3. THE RAT RACE CYCLE
WHY MOST PEOPLE STRUGGLE FINANCIALLY
YOUR HARD EARNED MONEY
I N C O M E
W O R K
YOU WORK SO HARD FOR THE MONEY
B I L L S
YOUR RESPONSIBILITIES
L I F E S T Y L E
IMMEDIATE GRATIFICATION
Every peso you spend it goes to somebody else pocket! This is where
Most people have lost their hard earned money
N O S A V I N G S
Living Beyond Income
Spend Everything You Earned
D E B T / L O A N S
Housing Loan * Car Loan
Credit Card * Salary Loan
Appliances Loans, etc.
THE RAT RACE
Enjoy Now
Regret Later
4. SENIOR CITIZEN SURVEY
• 2% FINANCIALLY INDEPENDENT
• 30% CHILDREN AND RELATIVES
• 20% SSS AND GSIS PENSION
• 8% CHARITY
• 40% STILL WORKS
5. No Savings
Big Savings
Less RESP.
Big RESP.
INCOME
Food
Shelter-Housing Loan or Rent
Clothing
Education
Health
Debt/Loan
What If you Die Too Soon?
Food
Shelter
Clothing
Health
Debt Free
What If you Live Too Long?
You work hard for Money Money working for You
LOI - Living On Interest
Taking care of your FAMILY Taking care of your FUTURE
PROTECTION INVESTMENTS & LTC
HEALTHCARE
EMERGENCY
FUNDS
AGE Line
YOUNGER OLDER
- Temporary
6. THE RULE OF 72
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
65
47
29 29
47
47
65
65
38
56
53
59
35
41
Php 100,000
Php 200,000
Php 400,000
Php 800,000
Php 1,600,000
Php 3,200,000
Php 6,400,000
Php 100,000
Php 200,000
Php 400,000
Php 800,000
Php 1,600,000
Php 100,000
Php 200,000
Php 400,000
4X
16X
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
Simple lang pala ang magpalago ng pera!!!
7.
8. BUILDING A SOLID FINANCIAL FOUNDATION
Like building a house, you must build it from the ground up.
HEALTHCARE
SHORT TERM & LONG TERM CARE
PROTECTION
LIFE INSURANCE
ELIMINATE DEBTS
EMERGENCY FUNDS
INVESTMENTS
INCREASE CASHFLOW
BUILD IT RIGHT, BUILD IT STRONG.
1. Earn additional income 2. Manage expenses
9. What is your SAVING Formula?
INCOME - EXPENSES= SAVINGS
100% - 110% = - 10%
PROSPERITY FORMULA
INCOME- TITHES = EXPENSES
100% - 10% = 70%
- SAVINGS
POVERTY IS NOT LACK OF MONEY;
POVERTY IS MISMANAGED MONEY
- 20%
PAY YOURSELF FIRST!!!
It is not what you earn, it’s what you keep.
The Four Obstacles to Building Wealth
1. PROCRASTINATION
2. Spending Habits
3. Inflation
4. Taxation
