3 Direction: Practical Application Of Financial Literacy Using ESBI

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  • Step 1: Invest 10% in your Eternity.  You’re a spiritual being. You will live forever. When you tithe, you’re declaring you’re merely passing this world and that Heaven is your future home. Step 2: Invest 20% in your Maturity.  Your biggest expense isn’t your car or your home. Your biggest expense is your retirement. You don’t want to grow old and poor. You don’t even want to grow old and rich. (Believe me, thats not fun too.) You want to grow old, rich, and generous. Step 3: Invest 70% in your Family.  Don’t invest in things. Invest in people. Don’t invest in stuff. Invest in relationships. Because the best investment in the world isn’t bonds, stocks, oil, silver, or gold. The best investment in the world is love.
  • Here’s what this formula means: The moment you receive your income, first subtract your expenses, and then invest and tithe from whatever is left.  Question: Is this your main Money Strategy? If it is, be very afraid.   You’ll grow old and poor.
  • Here’s what this winning formula means: The moment you receive your income, you first subtract your Tithes & Investments, and then spend from whatever is left.         In other words, you need to invest in your future before you invest in your present.
  • Two Lines Of Wealth There are two lines that will determine your wealth: Your Blessings line and your Spendings line (or standard of living). Here’s the Law for getting wealthy: As your Blessings grow, your Spendings should grow in a slower way. Do that and you’ll be rich. This is not the case for 80% of the people. Most people grow their Spendings (or standard of living) with their Blessings. Don’t do that! Here’s my personal experience. Through the years, my income has grown. But I didn’t let my expenses grow with it. After years of doing this, I now only spend 10% of my income for my daily expenses. 90% of my income goes to Tithes and Investments. Why? Because I enjoy the simple before the complex.
  • Be Content The Bible says, But godliness actually is a means of great gain when accompanied by contentment . (1 Timothy 6:6) If you want to be wealthy, you need to be content. Some of you might ask, “But Bo, you just taught us to earn as much as we can. Isn’t that the opposite of what you’re saying now?” No, it’s not.  Don’t be content with what you earn, but be content with what you own.  Don’t be content with what you earn because you’re not only thinking of yourself. You want to earn as much as you can because you want to give as much as you can. But be content with what you own. Don’t allow material things to define who you are. Don’t be defined by the watch you use, the clothes you wear, and the car you drive. Be defined by your relationship with God.  You don’t need a Rolex to feel good. You don’t need a Jaguar to feel good. You don’t need an Armani to feel good. I feel good because I’m forgiven. I feel good because I’m anointed. I feel good because I’m commissioned. I feel good because of my God who calls me friend.
  • Be Careful        If you enjoy simple things, you’ll avoid shopping on impulse.        Proverbs says, Plan carefully and you will have plenty; if you act too quickly, you will never have enough.  (Proverbs 21:5) When you go out shopping or marketing, have a plan. Bring a shopping or grocery list. And stick to it. People who don’t bring a list will spend 30% more than those who do.  Say no to impulse buying.
  • Be Credit-Free        The Bible also says that The borrower becomes a slave of the lender (Proverbs 22:7).  I don’t know about you, but I don’t want to become a slave. But anyone who lives in endless debt will tell you that’s their reality. That’s their life. Here’s the horror story: 20% of credit card holders can’t pay their debts. And as much as 70% of credit card holders pay only the minimum each month. That is utter foolishness.        Borrow only for business (and only if you know what you’re doing). But never borrow for consumables. Because being a slave is no fun. If you don’t have the discipline, tear up your credit cards. Here’s the third Rule…
  • Rule 3: Enjoy People Before Things In case you’re wondering, this whole message isn’t about being a miser. I’m not a miser.  And I don’t want you to be a miser. You don’t want to be like Hetty Green. In 1916, Hetty Green was the wealthiest woman in the world. She was a business tycoon who invested in whaling, China trade, railways, and government bonds. But she was a miser. She wore the same black dress and undergarments until it was worn out. She ate mostly pies that cost 15 cents. She instructed her laundry woman to wash only the dirtiest part of her dress (the hems) to save money on soap.  And when she herself suffered from bad hernia, she didn’t like surgery because it would cost her $150. Being a miser towards yourself is bad enough. But she was a miser with her family members too.  This is how stingy she was: When her son broke his leg, she brought him to a charity clinic. But how much was she worth? When she died in 1916, she had $200 Million. Adjusted to our time, she was worth $3.8 Billion. (P167 Billion.) Indeed, the richest woman of her time. But she was not happy. She was called the “Witch of Wallstreet” because she always looked angry and sad. God doesn’t want you to be a miser. God wants you to enjoy your wealth. Here’s the key: Save your money, yes, but spend your money to enjoy the deeper things of life. In other words, enjoy people before things. At the end of the day, it’s people who will make you happy. Save on stuff. Save on things. But don’t save on love.
