly, he said yes. He started investing P2000 a month. But he saw the results and upped his investing to P3000 a month. And when he got a bonus from me, many times, he’d give half of it to his stock market. After less than three years, he now has P116,627.70. For a driver living in the slums, that amount makes him feel like a multimillionaire. 

One of my helpers, who I already promoted to bookkeeper, already has a huge stock portfolio. In three years, she’ll be a millionaire. This thing works! 

Can I say something? If in 10 to 20 years, YOU are NOT a multimillionaire, it’s your fault. 

You simply didn’t follow the path I’m showing you. 

But I don’t want to speak in the negative. 

Let me hallucinate with faith. I prophesy that in 10 to 20 years, every member of our community will be multimillionaires! Yeah! 

Let’s now go to the third cause of Financial Sickness… 

3. Imbalance 

Modern medicine is 100 years old. 

Traditional Chinese Medicine is 4,000 years old. 

And according to Traditional Chinese Medicine, we get sick because our body has lost balance. There has to be a balance between heat and cold, between acid and alkaline, between activity and rest… 

For example, we know that stress is bad. But having NO stress is bad too. 

You need positive stress! 

Another example: Rest is good. But if you have too much rest, your muscles will atrophy. 

I repeat: Balance is important for your physical health. In the same way, you get financially sick if there’s imbalance in your financial life. 

For example? 

#3 Rule of the Rich: 

“What You Earn Should Be Equal to What You Know.” 

Do NOT try to earn more than what you know! 

Confidence is a terrific thing. Overconfidence is a terrible thing. 

As an entrepreneur, I know that risk comes with the territory. But there’s reasonable risk and unreasonable risk. Today, I’ve learned NEVER to take unreasonable risks. 

Why? Because every time I take unreasonable risks, I fail. I lose money. I fail big time. With my face flat on the floor—my face black and blue, my nose bloodied up. After my big failure, I look back and realize why I failed: I took unreasonable risk because of PRIDE. (Proverbs 16:18 says this: Pride goes before destruction, a haughty spirit before a fall.) I realized I was too in a hurry. I wanted the big and juicy carrot NOW! 

Before I take risks, I first find ways to lower that risk. 

How? By raising my wisdom, I lower my risk. 

When I increase my learning, I increase my earning.

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Before You Invest - 7 Rules of Investing

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As you know, I don’t write about my victories only. 

I also write about my failures. My very big, shameful failures. 

Why? To give you hope that you’re not alone in doing foolish things with your finances. 

Here’s my confession: For several years, different groups of friends invited me to invest in their small businesses. In total, I invested millions in four small businesses owned by my friends. I had no control over their businesses. I didn’t interfere or investigate. I just gave them money. 

By nature, I trust people’s character and competence. That has blessed me many times. But it also has hurt me many times. 

What happened to those businesses? Sadly, all four of those businesses are under water today. Sinking with these businesses is my hard-earned money. 

Hey, I’m to blame. I lent them money without looking keenly into the details of their business. I didn’t have time. I didn’t bother. And I took the easy path of just giving them my money and not checking regularly how the business was operating. 

But losing my money isn’t what makes me sad. I can earn the money I lost. I’m really sad for my friends who owned these businesses—and the other investors like me who put their money in those businesses. Some of these fellow-investors are also friends of mine. (I know one person who invested his retirement money.) 

Reflecting on my painful experience, I want to share with you 7 ‘Don’ts’ that you need to follow so you won’t lose your money… 

1. Don’t Invest Just Because They’re Good Friends 

All my failed investments were not with strangers, but with friends I trusted. 

In other words, I invested my hard-earned money with them because they were good people. They were kind, respectful, prayerful, helpful, loving... 

My painful lesson? Having a good heart is NOT enough for a good business. You need a unique kind of wisdom. 

But not just any kind of wisdom… 

2. Don’t Invest Just Because They’re Professionals 

My friends were brilliant doctors, brilliant engineers, brilliant administrators… but they were not brilliant entrepreneurs. 

There’s a BIG difference. 

A great chef can cook a great meal but run a bankrupt restaurant. A great architect can design a great house but run a bankrupt architectural firm. 

A great preacher can preach a great message but run a bankrupt church. A great doctor can perform great surgery but run a bankrupt clinic. 

You need entrepreneurial wisdom. 

