29 September 2012

1. FINANCIAL COACHING
SOLID FINANCIAL
FOUNDATION RiCH!!!
...to be TRULY
COACHING
...to become TRULY RiCH!!!

3.  Financial struggles?
 Hunger for knowledge?
o Do you have a mountain of
 Curiosity?
 debt?
Desire to take control of your finances…?
 Dreams, aspirations… problems
o Are you having
makingfinancially independent…
 Of being ends meet?
 Of being more generous… more
o Do you always have
‘month than money’?
 For your family…
 For your relatives…
 For your country…
 For humanity in general…
5/12/2011 RVCS JR TRULY RICH MAKER 3

4. 5/12/2011 RVCS JR TRULY RICH MAKER 4

5. 5/12/2011 RVCS JR TRULY RICH MAKER 5

7. 5/12/2011 RVCS JR TRULY RICH MAKER 7

8. IsMore than 25 Years in USA/Canada &
an independent marketing company whose
associates,15 Yearsits affiliated companies, offer a
through in the Philippines
broad array of financial services and products.

9. OUR MISSION..
Make a Difference for Families
At IMG, you can help make a
difference for families by showing
them a new path toward achieving
their financial goals
No Family Left Behind

18. LEARNING : “ your first gain in any investment or business
must be always financial wisdom, not money.”
Fely Santiago

22. • MISSION: to change the
saying that “the rich get
richer and the poor get
poorer.”
• BELIEF: “the average
person, even the poor, has
an equal chance to become
wealthy if given the RIGHT
INFORMATION.”

24. Investement Advocate/Licensed broker from
Citiseconline

27. IMG Offers Total Financial Solution
• Financial Literacy
 Learn to become your own Financial Adviser
 Learn how to manage your money
 Get out of DEBTs!!! Make money “Work For You”
• Disciplined Approach to Investing
 Develop the habit
 Proper and Solid Financial Foundation
• Direct Access to Financial Services Companies
 Be Your Own Broker
 Earn from your own needs
• Investment and Business Opportunity
 towards PASSIVE INCOME for retirement

28. Money Mistakes among Pinoy’s
• Overspending / Not Living Within One’s Means
 SALE, % OFF / % DISCOUNTS, PROMOTION
0% Interest Instalments, Color Tags
 More “wants” than “needs”
 “Materialism”

29. Money Mistakes among Pinoy’s
• Overspending / Not Living Within One’s Means
 SALE, % OFF / % DISCOUNTS, PROMOTION
0% Interest Instalments, Color Tags
 More “wants” than “needs”
 “Materialism”
• Credit Mismanagement
 Personal Loans, Credit Cards, Mortgages
 Market Manila 2011, Southeast Asian Central Banks 2008:
Philippines has 28% of total household debt in the form of
credit card loans

30. Money Mistakes among Pinoy’s
• Overly conservative in Investing Money
When it comes to financial products, most Filipinos are only
familiar with SAVINGS ACCOUNTS —the basic service offered
by any number of Savings Bank in the neighborhood.
Most Filipinos do not think long term, preferring to save their
cash for what they consider to be immediate and primary
needs, such as health and education.
• Lack of Financial Education
Citibank Survey June 2011:
• Filipinos’ Financial IQ = 48.9 /100
• Filipino’s average savings in reserve = 9 weeks

32. Four basic ways to earn money:
• Employment - When an employee works for an employer and gets
wages/salary in return.
• Self-employment - This means working for yourself that can earn you
money.
• Business - This implies having a set establishment or system that can
churn out money for an individual.
• Investment - This involves making money out of money or in other words
making money out of the accumulate capital.

33. Four basic ways to earn money: In this financial coaching
we will focus on this
Investment Quadrant.
We will learn the ways
on how we can make
our money work for us
so that we can achieve
our future financial
goals.

