OFW Ka Ba? Pakibasa Mo Ito.

This may be an old article -- I received it in my e-mail about six months ago -- but it is quite interesting so let me share it with all of those who might be interested.
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My Dad is a Broke OFW (open letter to all OFWs)
by Trace Trajano

Kumusta na kabayan!

First, I would like to thank you for being an OFW. My dad used to be an OFW and I know the many sacrifices you are enduring right now just so that you can provide the best for your family. I admire you, I appreciate you and in my book, you are a true Pinoy hero.

Second, I would like to help you. I would like to help you in the same way I helped Bobet, a former OFW. Under my coaching, from being broke and in debt, in just 12 months Bobet became a millionaire. Bobet is in fact back in the Philippines. He no longer needed to work as a nurse here in the U.S. He no longer misses his wife and kids. He can now kiss and hug them everyday. He has achieved in 1 year what most OFWs will never achieve in their lifetime. How did he do it?

I taught Bobet the Secrets of Wealth. And if you want to be like Bobet, read on because I want to teach you the Secrets of Wealth as well. But there’s a catch. You will only understand the Secrets of Wealth by understanding how my dad, an OFW like you became broke.

I’ve experienced as a child what I call a roller coaster of wealth. In Tagalog, we call this “Gulong ng Palad” (Wheel of Fortune) because there are times we’re on top of the world and there are times we’re at the bottom. When my dad comes back from abroad it is like a fiesta. The alcohol is overflowing. The whole town seems to be at our door step and my dad’s pasalubongs never seem to run out. Packets of cigarette. Bottles of whisky. Chocolates for the kids. Jewelry for my mom. It is like we’re millionaires every time my dad goes home.

But we’re millionaires only for a short time.

Two weeks later, the money’s gone. My mom and dad start to argue. And my dad seriously considers going back to the ship. He borrows money from his mom – my grandmother (we call “Nanay”). One time, my mom and dad even asked me to borrow money from Nanay because both of them were already turned down. I guess that tactic worked because Nanay couldn’t say NO to his apo and we ate dinner that night.

Then things turn for the worse. The many friends who cheerfully greeted my dad’s homecoming are no longer around. Instead, creditors start hounding us, pounding at our door. At 8 years old, I am taught to lie and tell the creditor my mom is not around even though she is just there beside me kneeling and praying the creditor goes away.

From feeling like millionaires for a few days to being dead broke 2 weeks later – describing it as a roller coaster or a wheel of fortune is an understatement. My mom and dad managed to squander all their savings and more.

So 2 months later, my dad is back at the airport again. We have tears in our eyes once again as we bid him goodbye. My dad would have to work hard on a ship 10 months in a year mostly to pay off our greedy lenders and creditors.

My dad tried to invest – buying a tricycle but the business became bankrupt as fast as it was started. My dad recalled that tricycle with pride in his voice “It was the first stainless steel tricycle in our town”. He was proud of the product but he did not take the time to understand the business.

There were many days our home is literally dark because we couldn’t pay for the electric bill. Once, as a 9-year old boy, I was devastated when I saw my books have been sold so that we will have food on the table that day. Then the worst happened: we lost our home to foreclosure because there was no money left to pay for the mortgage.

Is the story above familiar to you? I bet most OFWs have the same lifestyle cycle as my dad. Rich one day then broke another.

Have you discovered the Secrets to Wealth in my dad’s story?

At its core, it really is very simple. You will be wealthy if you do the exact opposite of what my dad did.

Don’t waste your money by throwing a lavish home coming party for the whole town – SAVE your money instead. Have a small gathering with your family and loved ones. Your children will appreciate it more because they want your presence more than your presents. Get into the habit of saving at least 10-20% of everything you earn. The earlier you get that habit the wealthier you will become or the faster you will become a millionaire.

Bobet saves 50% of what he earns. No wonder he has become a millionaire in only 12 months.

But you cannot save your way to millions. You have to learn how to invest your savings. My aunt who used to work as a bank clerk, who earned 1/10th of what my dad earned as a seaman is now a multi-millionaire because she learned to invest her money. Your savings must go to “work” for you. They must produce good returns or profit. But you cannot stop there. You have to reinvest your profits so that your wealth can grow exponentially.

My aunt started a business butchering chickens in the wet market (palengke). She saved half of her profits and lived off the other half. She then put her savings to buy a store. The profits from the store and the chicken business were then invested into a farm. The profits from the farm, the store and the chicken business were then invested into a resort. The profits from the resort, the farm, the store and the chicken business were then invested into apartment buildings.

