FINANCIAL LITERACY

THE RIGHT
OPPORTUNITY WILL SET
YOU FREE
Financial Freedom
 RATIONALE
Everyone has the opportunity and capacity to
save. But the problem is most people do not know
how. It could be due to the lack of discipline in
handling money or to savings just getting depleted
easily. One can come up with dozens of reasons why
it is so hard to save. But one lesson I have learned is
either you make excuses.
I believe that people can gain financial
freedom. This is my vision. Furthermore , my hope is
to see many people financially free by changing
their mindsets and perspective about money and
become effective and responsible enough to handle
their resources properly
John Gokongwei is a millionaire
A Business man
The owner of Sun Cellular
The owner of CEBU Pacific Air Lines
An entrepreneurs

Lucio Tan one of a millionaire person

A Business man
The owner of Philippine Air Lines (PAL)
San Miguel Corporation
Tobacco Corporations
Tony Kaktiong a millionaire
A business man
An entrepreneur
The owner of Jollibee
A foreigner

Henry Sy a millionaire
A business man
An Entrepreneur
The owner of SM Mall
Mall of Asia
A foreigner
Robert Kiyosaki is one of a millionaire
A business man
An entrepreneur
The author of the Rich Dad and Poor
Dad
 Robert Kiyosaki,
Kiyosaki best selling author
of the Rich Dad, Poor Dad series,
started out against network marketing
or MLM. But, after 15 years he made a
complete turn around. He now favors
direct selling with a network marketing
company as the best way for the
average person to move from being
poor to rich.
MODULE 1. THE RIGHT MINDSET

 Mindset Plus Action Equals Results by:

Chinkee Tan.
 Negative Mindset + Negative Action = Negative
Results.
 Positive Mindset + Positive Action = Positive
Results.
a. Why do Filipino parents normally till their
children before they go to school? Study hard
so you can find a good job. Is their anything bad
about finding a job absolutely not.
b. But what do Filipino Chinese
parents till their kids? Study hard so
that you can start your own
business.
Questions:
who do you think will
realize his dreams faster. The one
who look for a job or the one who
start his own business.
MODULE 2. ABOUT MONEY
1. MONEY AS THE ROOT OF ALL EVIL

 Money looks the world go around.

 Money plays a big role in the material world.
 But one can never avoid money if his goal is financial
freedom.
 Is money the root of all evil? Assuming that money is
the root of all evil and it can make you really bad. So
you should empty your pockets and bank account and
start living it away.
 We need money so that you can live longer.
Ex. Rent of important things you do not have,
electricity, groceries, tuition fee, and etc.
 George Bernard Shaw-the lack of money is the root of
all Evil
2. DO YOU KNOW WHAT THE BIBLE HAS TO SAY
 About the root of all evil
a. they love of money is the root of all evil.
b. the love of money more than your family.
c. the love of money more than your self.
d. the love of money more than your
character, and your integrity.
e. the love of money more than your
relationship we consider that the root of all
evil. Ex. A gun of a police man is a tool
3. MONEY BEHIND 80% OF SEPARATIONS

 50% of all marriages fail, and Financial

Freedom is the causes.
 The argument of money.
 Some times the third party.
 I can still remember when I got married in
2008, I did not marry my wife alone but the
whole family
TIP No. 1 = Open only a Joint Account-never having a
separate account. For you to do not cheat your
wife/husband

TIP No. 2= Keep your personal income private

 Don’t let somebody know that you have money

save in the bank.
 That money is intended for the tuition fee of
your children.
 If some of your relatives know and he/she
barrowed money from you, your financial will be
on troubles.
MODULE 3. FOUNDATION OF WEALTH

 To gain Financial Freedom we need to

building a strong foundation of
wealth.
Example: Building a house should be in the
right foundations, coz if it is not in the right
foundations you building your house in the
sand. With a stiff wind, the building is away.
A. MONEY IS A GOOD SERVANT
BUT A VERY BAD MASTER
 Do you know a friend or relative
who used to have nothing, is very
nice friendly and accommodating
hangs out with you often. And is no
favorite Txt Mate.
 Ex. But if success of money strikes
you notice that his attitude starts to
change
Bible said that money is a good servant
but a very bad master.
Ex. If you can give your money and
possessions away, it means that you
still own them. But if you can not
give it away, it means that it owns
you. So be wise in handling our
resources and never allow to
control us.
THE LAW OF OPPOSITES