  • A thought leads to Ideas Idea’s leads to Options Options leads to Decisions Decisions leads to Actions Actions leads to Habits Habits leads to Character Character leads to Destiny Destiny leads to your Reality … What you THINK … is What you BECOME !!!
  • A thought leads to Ideas Idea’s leads to Options Options leads to Decisions Decisions leads to Actions Actions leads to Habits Habits leads to Character Character leads to Destiny Destiny leads to your Reality … What you THINK … is What you BECOME !!!
  • A thought leads to Ideas Idea’s leads to Options Options leads to Decisions Decisions leads to Actions Actions leads to Habits Habits leads to Character Character leads to Destiny Destiny leads to your Reality … What you THINK … is What you BECOME !!!
  • 3 Direction: Practical Application Of Financial Literacy Using ESBI

    1. 1. ESBI MentalityESBI Mentality Journey to Financial FreedomJourney to Financial Freedom
    2. 2. Be Happy Ecclesiastes 5:19 says, If God gives a man wealth and property and lets him enjoy them, he should be grateful and enjoy what he has worked for. It is a gift from God.
    3. 3. What is Financial Freedom? Financial freedomFinancial freedom is much more than having money. It’s the freedom to be who you really are and do what you really want in life. If you want to be financially-free, you need to become a different person than you are today and let go of whatever has held you back in the past. It’s a process of growth, improvement and gaining spiritual and emotional strength to become the most powerful, happy, and successful “you” possible. That is the true reward of financial freedom.
    4. 4. You can take control of your situation, no matter what it is, and enjoy financial freedom. Enjoying the rewards of financial freedom is simply a matter of increasing your financial education and determining where you arewhere you are nownow financially and where you want to gowhere you want to go.
    5. 5. Secrets of the RICH No. # 1 : The RICH understands the Importance of Financial Intelligence B / S I / S Income Expense Assets Liabilities PutsPuts money inmoney in youryour pocketpocket TakesTakes moneymoney out ofout of youryour pocketpocket Cash flowing INCash flowing IN Cash flowing OUTCash flowing OUT Feeds You Eats You Maximize Minimize
    6. 6. Remember These 3 Investments Divide your money into three investments: Step 1: Invest 10% in your Eternity Give All You Can (Tithing) Step 2: Invest 20% in your Maturity Earn & Save All You Can (Invest & Savings) Step 3: Invest 70% in your Family Invest in people … Invest in relationships … • In reality, everything is an investment.
    7. 7. Follow These 3 Rules • Rule 1: Invest in your future beforeInvest in your future before your present.your present. • Rule 2: Enjoy the simple before theEnjoy the simple before the complex.complex. • Rule 3: Enjoy people before things.Enjoy people before things.
