Lyn fc part1

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29 September 2012

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Lyn fc part1

  1. 1. FINANCIAL COACHING SOLID FINANCIAL FOUNDATION RiCH!!! ...to be TRULY COACHING...to become TRULY RiCH!!!
  2. 2.  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
  3. 3. 5/12/2011 RVCS JR TRULY RICH MAKER 4
  4. 4. 5/12/2011 RVCS JR TRULY RICH MAKER 5
  5. 5. 5/12/2011 RVCS JR TRULY RICH MAKER 7
  6. 6. IsMore than 25 Years in USA/Canada & an independent marketing company whoseassociates,15 Yearsits affiliated companies, offer a through in the Philippines broad array of financial services and products.
  7. 7. OUR MISSION.. Make a Difference for Families At IMG, you can help make a difference for families by showingthem a new path toward achieving their financial goals No Family Left Behind
  8. 8. LEARNING : “ your first gain in any investment or business must be always financial wisdom, not money.” Fely Santiago
  9. 9. • MISSION: to change the saying that “the rich get richer and the poor get poorer.” • BELIEF: “the averageperson, even the poor, hasan equal chance to becomewealthy if given the RIGHT INFORMATION.”
  10. 10. Investement Advocate/Licensed broker from Citiseconline
  11. 11. 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
  12. 12. 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”
  13. 13. 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
  14. 14. 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
  15. 15. 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.
  16. 16. 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.
  17. 17. Why do we need to increase our Cash Flow?… because we have, what we call our life goals and responsibilities.
  18. 18. Goals in life:
  19. 19. Life Goals & Personal CashResponsibilities Flow
  20. 20. 1. Increase your cash flow to match or exceed your life goals & responsibilities. Life Goals & Personal Cash Responsibilities Flow
  21. 21. 2. Decrease your life goals & responsibilities to match your cash flow. Life Goals & Personal Cash Responsibilities Flow
  22. 22. HOW do we increase cash flow? 1. Never depend on single income. Make INVESTMENT to create second source. - Warren Buffett
  23. 23. 2. “Keep your day job, and start a BUSINESS on the side.” - Jim Rohn
  24. 24. 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.”
  25. 25. Bad Debts• Smart TV using credit card
  26. 26. Good Debts• Van using bank loans for business
  27. 27. 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 balancesMarket Manila May 2011: Credit Card Overview
  28. 28. 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 balancesMarket Manila May 2011: Credit Card Overview
  29. 29. PHILIPPINES CURRENT REGIONAL MINIMUM SALARY (As of November 2011)NCR: Php 10,224 per monthDOLE: http://www.nwpc.dole.gov.ph/pages/statistics/stat_current_regional.html, NCR: Php 426 per day, 8H/48H/4W
  30. 30. o An EMERGENCY FUND is a highly liquid account, suchas checking or savings accounts. This allows quick accessto funds, which is vital in emergency situations.o The purpose of the fund is to improve financial securityby creating a safety net of funds that can be used to meetemergency expenses.
  31. 31. THE FINANCIAL CYCLE OF A PERSON: Spend Workthen EMERGENCY situation occurs… what will happen now? Earn
  32. 32. with Emergency Fund…this will help us avoid debt traps Debts Work
  33. 33. 3 - 6 Months equivalent of monthly expenses 10 - 12 Months equivalent of monthly expensesHow to start in creating an emergency fund?
  34. 34. 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 FormulaWith this, we can fund for sure our “financial plans” completely.
  35. 35. Before we build our wealth…We need protection for assets and life.
  36. 36. 2nd CONCEPT : THE X CURVE Stages of Financial LifeHigh 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 YouLow Savings High SavingsYOUNGER OLDER DIE TOO SOON Protection LIFE LIVE TOO LONG Investment
  37. 37. Get out of debts before you invest.Invest safely and correctly.
  38. 38. Get out of debts before you invest. Invest safely and correctly.How long will it take your money to double in value?
  39. 39. 3rd Concept:The Rule of 72 (LXXII)Dividing the number 72 by the interest rate of your savings or investmentswill 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
  40. 40. RULE OF 72 (from Compound Interest) COMPOUND INTEREST = the eighth wonder of the world, greatestmathematical invention, and mankind’s greatest Albert invention, because it has a force for amassing wealth. EinsteinAlbert
  41. 41. Wealth Calculator
  42. 42. 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
  43. 43. 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.
  44. 44. 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 Total2012 Price of Ligo Money Interest Rate Money purchased 14.00 100 4% 104 8
  45. 45. INFLATION RATE, PHILIPPINES 2005 – 2011Month 2011 2010 2009 2008 2007 2006 2005Average 4.8 3.8 3.2 9.3 2.8 6.2 7.6http://www.nscb.gov.ph/stats/http://www.nscb.gov.ph/secstat/d_price.asp [National Statistical Coordination Board]
  46. 46. How to Beat Inflation?• Decrease your monthly expenses• Increase your salary• Increase the earning capacity of your money
  47. 47. Best Interest Rates on a 1 Year / 12 month Time Deposit in the Philippines as of November 2011 Deposit Account Details AccountTOP #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%
  48. 48. Best Interest Rates on a 1 Year / 12 month Time Deposit in the Philippines as of November 2011 Deposit Account Details AccountTOP #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%
  49. 49. Building a Solid Financial Foundation INVESTMENT EMERGENCY FUND DEBT MANAGEMENT PROTECTION: INSURANCE HEALTHCARE INCREASE CASH FLOW BUILD IT RIGHT. BUILD IT STRONG
  50. 50. BUILD IT RIGHT. BUILD IT STRONG
  51. 51. 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
  52. 52. Control the distribution of your estate.Transfer inheritance to our children.
  53. 53. CHAPTER I - ESTATE TAXSEC. 84 Rates of Estate Tax. - There shall be levied, assessed, collectedand paid upon the transfer of the net estate as determined in accordancewith Sections 85 and 86 of every decedent, whether resident or nonresidentof the Philippines, a tax based on the value of such net estate, as computedin 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% 5,000,00010,000,000 And Over 1,215,000 20% 10,000,000 www.bir.gov.ph/taxcode/1889.htm
  54. 54. Money is the root of all evil.10 For the LOVE OF MONEY is a root of all kinds ofevil. Some people, eager for money, have wanderedfrom the faith and pierced themselves with manygriefs. 1 Timothy 6:10 (KJV)
  55. 55. •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
  56. 56. 5/12/2011 RVCS JR TRULY RICH MAKER 78
  57. 57. “ To be born rich or poor is not achoice, but to become rich or poor,thats a choice that GOD leavesup to us.” Bo Sanchez
  58. 58. END of PART 1
  59. 59. 5/12/2011 RVCS JR TRULY RICH MAKER 81

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