 Short term goals-refers to achieving

immediate concerns. Such as we will eat
today
 Long Term Goal-covered about things for
the future
 What is the difference between the short
term goal and the long term goal.
 The short term effect is always the opposite
of the long term.
 If you work hard now, you will play later.
 But if you play now, you will work hard later.
 If we do not save today and all we do is keep
on spending , what will happened to us

B. Parable of Stewardships

C. Money matter vis-a-vis spirituality

Fact No. 1: God Owns Everything
Do you agree that God owns everything?
According to the bible, God made everything,
even people. therefore we don’t own anything
but it is God who owns all things.
2. Lord Why Me?
This is common to most people. When misery
and trials in life come, we tend to ask God, lord
of all people why me. But when blessings come
and our prayers are answered, we never ask
Lord why me?
I was always believe the saying that it is better
to give than to received.
Fact No. 2: God Uses Money in three Ways
Tools, Test, and Testimony.
1. Money as a Tool
The way we handle our finances is an indicator
of what's in our hearts.
Show me your bank statement and I will till you
who you are
If your money is making your life easier and
better, it means that you are using your money
in the right way. But if your money is making
your life harder and difficult, it means that you
are using money in the wrong way-Chinkee Tan
MODULE 4. THE BASIC NEEDS
Stick to the Basic
 One basic purpose of the money is to meet your
basic needs, such as food, clothing, and shelter. But
most of the time we mis-used our money for some
things that we want. Like: Cell phone, TV, LCD,
Laptop and other things.

According to John Maxwell

 The wrong Decision at the wrong time is DISASTER
 The wrong Decision at the right time is MISTAKE
 The right Decision at the wrong time is UNACCEPTANCE
 The Right Decision at the Right Time is SUCCESS
Wait for the Best Time

Another lesson I have learned is to “never compare

yourself with other people” because its result a
negative outcome.

When God blesses us with something, he adds no

trouble to it.
2. Money as a Test
Most people fail to realize that money is
both the test and trust from God
[Link] Times
 When I lost my business, and my six digit
income
 I began to question God why
 I've been faithfully serving you
 I’ve been consistently giving my tithe to you.
b. Good Times
God test as not only in times of scarcity, but also
in the time of Abundance, but in a different way.
Apart from God we can do nothing.
c. Live to give
There is another lesson I believe that God wants
to bless and prosper us.
3. Money as a Testimony
Its God's will for you to live in prosperity instead
of poverty. It’s God’s will for you to pay your bills
and not be in debt—By: Joel Osteen
Yes. I do believe in the statement of Joel Osteen.
I believe that God has a plan for us to prosper,
not to be harmed, and to give us hope and a
bright future.
4. My First Time to Give
I started to give. The first income I received was P
10,000, so I gave 10% of it, which is P 1,000. then
true enough, God’s promise came.
5. Can we Rob God ?
Can we rob God? Yes if we read Malachi 3:8, Will
a man Rob God? Yet, you rob me. But you ask,
How do we rob you? In tithes and Offerings
You are under a cause__ the whole nation of
you__ because you are robbing me (Malachi
3:9)
How many times have I experienced this in
my life, I failed to give God what is due him.
Then I experienced losses and damages.
5. God is our Partner
It wasn’t easy for me to give to God because
I was raise and trained to be come a business
man.
Do you believe that God owns everything?
You see, God is so good, fair, and just that he
didn’t ask for 50%. He ask only 10%. And God is
the owner of Everything do you believed on
that?

I WILL
Remind myself that everything comes from God.
Be a good steward of God’s resources.
Be reminded that money is a tool in my life.
Remembers that God tests before he invest.
Remember that giving is the best way to
receive.
 TO DO
Research more on what the Bible says about
Money. Start giving regularly.
Examine my Financial life and where it is
currently.
Determine the area where money is used in
character growth (as a tool, test, or as a
testimony).
Be more of a giver than a receiver. That is a
very good encouragements to each and every
one of us.
MODULE 5. SAVINGS FOR CHANGE

Saving for the Future: Do we have enough?