    8. 8. Rule # 1Rule # 1 : Invest In Your FutureInvest In Your Future Before Your PresentBefore Your Present Money Strategy Of The PoorMoney Strategy Of The Poor • This method will make you poor— no matter how much money you earn. • Here it is: Income – Expense = Tithes & InvestmentsIncome – Expense = Tithes & Investments
    9. 9. Secrets of the RICH No. # 2 : The RICH don’t work for money B / S I / S Income Expense Assets Liabilities THE POORTHE POOR
    10. 10. Secrets of the RICH No. # 2 : The RICH don’t work for money B / S I / S Income Expense Assets Liabilities MIDDLE CLASSMIDDLE CLASS
    11. 11. Rule # 1Rule # 1 : Invest In Your FutureInvest In Your Future Before Your PresentBefore Your Present Money Strategy Of The RichMoney Strategy Of The Rich • It’s really all a matter of right order. If you do it this way, you’ll be wealthy. • Here it is: Income – Tithes & Investments = ExpenseIncome – Tithes & Investments = Expense
    12. 12. Secrets of the RICH No. # 2 : The RICH don’t work for money B / S I / S Income Expense Assets Liabilities THE RICHTHE RICH (--) Corporate Expenses
    13. 13. ExamplesExamples : Invested in theInvested in the Present Before Their FuturePresent Before Their Future The Story Of Mr. PresidentThe Story Of Mr. President I know of a President of a company who—years ago—I know of a President of a company who—years ago— earned P200,000 a month. This was at a time whenearned P200,000 a month. This was at a time when P200,000P200,000 waswas P200,000. Mr. President had a nice house,P200,000. Mr. President had a nice house, three nice cars, country club shares, and travelled manythree nice cars, country club shares, and travelled many times a year.times a year. He’s now retired and lives a very different lifestyle. No moreHe’s now retired and lives a very different lifestyle. No more nice cars, no more country club shares, and no morenice cars, no more country club shares, and no more money. He now depends on his kids to put food on hismoney. He now depends on his kids to put food on his table. Reason? He is poor today because he used thetable. Reason? He is poor today because he used the Money Strategy of the Poor. He invested in his presentMoney Strategy of the Poor. He invested in his present before he invested in the future.before he invested in the future.
    14. 14. ExamplesExamples : Invested in theInvested in the Present Before Their FuturePresent Before Their Future Scottie Pippen,Scottie Pippen, Michael Jordan’s Chicago BullsMichael Jordan’s Chicago Bulls teammate, earned $120 Million in his basketballteammate, earned $120 Million in his basketball career. But he got bankrupt.career. But he got bankrupt. We think that all NBA players are rich.We think that all NBA players are rich. Here’s the truth: Sixty percent (60%) of NBA players, afterHere’s the truth: Sixty percent (60%) of NBA players, after five years of retirement, go bankrupt. Sixty percent!five years of retirement, go bankrupt. Sixty percent! Evander HolyfieldEvander Holyfield earned $250 Million in his boxingearned $250 Million in his boxing career. But he too got bankrupt.career. But he too got bankrupt. Mike TysonMike Tyson, earned $400 Million in his boxingearned $400 Million in his boxing career. (Just to let you feel the size of that money—that’scareer. (Just to let you feel the size of that money—that’s P17 Billion.) Yes, he too got bankrupt.P17 Billion.) Yes, he too got bankrupt.
    15. 15. Rule # 2Rule # 2 : Enjoy The SimpleEnjoy The Simple Before The ComplexBefore The Complex • Here’s my point. If you’re not going to simplify your life, you’ll find a way to spend your money—no matter how much money you have. • Learn to enjoy simple things. Or else you’ll never earn enough. Key To Wealth: Delay GratificationKey To Wealth: Delay Gratification
    16. 16. Be Content • The Bible says, But godliness actually is a means of great gain when accompanied by contentment. (1 Timothy 6:6)
    17. 17. Be Careful If you enjoy simple things, you’ll avoid shopping on impulse. Proverbs says, Plan carefully and you will have plenty; if you act too quickly, you will never have enough. (Proverbs 21:5)
    18. 18. Be Credit Free The Bible also says that The borrower becomes a slave of the lender (Proverbs 22:7).