34. Why do we need to increase our Cash Flow?
… because we have, what we call our
life goals and responsibilities.

35. Goals in life:

36. Life Goals & Personal Cash
Responsibilities Flow

37. 1. Increase your cash flow to match or exceed
your life goals & responsibilities.
Life Goals & Personal Cash
Responsibilities Flow

38. 2. Decrease your life goals & responsibilities to
match your cash flow.
Life Goals & Personal Cash
Responsibilities Flow

39. HOW do we increase cash flow?
1. Never depend on single
income. Make INVESTMENT
to create second source.
- Warren Buffett

40. 2. “Keep your day job, and start a
BUSINESS on the side.”
- Jim Rohn

41. Most people are indebted.
Live simply.
Types of Debts:
 BAD Debts: Debts for Consumables
 GOOD Debts: Debts for Business
Just what Mr. J. Reuben Clark quote that:
“It is rule of our financial and economic life that
interest is to be paid on borrowing money... once in
debt, interest is companion every minute of the day
and night; and whenever you get it in its way or
cross it’s course or fail to meet its demands, it
crushes you.”

42. Bad Debts
• Smart TV using credit card

43. Good Debts
• Van using bank loans for business

44. PHILIPPINES
Market Manila 2011, 2010 data:
45% or roughly 3 million out of 6.7
million cards carry an average of P44,776
in revolving balances ≈ roughly 2 million
out of 6.7 million cards has an average of
P60,000 revolving balances
Market Manila May 2011: Credit Card Overview

45. PHILIPPINES
Market Manila 2011, 2010 data:
45% or roughly 3 million out of 6.7
million cards carry an average of P44,776
in revolving balances ≈ roughly 2 million
out of 6.7 million cards has an average of
P60,000 revolving balances
Market Manila May 2011: Credit Card Overview

46. PHILIPPINES
CURRENT REGIONAL MINIMUM SALARY
(As of November 2011)
NCR: Php 10,224 per month
DOLE: http://www.nwpc.dole.gov.ph/pages/statistics/stat_current_regional.html, NCR: Php 426 per day, 8H/48H/4W

47. o An EMERGENCY FUND is a highly liquid account, such
as checking or savings accounts. This allows quick access
to funds, which is vital in emergency situations.
o The purpose of the fund is to improve financial security
by creating a safety net of funds that can be used to meet
emergency expenses.

48. THE FINANCIAL CYCLE OF A PERSON:
Spend Work
then EMERGENCY situation
occurs… what will happen
now?
Earn

49. with Emergency Fund…
this will help us avoid debt traps
Debts Work

50. 3 - 6 Months equivalent of
monthly expenses
10 - 12 Months equivalent of
monthly expenses
How to start in creating an emergency fund?

51. 1st Concept : PAY YOURSELF FIRST
Expenses
INCOME Debts
Income – Expenses = Savings
Poverty Formula
God Savings Expenses
(10%) (20%) INCOME
(70%)
Income – Tithes – Savings = Expenses
Prosperity Formula
With this, we can fund for sure our “financial plans” completely.

52. Before we build our wealth…
We need protection for assets and life.

53. 2nd CONCEPT : THE X CURVE
Stages of Financial Life
High Responsibilities Low Responsibilities
 Food  Healthcare
 Shelter
 Clothing  Retirement
 Education
STAGE 1
 Healthcare
 Debts/Loans
STAGE 2
INCOME (ACTIVE) INCOME (PASSIVE)
You work hard for the money Money works for You
Low Savings High Savings
YOUNGER OLDER
DIE TOO SOON
Protection LIFE LIVE TOO LONG
Investment

54. Get out of debts before you invest.
Invest safely and correctly.

56. Get out of debts before you invest.
Invest safely and correctly.
How long will it take your money to double in value?

57. 3rd Concept:
The Rule of 72 (LXXII)
Dividing the number 72 by the interest rate of your savings or investments
will give the estimated number of years it will take for your money to double.
72 ÷ 4% = 18 72 ÷ 8% = 9 72 ÷ 12% = 6
Money doubles every 18 years Money doubles every 9 years Money doubles every 6 years
Age 4% Age 8% Age 12%
29 Php 100,000 29 Php 100,000 29 Php 100,000
47 Php 200,000 38 Php 200,000 35 Php 200,000
65 Php 400,000 47 Php 400,000 41 Php 400,000
56 Php 800,000 47 Php 800,000
65 Php 1,600,000 53 Php 1,600,000
59 Php 3,200,000
4X 65 Php 6,400,000
16X

58. RULE OF 72
(from Compound Interest)
COMPOUND INTEREST = the
eighth wonder of the
world, greatest
mathematical invention, and
mankind’s greatest
Albert
invention, because it has a
force for amassing wealth.
Einstein
Albert

59. Wealth Calculator

60. Financial Education
I= Pin
36,000 + 5,000 = 41,000
= 41,000 x 12%
= 4,920
Yearly Update = 45,920
Melvin Flores – My Sponsor
Levi Mateo – My 1st Leg
The Power of
Compounding
Interest

62. oDid you know that money in the
Bank slowly “evaporates” under
the heat of INFLATION?
oYour money shrinks over
time, just like how water dries
up under the heat of the sun.