In 1990’s the average life expectancy of man
was 47 years because of lack of medicines
and technology.
Since then, the average life expectancy has
increased to 76 years.
2050 life expectancy may reach 140 years.
In Life if you Fail to Plan, you plan to Fail.
 DANGEROUS ATTITUDES ABOUT MONEY
In chapter 1, we talked about the foundation
of money. We learned that God owns
everything and that he uses money as a Tool,
Test, and a testimony.
Danger no. 1: GREED
Greed is one thing we have to protect
ourselves from, particularly when it comes to
money.
Actually, greed and poverty are like cousins.
Why? Greed says I want More, I must have
more. I don’t have enough, this isn’t enough
yet.
 How to Find ENOUGH and Apply it in Life
Consider the following when thinking about the
concept of enough and how it to apply in your
life.
1. What are the important things in life and the
main things that make you happy?
2. What do you need to thrive in life-you may be
alive but the question is do you have life?
3. What do you need to survive at a comfortable
level?
4. What do you have beyond this things needed
for survival, comfort, happiness, and thriving?
5. What do you desire that goes beyond
enough—beyond what’s needed for survival,
comfort, happiness, and thriving?
6. If you have don’t want to have more than
enough, can you work less?-it is not how
much money you earn, but how much money
you save-Always remember that.
7. If you worked less, could you be happy with
enough and happier doing another things?
DANGER No. 2: WORRY
Who among us worry about money in life? I
believe that most people worry about money
and hardly any one is exempted.
Worry is come from the old German word
WURGEN-which means STRANGLE

a. Are you a Worrier?

b. Am I a worrier?
Where worry ends Faith begins.
Worry never climbed a hill,
Worry never paid a bill
Worry never dried a tear
Worry never calmed a fear
Worry never fixed a broken heel
Worry never cooked a meal
Worry never composed a song to sing
Actually, worry never work a worthwhile thing
Pumba Said in the movie The Lion King –Hakuna
Matata-means “No worries Here” But we have
to Pray harder.
DENGER No. 3: FALSE SECURITY
Seventy-nine millionaires and eighty-eight
bankers committed suicide in the United
States in one year, proving once more that
the mere possessions of wealth does not
produce happiness or contentment of mind.
If Only-Wealth gives people a false sense of
security. The philosophy behind it is the
more money you have the more secure your
future will be.
My First Car-I bought it in a cash
 True Security-security is a great treasure. No person
can live well without a sense of security. But having
security in the wrong thing doesn’t lead to greater
well-being.
WHAT MONEY CAN BUY
 Money can buy a bed but not a sleep.
 Money can buy a book but not a brain
 Money can buy good food but not good appetite.
 Money can buy a dress but not a beauty.
 Money can buy a house but not a home.
 Money can buy a watch but not time.
 Money can buy a medicine but not health
 Money can buy amusement but not a joy.
 Money can buy a crucifix but not savior.
 WAYS TO INCREASE YOUR CASH FLOW
One of the Major root causes of debt is the
unwillingness to change the lifestyles even
when circumstances in life have changed.
Changed your lifestyle, Spend less. ex. Based
on personal experience 40% or at least 30%
of the budget for groceries go to milk and
diapers alone. If your expenses increase and
yet your income the same then you have to
make adjustment and changed your lifestyle.
Always be Open-Minded for the Opportunities

If changing your lifestyle isn’t enough, it is

time for you to look at opportunities for
other sources of income.
[Link] as much as you can
The main goal and objective in making
money is not for us to spend more but to
save.
We can miss the whole point of working
extra long hours and sacrificing time away
from family.
“Just as some people make enough money to live
comfortably, they want to live extravagantly”
b. Maintain your lifestyle
Eat a healthy food and not expensive.
Control your expenses.
Make value of your money.
If you would be wealthy , think of savings as
well as getting By: Benjamin Franklin.
Saving a part of what is earned, even a small
part, is one way to build true and lasting wealth
Some people said how can i become a millionaire? Lets
start with some easy strategies.
a. Win a lotto-in this case the probability is very low and
the only chance is to buy more tickets.
b. Marry a rich person-this strategy is very popular for a
thousand of years.
c. Inherent Money-you always pray to god that you will
be adopted by: Ayala, Tan, Sy, and Gokongwei
d. Get some Insurance-ensure your spouses-many
people insure different things and some time the
received enormous amount of cash.
Note: Now its time to think a better ways to make a
a million.
“Personally, I believe the best way to become
really rich is to start a business and to start
savings.
Can we save 20.00 a week-P80 a month-P1,000
a year.
Then invest your money to earn a twelve and a
half percent (12.5%) a year. For 40 years and
increased your business a 1,000.00 a year.
Answer: 1,000,000 in 40 years
In savings be willing to start small, always
remember “ it is not how much money you
make but how much savings you saved.
MODULE 6. BUDGETING

HAVE A LONG TERM PERSPECTIVE

 After savings, the next question asked by most
people is where to park the money to grow.
 In using your resources, always think long- term.
a. To meet long term goals-such as savings for your
children's, education or your own retirement.
b. To meet medium term goals-such as savings for
house, car, wedding, or dream vacation.
c. Short Term Goals-such as creating reserve for
emergencies, protection against lost
“Always think Long-Term. The longer the term,
the better off it will be.”