And you don’t get that just because you have a business idea…

3. Don’t Invest Just Because They Say It’s a Fantastic Business 

My friends told me, “we’re building a very profitable business because it’s very unique. No one is doing it yet. We’ll be the first and we’ll be earning millions! We just need extra capital so we can expand. This is a sure thing!” 

I was seduced by the sizzling business idea that it was a “sure thing.” But today, I realize that great business ideas are a dime a dozen. Every Tom, Dick, and Harry has a great business idea that will make them millions. 

But my mentor always asks, “What’s the execution risk?” 

Unless it’s executed properly, the best ideas flop. 

Don’t invest in businesses that haven’t proven themselves yet. If you do invest, then you should invest an amount that you’re willing to lose. 

4. Don’t Invest Just Because Their Business Is Expanding 

I used to get impressed when an entrepreneur says, “I’m building my 8th branch!” or “We’re now building our Mindanao operations.” 

I don’t get impressed by that anymore. 

I saw a business that grew to 34 stores in its 5th year—but only to collapse on its 6th year. The entire business vanished from the face of the earth. 

Expansion can be an illusion. A smoke screen. A cover-up. The business owner (sometimes unconsciously) wants to hide the fact that his business is losing money—and by expanding—he hopes to earn his money back. 

At the end of the day, it’s their FINANCIAL NUMBERS that will tell you the real health of their business. In other words, their financial statements. 

In one of these “expanding” businesses where I invested money, I was able to get a copy of their financial statement. I handed it over to my Financial Mentor to read it. After looking at it for just 15 seconds, he said, “It’s not a good businesses. Don’t invest in it.” 

But it was too late. I already did. This happened almost seven years ago—when I was still really foolish. (I’m just a little less foolish now!) 

5. Don’t Invest Just Because of High Interest Rates 

In fact, be wary if they offer you high interest rates. 

The very first time my friends offered me to invest in their business, they said, “We’ll give you two percent a month.” 

“Wow,” I said to myself, “Banks only give one percent a year. But they can give two percent a month. Jackpot!” 

That’s why I don’t blame them for losing my money. 

I can only blame myself. 

I was foolish and greedy. I’m wiser now. I realize that very few businesses on planet earth can survive giving two percent a month. 

6. Don’t Invest Just Because They Give Post-Dated Checks 

Post-dated checks (PDCs) are very attractive to the investor. 

Because it’s something physical in your hand. With lots of nice numbers written on it. 

At the start, my friends agreed to give me six post-dated checks for the next six months. Plus a contract to sign. Cool, I said. After six months, they renewed the contract by giving me six more checks.

But later on, when the checks began to bounce, what do I do with those PDCs? Go to court? For crying out loud, they’re my friends. And I don’t like going to court (waste of time, energy, attention, and money). Plus the fact that getting back my money is almost impossible anyway. (They’re bankrupt.) 

7. Don’t Invest MORE Just Because the First Checks Were Good 

For the first few months, even years, the checks will be good. 

And good checks lull you. Because real money is pouring into your pocket. By doing this, they make you think that their business is doing very well. 

I later learned that my friends were already borrowing money to pay for the older investors. This was not their intention. But the pressure to pay old investors (and the fear of litigation) forced them to do this. But this act—of getting new debts to pay old debts—is very similar to a Ponzi scheme. (You should pay old debts with business profits, not with new debts.) 

The entire thing collapses when there aren’t any new investors anymore. 

I invested in four businesses owned by four of my friends. In business #1, the checks were good for five months—and then the checks bounced. In business #2, the checks were good for 12 months—and then the checks bounced. In business #3 and #4, the checks were good for 24 months and more—and then the checks bounced too. Obviously, I placed more money in Business #3 and #4 because I kept investing whenever they needed more money. I was lulled into thinking the business was doing well—when in fact, the entire thing was built on a shaky foundation. 

Again, I’m to blame. I was foolish. I know better. (It takes pain to make you wiser.) 

Resolution: I’ve Simplified My Investments 

I no longer invest in other people’s businesses. 

Today, I’ve decided to keep my investing very simple. I invest in two things only: 

First, I invest in my personal businesses, where I’m in CONTROL of the money and the business. (If I fail and lose, that’s my money I lose. No problem.) 

Second, I invest in the stock market. I buy giant companies of the Philippines. 

Even if I’m not in control, it’s okay, because those who are in control are financial wizards like Henry Sy, John Gokongwei, and Jaime Zobel. When you invest in the best companies in the stock market, you partner with industry titans. 

Because of these two simple decisions, my money has multiplied over the years. 

Keep investing simple. 