As a result of saving, investing, and reinvesting her profits, my aunt becomes richer and richer even as she works less and less while my dad because of spending, borrowing, then spending becomes poorer and poorer even as he works harder.

The choice is yours. Bobet chose to become rich and he put in the time to learn and apply the Secrets of Wealth. Bobet is now in the Philippines employing 30 people because of the businesses he started. 30 families now rely on Bobet because he applied the Secrets of Wealth and Bobet is proving you can become wealthy even back home.

I like you to be wealthy my friend. But the choice is up to you.

Dedicated to your success,
Trace
P.S. Please forward this to every OFW you know – in fact, forward it to everyone you know for that matter. Everyone needs to learn and apply the Secrets of Wealth.

Trace Trajano is a real estate investor, author of the best selling book “Think Rich – Quick” and a wealth coach to students around the world. His vision is to create directly or indirectly 1 Million Pinoy Millionaires worldwide by the year 2020. Trace himself is an OFW living in the Ohio, United States with his wife and 2 kids.

THE BASICS OF CASH FLOW

I received this article in my e-mail through the Binangonan Tambayan yahoo group. According to the sender:

"Simple and funny but true... See article below, from an unknown author daw."

Well, the following article is actually written by Mr. Butch Salvador -- a former pastor who is now making waves with his business ideas. I am an avid reader of his posted articles. I have even added him in my Yahoo Messenger list some time ago as I was then thinking of asking details about his Spa Magic business.

Anyway, here goes the article. Please read on...


THE BASICS OF CASH FLOW
by Butch Salvador
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There are those who e-mailed me asking about the basics of cashflow. I'm really sorry that I assumed everybody already understands it. Anyway, by demand ... here it goes...
May isang bata... joke lang.

The basic is... What pattern do you see if you will get a P100.00 bill and monitor where and how it is transferred from 1 possessor to the other? How does it flow? The pattern for a typical Pinoy is: You earn from your work, you spend it on food, gadgets, clothing and other basic needs. Before you reach the next payday, paubos na yung pera mo. But that's ok payday is just a few days ahead and it doesn't matter if I run out of money, I am expecting money again any time soon.

This cycle goes on and on and you make some sidelines or create other ways to earn but it seems that money was never enough. (I am tempted to explain further pero usapan... basics lang). So you can't leave the job that you have because a week without work would affect the cash flow you have to support your family and needs. As much as you wanted to accept another job, the gap would make you pay less for a couple of days, which makes you a slave to your boss. At least, you have a job to support your needs. So to illustrate.. .Cash is flowing inside your pocket.
Years have gone by doing your monotonous routine.

Question... what if you get fired? Or you were forced to retire because there are new and younger people ready to take your place. What would you do?

As an OFW, Makati Executive, Top Salesman, Engineer, Attorney, Teacher, etc... What if it all ends? The sweet cash that enters your pocket every 15 th and 30th suddenly comes to a halt. There are two things you can buy with your money... An asset and a liability. To describe each... An asset brings money inside your pocket; a liability takes money out of your pocket.

Another way to see, it is that an asset if you buy one, will bring the money you spent for it back to you 2 or 3 folds. A liability, when you buy it will not give your money back at all. Sa ilocano... idjay ti kwa... djak maawatan... (joke lang po, seryoso na kayo eh...) Sa madaling salita... kapag asset, maibabalik ang pera , pag liability, goodbye sa pera...

Ang problema kay JUAN DE LA CRUZ, habang may trabaho ipon ng ipon at bili ng bili ng liability! I have seen OFWs get back to the country with gold chains at kung pwede lang limang shades ang isuot ng sabay-sabay gagawin nya eh... dvd, component, jackets, clothes, inuman, pulutan, party, pabango -- hindi na makalakad sa dami ng bitbit...

At s'yempre mga empleyado natin dito sa bansa na lingo-lingo bago cell phone at mags ng kotse… hindi na nga magkasya ang damit sa aparador, tapos pag umaga sasabihin...wala na akong maisuot.
Guys, esep-esep... what you bought... will it bring money back to you? I know what you have in mind... you have to enjoy what you worked hard for. That's right, but think of something that will last... think of your future.

I have seen the worst of people who were abogado de kampanilya, executive secretaries of top rank business men, people who worked for big companies, earned a fortune and got a big retirement pay by the millions... Now... Wala na.

Why? Because of their cash flow... went in... went out.