BUDGETING
Very few people bother to budget,
which is why so many people are in debt.
Few really realize just how the end regret the
expenses they have made.
GOALS of Budgeting
What are the goals of a budget? I made an
acrostic of the word called “BUDGET”
 BUDGET
B-for boundaries
 If you know your boundaries and set your limits for your
expenses, you will be able to live with in your means.
U-for unwanted stress and pressures
 Bills and utility expenses should be expected month in and month
out.
D-for Debt Free
 A written budget is a key to succeeding at being debt free.
Minimize your all expenses.
G-for Generate More and Give
 It will help you to determine specifically how much money you
needs.
E-for Eradicate Impulse Buying
 A budget helps you manage your money effectively.
T-for Trust God
 It will help you determine how much more money you need to ask
and trust God.
 HOW TO BUDGET
1. Determine how much You Spend Each Month
 Have you ever asked the question, I’m making
money, but were did my money go? Most of us spend
the money, but we don’t know were it went.
1. Just record your expenses weekly/monthly for a
sheet of paper.
2. Select a Sunday to begin your expenses.
3. Record that Sunday at the top of your paper
4. Carry that sheet of you all the time.
5. Record all your expense you pay for by cash or cash
equivalent –Check, ATM, credit card and other.
6. At the end of the week, put away the sheet and take
out another, begin your expenses for the coming
week.
 at the end of the 8 weeks, list seasonal, annual, semi-
annual, or quarterly expenses you incurred but did not
pay during your two (2) months recording period. The
most common are personal income taxes, property
taxes, car registration and ,maintenance, magazine
subscriptions, tax preparation fees, insurance
payments, and seasonal expenses such as summer
camp fees, or holiday gifts
2. Divide needs versus wants
a. Needs-something that you have to get by in this
world-a necessity. Ex. Shelter, clothing, and medical
care the basic.
b. Wants-on the other hand is something that you
desire-something you would like to have. But you
suffer any way(except perhaps mental anguish if you
don’t get. That fall into the category of Luxuries.
 Here is a list of the said Luxuries:
1. Bed
2. BMW
3. Cable TV
4. Club membership
5. Computer
6. Concert tickets
7. Designer suit
8. Entertainment center
9. Flat-screen TV
[Link] Club
[Link] cream
[Link] apartment
[Link] tickets
[Link]
[Link]
[Link] phone
[Link], rent, shoes, sturbox coffee, water, trip to hongkong.
3. Develop an Envelop System
Developing and living by a household budget is
by far the best way to get your expenses under
control, which in turn can mean a much less
stressful in life.
Be always in mind that the basic needs are food,
clothing, shelter and educations.
Note: in this situations we need that both husband
and wife have a budget agreed. She has 3,000 a
month and I have also 3,000 a month.
And having a 300.00 per day budget for their
recreations and date day.
 CUTTING DOWN THE EXPENSES
One of the most question in my meeting is “
can I still save even if I am just making
enough? again I am go back to the principle “
it is not how much money you make but how
much money you save.
There are so many ways that you can already
save by just cutting down on our expenses.
Ex. You have cable TV in your home, can we
take that off. 500.00 a month multiplied by
12 is 6,000.00 of your budget in a year.
 WHY DO PEOPLE FAIL IN BUDGETING
There are three (3) mean reasons why people
fail in budgeting. First is Laziness, Lack of
discipline , and third is legalism. Lets discuss
each one separately.
1. Laziness
People are discouraged. They are not consistent.
They are not persistent. I tell you, always thing
like Nike-Just Do It.
The problem about budgeting or any other
endeavor is starting something but not
following it through or not sticking to it. Well
that’s the characteristics of a filipino.
2. Lack of Discipline
Have you experienced the time when you where
only making a little? You don’t spend that much
and the budget is just enough.
Ex. I used to have a budget of P 5,000 per month
for my expenses. In order to control my
spending. I simply divided 5,000 by 30 days, that
will be an equivalent amount of P166.66 per
day. That’s what I placed inside my wallet.
I made a decision to discipline my self and stick
to my budget. Sometimes, I hear that small
voice telling me, “C’ mon, you have sacrifice
long enough. Isn’t it time for you to give your
self a treat
3. Legalism
Remember, budgeting is not a law but just a
guide in order for us to determine how to
manage our money well. Never commit the
mistake of being too legalistic and too stiff
with the way you handle your money.
Ex. What if one of my children while playing
bumped his head, had a wound on the
forehead , and had a blood gushing out. My
wife come to me and requested me
FINALLY BEFORE WE END THIS CHAPTER, let me
ask you. Do any of this succeeding statement
describes your finances?
[Link] increasing amount, if not all, of your net
income is going to debt payments.
[Link] pay only the minimum of your credit
card loan.
[Link] reach the credit limit of your credit card.
[Link] pay your bills with the money that was
intended for other things.
[Link] used your credit cards to pay for things
that you used to pay for in cash.
6. You often pay your bills late. You don’t pay
unless you get a disconnection notice.
7. You delay or omits your visits to the doctor,
because your budget is tight.
8. You get calls from collectors or collecting
agencies regarding unpaid bills.
9. You work over time for the second job to
raise extra cash to pay bills.
10. Losing a job will create instant financial
disaster.
11. Money is a constant worry to you.
MODULE 7. DEBT