And your money will multiply as well. 

I repeat Rule #1 of Becoming Rich: If you earn it, don’t lose it.

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How to Save Health and Wealth

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I am a firm believer that there’s always an exception to every rule. 

As I strictly adhere to applying my advocacy, which is SAVING, I don’t exclude myself from the majority of the population who often indulge in delicious and fancy food servings – which would mean more spent money. 

But, having said this, we can still find ways to economize while doing our eating itinerary. 

Here are some of the basics: 

1. Make a list. When buying groceries, always plan ahead. Check your shelves what needs to be bought. Making a list prevents you from doubling what you already have in stock. List it! 

2. Stick to your list. When in the grocery store, try not to window-shop. Pin your head up and walk ahead. Walk straight! 

3. Do couponing. Use coupons/deals with your necessary purchase, but don’t make your coupons an excuse to buy items that you don’t really need. Coupon it! 

4. Go sampling and do own research and survey. When thinking of trying a new product, always consider a free taste or a free sample because chances are, you might not like the new one. 

If you’re not able to get a free piece, ask friends and relatives if they have already tried the item. Word of mouth almost always is reliable. 

Do your own survey. It’s worth trying first before buying it. It’s like taking any written test, the elimination and multiple-choice types. Choose the best answer! 

5. Bring limited money. Though some may not agree, but this will give you great confidence that you’ll not end up spending beyond your budget. Leave credit cards or any other source behind. Bring only cash that’s intended for your listed purchase. Stick to the budget! 

6. Bulk only when necessary. This is one of the misconceptions that most shoppers think in terms of grocery-shopping. Some think that buying in bulk in almost everything saves money, but in reality, this practice makes you spend even more especially when they are not consumed on a daily basis. 

Cereals, for instance, are a good example to buy in bulk for a family of more than four whose members consume regularly. Perishable items should also not be bought in bulk, unless again, you’re a large family. Limit it! 

7. Consider buying store brands. This is where my big savings come from. I normally buy generic and store-branded products, which I find works just the same as the branded ones. 

Take note, there are times that branded items also go on sale. So, keep your eyes open wide all the time. Be an owl! 

8. Buy refills. Most manufacturers have designed items in sachets or refills. Ketchups and mayonnaise and other condiments are best examples. These are most beneficial especially when you have your own dispensers at home or workplace. Replenish! 

9. Consider combo packs. Again, most manufacturers offer combo packs when they want to launch or introduce new products. But this will also apply to their old products to boost their marketing strategy. 

For example, pasta; manufacturers will combine it with a free pasta sauce and vice versa. So, combo it! 

10. Transfer tin can contents. This tip is not only to save you money but for hygienic purposes. Opened tin cans will create molds and rust inside and out. For instance, for sauces and pastes for making pasta or pizza, make sure to transfer them to a clean and dry container and cover tightly. 

Even putting inside the refrigerator will not stop these fungal growth and bacterial elements from growing and multiplying. So, do you really want these elements to be part of your meal? I don’t think so. Metal out!

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How To Teach Entrepreneurship To Your Child

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“Train up a child in the way he should go; even when he is old he will not depart from it.” (Proverbs 22:6) 

I’d like to discuss on the business of motherhood in relation to growing your wealth. 

I confess that I have been following and doing my best to follow the writings of Mr. Sanchez on how he has been growing his relationship with his boys. 

In my six years of being a hands-on mother, I learned important things on how to raise up the next generation of godly leaders and entrepreneurs. 

Allow me to share it with you. 

1. Spend quality and quantity time with your children. 

I date my boys once a week. It varies from a twohour soccer game with merienda of siomai and gulaman at sago, to a one-hour breakfast over French fries and water, to a bike around the park. During these moments, I get to know their interests, fears, aspirations, and even their love language. 

This is very important most especially when they start to venture into their own fields of interests. Winning the battle of encouragement is already half-won. 

2. Teach them finances by playing board games. 

There are a lot of board games in the market (Monopoly, Cash Flow 101 for Kids, Pictionary etc.) that will harness the bond of parents and children and enhance their financial vocabulary. Through Monopoly and Cash Flow 101 for Kids, for example, at an early age, they will be able to understand and appreciate how money works. An hour a week of game play will go a long way. 