I need not to mention basketball players, actors, singers, etc... Check what is their career path... next after acting, singing and playing... POLITICS. Kasi, 'yung million na kinita nila, puro liability ang binili.

Going back... all the liability they bought, ibinenta ng mura! I'm wearing a gold chain now, which I got from a seaman... he bought it for P35,000 and sold it for 8,000 to me. Hindi po asset ang alahas! Bakit? Totoo na tumataas ang value n'ya pero kapag gutom ka na, kahit palugi ibebenta mo! (wala bang aaray?) Cell phones... dvd players etc. pati bahay at kotse... that's the cash flow of most OFWs...

The question is ... "WHAT IF THE INCOME STOPS?"

Sa Pinoy, ganito: anak... mag-aral kang maigi, at pag tanda namin... ikaw na bahala sa amin ha.... Hindi po ba maling-mali. ..

You have to establish something today that will take care of your future.

Teka, teka... eh ano ang dapat gawin para hindi mangyari yan?

You must create a source of income that will continually make money flow inside your pocket. Start a business! While you are working as an executive or an OFW, or a professional. .. START A BUSINESS and MASTER that business till you get out of that company. Para kapag tumigil ang income mo sa kanila... may susuporta pa din sa iyo hanggang pag-tanda mo!

Now don't tell me to invest my money on pensions and plans... NO WAY! Narinig n'yo na siguro yung... Naku ayaw ko na magbanggit... 'yung mga nagbayad at hindi nakapag-claim. Sila pa ang idinemanda at nag-piyansa! !!

HUWAG MO IASA ANG PAGTANDA MO SA IBA! GUMAWA KA NG SARILI MONG BALON NG PERA! KAHIT MALIIT PA 'YAN, SARILI MO AT HINDI KA AASA SA IBANG TAO...

Imagine yourself when you reach an older age... (aruy ko,,, baka yung iba sa inyo about that age... tabi tabi po...Ako po sa mga nagtatanong. .. I'm 37 years old. Naabutan ko pa si Michael Jackson at hinele po ako ng nanay ko sa mga kanta ng hagibis...). You have money that the company gave you as your retirement pay... what will you do? You can consume the money till your old... eh kung hindi umabot? Masamang damo ka pala... at hindi ka kaagad kinuha ni Lord. Eh pang age 65 lang yung naipon mo na budget.

Or maybe, you can start a business and use the money for capital... Kapatid... 9 out of 10 businesses, FAILED... yung isang magsa-succeed, gagayahin pa ng kapitbahay mo instead na mag-franchise sa 'yo... think! At age 50, you are struggling trying to make a business work! What if it fails?!

Eh ano nga ba ang sagot?

The answer is, stop buying liabilities and instead buy assets now. I don't care if it is a banana-Q store, balot, ice candy or a sari-sari store, etc... start now! Because your experience here will teach you what to do in the future. It's so hard to struggle in business when you are 60 yrs old.

You have to create a source of income separated from the source of income from your work. That when the time comes that you have to stop working, you will have your own source of money! Create assets, start a business that will be there to support you and your family. I AM NOT TELLING YOU TO QUIT YOUR JOB! I'm telling you to start a business while you're working and stop spending your money on liabilities and start putting them on assets!

Ang pera kapag pinambili mo ng LIABILITY... hindi na babalik... ang ASSET... BABALIK. Teka... masama ba bumili ng mga magagandang gamit? Hindi! Siguraduhin mo lang na ang pambili mo nun ay galing sa asset mo. The business has to be prioritized! Mawalan ka man ng trabaho, may negosyo kang palalaguin.

If before, nabubuhay ka naman ng iisa sapatos mo, huwag mo baguhin 'yun... dati, nagdyi-jeep ka lang... 'wag ka na munang mag-FX...

Create assets and lessen liabilities. Invest and learn now... mag-negosyo! Eh anong negosyo? Any, as long as you think it is work and doable! I am still looking for partners for my HOME MASSAGE SERVICE! SPA MAGIC! And my business CAR MAGIC is still franchising. .. (joke lang ... baka sabihin nyo nagpro-promote lang ako eh...But I AM PROUD TO SAY THAT ALL MY BUSINESSES ARE ORIGINAL AND ALL ARE GRAND ASSETS!

I started all my businesses with a very small capital. If I used that money to buy a gadget, new shoes or any liability... baka wala lahat ng negosyo ko at wala na akong makain ngayon. Again, I hope that this BASIC CASH FLOW article helps.... I wish all of us become financially free!