 Before we talk about how to get out of debt, allow

me to give a definition of debt.
 DEBT-is any money you owe anyone for anything,
whether it is in the form of money, a favor, or a
gratitude.
 Have you experienced being in debt?—I know you
already experienced that.
 What about today? As we all know, people in debt
are no longer sent it to JAIL. However, the physical
bondage is replaced by what we call “Mental
Bondage”
1. MENTAL BONDAGE

 My personal experienced I used to be in debt

around 80,000 pesos we back in [Link] it really
make me difficult to pay that debt.

2. Is Debt a Sin?
 Some people think that debt is a very necessary
financial tool and you really need to use it to get
ahead in life.
 Some people believed that debt doesn't do any good
for anyone, except the Bank.
 It’s like drinking and smoking, this two words are
not found in the bible, but there is not a single
positive reference regarding these habits.
PROVERBS 22:7 says, “ the rich rule over the
poor and the barrower is the servant to the
lender.
Psalm 37:21 says, “the wick barrow and do not
repay but the righteous give generously.
Ex. America now have a 90-year old debts. In
Japan they have now Three Generation Debt.

DEAL WITH THE ROOTS, NOT THE FRUITES

1. Greed-is an excessive desire to acquire or
possess more than what one needs or deserves,
especially with respect to the material wealth.
“There is enough in the world for everyone's
needs, but not enough for everyone’s greed—
By: Frank Buchman”
2. Ignorance
The second root cause of debt is ignorance or
not knowing any better. Ignorance is not an
excuse because in the court, ignorance of the
law excuses no one
3. Impatience
When I say impatience, it is the attitude of
getting what you want right away.
4. Self-indulgence
Last is self indulgence. You want to satisfy
yourself in something that satisfies you for a
moment. You buy something that you really like
only to realize later that you don’t have any use
for it at all.

The problems is not our debt but our attitude.

SOME PRACTICAL TIPS TO CONTROL SPENDING

Avoid exposing yourself to things that tempt
you to spend. Keep away from the stores,
except when you have something you
absolutely to buy.
1. Plan your Shopping, go with a purpose in mind.
2. Limit your number of trips to the mall or
restaurants.
3. Don’t shop in a weekend condition.
4. By shopping when hungry, tired, or depressed,
you may find yourself overspending.