3. Sell and save something. 

Last October, my eldest son, requested to have the complete set of Ninjago (it is a cartoon series of ninjas made from Lego). Instead of giving to his request, I asked him to open his own business to raise funds to purchase his collection. His idea was a home-based massage service. I assisted him in making the marketing paraphernalia (most of which were hand written). We made a list of prospective clients, and in no time he was off servicing clients while I handled his savings. Weeks before Christmas, he was already having a blast playing with his new toys. 

4. Buy insurance. 

This is more for us, dear parents. We can never say until when our children will be able to enjoy our presence. I have a number of friends who went home to our Father, and sad to say, they did not prepare for their demise, leaving their families lost because they do not know where to start. My dear friends, they will live after we leave. I believe that a good policy is a loving gift we can give our families. In addition, there are a lot of products in the market, known as Variable-Unit-Linked products which act as protection and savings as well; an additional portfolio that will put money in our pockets in time. Please ask your personal insurance agent about it.

5. Teach them about our faith. 

Mothers, let’s face it. Talking about God is not normal for us. We would rather talk about the latest news about politics, sports, cars, gadgets, and women. But anything about our faith, we leave it to our spouse. 

I feel it is our responsibility to train them to be amazing dads or moms by being examples of faith. ... when life’s challenges arise, we hold on to God. ... when finances are low, we thank God for the opportunity and ask for His guidance. ... when our plate is bountiful, we share our blessings to our God and His church. 

At the end of the day, we can only supply them the best love, advice and education we can afford. When all is said and done, we surrender their lives to the hands of our Creator. 

It is the best gift we can give to the next generation... the unwavering faith, and love to a God who loves us unconditionally.

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How To Teach Your Child Save Money

Train up a child in the way he should go; even when he is old, he will not depart from it.” – Proverbs 22:6 

Home, being the first school, teaches the very basics of everything about life. It is where the foundation should be well-observed because it is also the place that molds the budding mind of an individual.

Parents or guardians, as the first teachers, should be critical enough in selecting between what and what not to teach.

The scope of what is taught at home differs from what is taught in school, home being practical and school being academic. 

One very good example is on the matter of financial literacy to young children.

Never have I known any school that includes a subject or course in their curriculum about MONEY.

Having said this, parents should take into account teaching the youth about finances at its simplest and practical form for their easy understanding. 

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Here are my 10 basic tips to effectively teach your children about money: 

1. Be a role model. 

Children easily imitate what they see and hear from people they look up to. As parents/guardians, be mindful of every word and action because children are watching you, both consciously and subconsciously. 

2. Talk as a family. 

It is good to talk about topics or issues as a family in your kitchen table, like simple viewpoints about money and saving. Young minds easily absorb basic thoughts upon constant exposure. 

3. Teach simplicity.

Implementation from the very beginning is the key. Seriously to adhere to your teachings and true enough, children will live by them to avoid the “buy this and buy that” attitude. 

4. Show the value of money. 

Kids see money as an object used in exchange for something, but they have to be guided that it’s not always permissible to have this little object exchanged for everything. 

5. Give incentives. 

Make them do simple tasks at home and give monetary incentives in return to keep them motivated. 

6. Do the “Fill-Up-the-Piggy” contest. 

Make them fill their piggy banks the fastest and reward them in exchange for a job well done! Children always love a treat. 

7. Engage them. 

Invite your children to get involved in some of your financial journey. Share your reading materials, books, newsletters, etc. Be open to their questions and answer them from the heart. Connect to them at their innocent level. It is the perfect time to fill their still-evolving minds with information that will shape them for years to come.

8. Borrow money from them. 

Children often times show responsible ownership. They treasure every little thing they know is theirs. Like for instance, toys; they make sure that the set is complete up to the last tiniest piece. The same is true with money. Borrow a portion or any amount from them because they will for sure treat money just the same with their toys or anything that belongs to them. 

9. Teach the “Hard Work Pays” attitude. 

Encourage them to strive more and explore their potentials. CAUTION – Refrain from complaining about money because this will give them the impression that hard work does not pay. Make them understand that whatever the amount is planted is the same amount harvested. 

10. Open bank accounts in their names. 

With parents’/guardians’ supervision, open accounts for them. The small passbooks or ATMs with their names on them will generate a higher self-esteem and a sense of pride and independence. This will make them more encouraged to save. 

Let the little minds be educated with vital things like financial nourishment towards becoming responsible and more mature individuals.

They deserve the best things in life. It is in our good teachings that we will make them remarkably equipped as they grow.

What parents have taught and will teach can greatly affect children on what they will become in the future. 

Give them the best ingredients, so that they can cook the best recipes!

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