    19. 19. Rule # 3Rule # 3 : Enjoy People BeforeEnjoy People Before ThingsThings • God doesn’t want you to be a miser. God wants you to enjoy your wealth. • Here’s the key: Save your money, yes, but spend your money to enjoy the deeper things of life. In other words, enjoy people before things. • At the end of the day, it’s people who will make you happy. Save on stuff. Save on things. But don’t save on love. INVEST IN LOVEINVEST IN LOVE
    20. 20. Journey to Financial FreedomJourney to Financial Freedom
    21. 21. Where are you now ? Where are you going ? 21
    22. 22. Monday, October 7, 2013 23
    23. 23. ESB + ESBI 29.50 Months = 2.4 yrs IF you SAVE and INVEST (ESB + ESBI) 5% = 2.4 yrs of Financial FREEDOM 10% = 4.2 yrs of Financial FREEDOM 15% = 6.0 yrs of Financial FREEDOM 20% = 7.8 yrs of Financial FREEDOM 25% = 9.6 yrs / 30% = 11.4 yrs of Financial FREEDOM
    24. 24. Actual Application of Project HOPE As of 15As of 15thth May 2013May 2013 27 LRM Pastors27 LRM Pastors 15,610 Blue Chip Shares15,610 Blue Chip Shares Market Value @ Php 857 K … withMarket Value @ Php 857 K … with Php 112 K 15% GAIN in 4 months …Php 112 K 15% GAIN in 4 months …
    25. 25. Gained Php 112K in 4 months ..Gained Php 112K in 4 months .. + 15%+ 15% Period : Started Trading from 15Period : Started Trading from 15thth Jan 2013 todate 15Jan 2013 todate 15thth May = + 15 %May = + 15 % GAIN.GAIN. LRM ProjectLRM Project HOPEHOPE (( HHelpingelping OOurur PPastorsastors EEnd well )nd well )
    26. 26. Operating Guidelines & Procedures
    27. 27. Project HOPE – Opening Guidelines & Procedures 1) PH member to fill up Account Information Form & Specimen Signature Form to be reviewed and filed by SO or assigned Sector Accountant. 2) PH member commits to invest SAR _______ / month to be withdrawn upon final exit or termination of work contract or other justifiable reasons as approved by PH Management Team (HP, SA & SO). Min. contribution of SR 200 / month for a Minimum Period of 2 Years. 3) Every month, each PH member gives their contribution to SO or assigned Sector Accountant for recording and fund consolidation then sends FULL collection via bank remittance directly to trading account bank details. 4) SO or assigned Sector Accountant sends scanned copy of remittance receipt to PH Portfolio Manager for fund transfer visibility. 5) Upon confirmation of receipt of remittance, PH Portfolio Manager starts trading (BUYING) Blue Chip Stocks. Sends confirmation of stock purchases to SO or assigned Sector Accountant for PH ledger update. Note: Standard Buying taxes, VAT, & COL broker charges applies. 6) Every end of the month, PH Portfolio Manager sends SOA – statement of account to SO or assigned Sector Accountant for PH ledger update & reconciliation then sends PH ledger worksheet summary to all PH members via email. 7) Project HOPE financial reporting to be published every 1st Sat of Qtr. NOTE : Free Membership Fee for 1st Year. An Annual Membership Fee of SR _____ is still to be agreed / defined for all PH members for sustainability.
    28. 28. Project HOPE - Retirement / Withdrawal Procedures 1) Withdrawals are ONLY during retirement or when the pastor decides to go on exit &/or upon contract completion or termination or any other valid reasons as approved by HP, SA & SO. 2) All PH members requesting for account settlement for retirement will fill up & sign a Request for Withdrawal Form duly approved by his HP, SA & SO. 3) SO or assigned Sector Accountant to receive the Request for Withdrawal Form and validates complete name, bank details & signature and then computes the total investment portfolio of PH member based on PH ledger advising % contribution, name & number of stocks invested and sends computation details to HP, SA & SO for review and approval for payment release. 4) Sends payment details computation to PH member for review and final signature of acceptance & acknowledgement and sends to PH Portfolio Manager for closing (SELLING) the full portfolio investment. 5) PH Portfolio Manager receives the approved RFW and SELLS equivalent shares (based on market value) Approx. 95% of the market value will be transferred electronically to the PH member’s assigned Bank Account or will receive a check from Project HOPE – Account Bearer (HP/SA or SA/SO). Note : Standard Sales Tax, Comm./ Broker Charges, VAT, PSE Transfer Fee, SCCP Fee, PM Fee, Closing Fees applies (Approximately 5%). 6) PH members receives the full payout amount in check (or bank transfer) & retires rich and righteous. 7) PH member writes a testimonial and posts to PH website archives to serve as inspiration to all present & future PH members. NOTE : Church happy , PH member happy, family happy … GOD is glorified !