PRACTICE SELF CONTROL

 How do you practice self-control? It’s a slow
process. Decide what’s strategy you are willing
to try. Set some realistic deadlines to your self.
 SOURCES OF DEBT
Whether we accept it or not, money is hard
to make nowadays; at the same time
expenses keep on increasing.
[Link] tomorrow’s income today
There are many ways for us to get into debt.
I find two common reasons why we get into
debt.
Living today is the most important than living
for the future.
We are acquiring the disease called
shoppingnitis.
 HAVE WE EVER FELT THIS WAY?
1. I have an urge to have the latest and the newest
gadgets.
2. I feel envious about others who can afford new
things in life.
3. When I see people with really nice clothes, I
want also to have my own.
4. I felt that I don’t belong, and not accepted by
my peers, coz I don’t have what they have.
5. When I’m upset, I calm down by shopping.
6. I never know where all my savings go.
7. I spend more money on my self than anything
else.
8. I try to find my confidence in how I look.
9. What people say about how I look really
affects me.
10. I'm ashamed if people see me when I’m not
looking my best.

WHY I STARTED SAVINGS

I thank and praise God I came from a
background where my parents taught me the
value of savings and hard work.
 2. UNWILLING TO CHANGE YOUR LIFESTYLE
WHEN CIRCUMSTANCES HAVE CHANGED
The second major root causes of debt is the
unwillingness to change one’s lifestyle even
when circumstances in life have changed.
[Link] for a family meeting
Right away we must get our own feelings
under control and share the problem with
our family.
b. Remember if you lose your capacity to earn
Don’t panic. You can still control your
financial situation if you plan carefully.
Communicate. Analyze what is important
and as a family, decide on a plan of action.
Find other sources of income and look for
other opportunities to earn.
Don’t default on payments. Go to your
creditors, explain your situation, and work
with them to make adjustments.
Be prepared to changed your standard of
living at least temporarily.
Pray there is power in prayer. Pray and
believed that God will help you because he is
a God of miracles.
 TYPES OF DEBTS
Types of Debts are:
1. Consumer Debt.
2. Mortgage Debt.
3. Investment Debt.
4. Business Debt.
5. And Credit Card Debt.
6. Consumer Debt
It is a Financial commitment used to purchase
items that have no substantial resale value or
that depreciate after they are bought
These are funds to pay the off utilities such
as:
[Link]
[Link]
c. Water
[Link]
[Link]
f. Phone bills
g. Hospital bills
[Link] other regular monthly expenses.
2. Mortgage Debt
This is created by a mortgage secure by the
mortgaged property such a house and cars.
3. Investment Debt
Is an obligation that one takes on in order to
free up funds, generate cash flow, and build
wealth. OPM used for Other Peoples Money.
4. Business Debt
Is money barrowed and used to start off a
business or an enterprise. It is desire goods
and services t o consumers usually in an
effort to generate profit or income.
5. Credit Card Debt.
What is credit card? It is what you used
today to buy what you can not afford
tomorrow while you are paying for it
yesterday.

HOW TO GET OUT OF DEBT-steps 7

I will tell you for a fact that getting out of
debt is just like losing weight. Who among as
wants to lose weight?
1. It is the willingness to Pay That Matters
 In paying of your debt, it is not the amount
that is more important. The real issues is
your willingness to pay your debt.
2. Deal with the Root of the Problem

 Again deal with the root of the problem-the

attitude and bad habits that led to
indebtedness.
MODULE 8 – SELF DISCIPLINE

If you are really serious about getting out of

debt, there are practical steps that we can
apply.

D-for decide

It must come to a day of decision. Make a

decision that you will get out from debt. But
before the day of decision comes, ask
yourself some questions.
E-for Empty all your Savings Account and Liquidate
Your Assets.

Its better to empty your savings accounts to pay

your debts than to keep your savings and earn
much less compare to what you would pay