65. Let’s do the math on this Ligo Sardines example:
Price of Ligo Money No. Ligo
2011 purchased
11.25 100 9
No. Ligo
Deposit Total
2012 Price of Ligo Money
Interest Rate Money
purchased
14.00 100 4% 104 8

66. INFLATION RATE, PHILIPPINES
2005 – 2011
Month 2011 2010 2009 2008 2007 2006 2005
Average 4.8 3.8 3.2 9.3 2.8 6.2 7.6
http://www.nscb.gov.ph/stats/
http://www.nscb.gov.ph/secstat/d_price.asp [National Statistical Coordination Board]

67. How to Beat Inflation?
• Decrease your monthly expenses
• Increase your salary
• Increase the earning capacity of
your money

68. Best Interest Rates on a 1 Year / 12 month
Time Deposit in the Philippines
as of November 2011
Deposit
Account Details
Account
TOP #1 Interest Rate is determined by the amount deposited in
Peso over a 12 month/1 year period.
10,000 - 99,999.99 2.000%
100,000 -299,999.99 2.125%
300,000 - 499,999.99 2.375%
500,000 - 999,999.99 2.625%
1 M - 4.99 M 3.250%
5 M - 9.99 M 3.375%
10 M and over 3.625%

69. Best Interest Rates on a 1 Year / 12 month
Time Deposit in the Philippines
as of November 2011
Deposit
Account Details
Account
TOP #2 Interest Rate is determined by the amount deposited in
Peso over a 12 month/1 year period.
50,000.00-299,999.99 2.65%
300,000.00-999,999.99 2.75%
1 M - 1,999,999.99 2.85%
2 M - 2,999,999.99 2.95%
3 M - 4,999,999.99 3.05%
5 M and over 3.25%

70. Building a Solid Financial Foundation
INVESTMENT
EMERGENCY FUND
DEBT MANAGEMENT
PROTECTION: INSURANCE
HEALTHCARE
INCREASE CASH FLOW
BUILD IT RIGHT. BUILD IT STRONG

71. BUILD IT RIGHT. BUILD IT STRONG

72. People will tell you I don’t have money to invest but …
Shopping P 3000 1 36,000
P 165,120
10 YRS @ 15% = P 4,020,552.45

73. Control the distribution of your estate.
Transfer inheritance to our children.

74. CHAPTER I - ESTATE TAX
SEC. 84 Rates of Estate Tax. - There shall be levied, assessed, collected
and paid upon the transfer of the net estate as determined in accordance
with Sections 85 and 86 of every decedent, whether resident or nonresident
of the Philippines, a tax based on the value of such net estate, as computed
in accordance with the following schedule: If the net estate is:
Over But Not Over The Tax shall be Plus Of the Excess Over
P 200,000 Exempt
P 200,000 550,000 0 5% P 200,000
500,000 2,000,000 P 15,000 8% 500,000
2,000,000 5,000,000 135,000 11% 2,000,000
5,000,000 10,000,000 465,000 15% 5,000,000
10,000,000 And Over 1,215,000 20% 10,000,000
www.bir.gov.ph/taxcode/1889.htm

76. Money is the root of all evil.
10 For the LOVE OF MONEY is a root of all kinds of
evil. Some people, eager for money, have wandered
from the faith and pierced themselves with many
griefs.
1 Timothy 6:10 (KJV)

77. •1 of every 7 verses in the Gospel of Luke
talks about money.
•Jesus talked about money more than He
did of Heaven and Hell combined.
• Jesus talked about money more than
anything else except the Kingdom of God.
• How many parables in the Bible?
• How many talks about money?
11 out of 39 parables

78. 5/12/2011 RVCS JR TRULY RICH MAKER 78

79. “ To be born rich or poor is not a
choice, but to become rich or poor,
that's a choice that GOD leaves
up to us.”
Bo Sanchez

80. END of PART 1

81. 5/12/2011 RVCS JR TRULY RICH MAKER 81