    29. 29. Standard Trade Charges
    30. 30. Journey to Financial FreedomJourney to Financial Freedom
    31. 31. Monday, October 7, 2013 33
    32. 32. Secrets of the RICH No. # 3 : The RICH mind their own business B / S I / S Income Expense Assets Liabilities (--) Corporate Expenses
    33. 33. Secrets of the RICH No. # 5 : The RICH print their own money No. # 4 : The RICH pays less taxes No. # 6 : The RICH has awakened their Financial Genius
    34. 34. Monday, October 7, 2013 36 BI Triangle
    35. 35. WHAT BUSINESS ? 37
    36. 36. Business Innovators & Builders 38
    37. 37. BIB – Business Profile 1) Core Business a) Real Estate Business (Oct 2011) - Arista Project (RFO – April 2014) b) Financing / Lending Business (Jan 2012) - KSA Operations (On Going) 2)Other Business Plans c) Cooperative Business – 2nd Qtr d) Food & Restaurant Business – 3rd / 4th Qtr e) SPA – Health Care Business f) PHIL - Resorts / Vacation Houses / Others … g) Transport Business – PINK Taxi … 39
    38. 38. 40 Update on Arista Real Estate Business
    39. 39. 41
    40. 40. 42
    41. 41. 43
    42. 42. Actual Pics – ARISTA Project As of 06 Feb 2013 Monday, October 7, 2013 44
    43. 43. Monday, October 7, 2013 45
    44. 44. BIB Cooperative Business BIB Coop Busine ss RF 1 & 2 KO M ICF SB L PO P 1 & 2 SBJ LOJ MC/ AN G SO L 1 & 2 LO V 1 & 2 RO L SO G 1 AO G 1 LO G TO P KO G SO S RO S 1 & 2 KKUH Panda / Lulu Suppli ers SO G 2 AO G 2 CN W AC TS AC TS PS2 3 Oth ers Oth ers Oth ers Oth ers CN W CN W
    45. 45. BIB Business Update as of 15 May - Real Estate Capital = SR 240,000 - Financing / Lending = SR 113,250 - Cooperative Business kicking off - By end May 2013, 1 unit will be fully paid … only 3 more to go. - By May 2014, 4 units RFO – Ready for Occupancy. 47
    46. 46. Where am I ?Where am I ? Where do I want to go ?Where do I want to go ? 48 Security Freedom Poor Rich Active Income Passive income No Work No Pay No Work Yet Paid Less free time More free time ? !
    47. 47. What you THINK … is WhatWhat you THINK … is What you BECOME !!!you BECOME !!! 49  A thought leads to IdeasA thought leads to Ideas  Idea’s leads to OptionsIdea’s leads to Options  Options leads to DecisionsOptions leads to Decisions  Decisions leads to ActionsDecisions leads to Actions  Actions leads to HabitsActions leads to Habits  Habits leads to CharacterHabits leads to Character  Character leads to DestinyCharacter leads to Destiny  Destiny leads to your Reality …Destiny leads to your Reality …
    48. 48. 50 Command those who are rich in thisCommand those who are rich in this present world not to be arrogant norpresent world not to be arrogant nor to put their hope in wealth, which isto put their hope in wealth, which is so uncertain, but to put their hopeso uncertain, but to put their hope in God, who richly provides us within God, who richly provides us with everything for our enjoyment.everything for our enjoyment. 1 Timothy 6:171 Timothy 6:17
    49. 49. Let us Pray ? Let us Pray ? 51

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