B-for Be Faithful in Paying Your Debts

We have to be faithful in paying off our debts

even in small amounts.
If your debt is P 100,000 and you are earning a
25,000 per month, you have a decision to set
aside an amount to pay your debt.
If you can only afford to pay for him 3,000 a
month, be faithful in going to your creditor and
pay him consistently.
“not the amount that you are going to pay but the
willingness to pay.
T-for Totally Reverse the Process.
We got into debt because of overspending. Now
it is time for us to get out of debt by under
spending.
a. Drinking of water instead of juice
[Link] lunch boxes instead of eating out side
c. Renting DVD instead of watching movie.
 SAVINGS AND INVESTMENTS
Spend less than what you earn.
The first step to financial freedom is spending
less than what you earn and do it for a long,
long time.
1. Invest in the Future.
What is an investment? It is something that we
purchase with the intent to resell for a higher
price in the future.
1. Is a house an investment?
2. Is a car an investment?
3. Is a jewelry an investment?
2. The law of compounding Interest
Someone one asked Albert Einstein, what is
the greatest discovery of the 20th century?
Einstein did not reply with E=mc2. Einstein
answered. The law of compounding Interest.
3. Let us do the Math
What if the early Indians were smart enough
to invest the money at ten percent (10%) the
money is 24$ and let it set there for 300
years and never withdraw it. How much do
you think the value of the money today. It
will be a whooping $62,808,263,908,552.88
over 62 trillion
4. The “Rule of 72”
Einstein is credited with discovering the
compound interest Rule of 72. Referring to the
compound interest rule of 72. it is the greatest
mathematical discovery of all time.
Ex: the rule of 72 is a simplified way of determine
how long the investment will take to double,
giving a fixed annual rate of interest. By dividing
72 of the annual rate of return..
5. Who wants to be come a millionaire?
Who among you would believe that with P20 a
week you can get P1 million returns in 40 years.
FOUR PHASES IN LIFE
 There are four phases in person’s life, and it is important for
us to understand the phases in our lives so that we can plan
well for our future.
1. The first phase is the learning phase.
 You go to school and try to learn.
2. The second is the earning Phase.
 After graduation, either you look for a job or you start your
own business to earn.
3. The 3rd and the most important is the accumulation Phase.
 While you are earning or setting up your business, you start
saving and accumulating already.
4. The 4th and the last phase is the retirement phase.
 This is the goal of the thought and commitment that you put
into saving up for a satisfactory lifestyle.
SIX STEPS TO FINANCIAL FREEDOM
Have you ever wondered how to gain financial
freedom so that you won’t have any worries
about money? Are you spending more than
you are making and going deeper in debt?
Six Sequential Investment Strategies to Financial
Independence.
STEP 1: GET OUT OF DEBT.
Even if you are still in debt but are diligently
and Faithfully paying it.
One day you will be financially free.
The most important is the willingness to pay.
STEP 2: Set Aside Budget for 1-2 months for Emergency
Funds.
 Determine your budget
 If you have P30,000 as monthly budget.
 Then you have to save P60,000
 But do not used your budget unless there is
emergency happened.
 If you touch the amount, make sure to replenish it.
STEP 3: Set Aside another budget for 3-6 for Long-Term
Savings
 If our budget is P30,000
 Then we have to set Aside a minimum amount of
P90-180,000 in a time deposit account so that it earn
a Higher Interest Rate.
STEP 4: Make Major Purchases
This is the time that you are allowed to make
major purchases like a car, furniture,
vacation house.
After the step 3, I went to step 4 and
purchased my car in cash.
[Link] Your Cash Position or Cash Flow
Check how much money you have in your
position.
Start checking on where you can cut down
on your expenses in order to maintain a
positive cash flow.
Sell Some of Your Stuff
If the money is not enough, it is the time to
clean the house and sell some of the items you
have accumulated through the years.
Go Back to Step 1 and Follow the step 2
If we have the Cash Flow now, we use to pay off
our debts and build our emergency funds once
again.
STEP 5: Make Long Term Investments
Long term investments are educational Funds,
pension Funds, retirement Funds, real state
property,etc.
STEP 6: Invest on Speculative Stocks and High-Risk
Investments.
If you have not achieved Steps 1 to 5, do not even
think about Step 6. I believed this step is not for
everyone.
This is only for people who know what they are
getting into.
RULES Of Investments
[Link] NO. 1.
Never invest in something that you do not
Understand no Matter How Profitable it Might
be.
B. RULE NO. 2. The higher the interest, the higher
the risk.
Let me ask you a question. What if someone
comes to you with a good business Investment
Proposal?
You give me your money and I will give you 6%
a month 72% per annum in return.
This is better off than placing your money in
the Bank that only allow you to have a more or
less 3% per annum interest.
Some Question You Need to ask Yourself

Do you understand their business-how it runs

and operates.
Is this investment product registered with the
Securities and exchange Commission?
Does investment match my investment goals?
How will this investment make money?
Dividends? Interest? Capital Gains.
How liquid is this investment? How easy it
would be to sell if I need my money right away.
GREED IS THE NAME OF THE GAME
Although people know that it is a money game,
why do they still get into it?.
One thing that we have to protect ourselves
from is greed! We cannot seem to have enough
in life.
THERE STILL HOPE
Maybe you are asking, Do I still have HOPE?
It is possible for me to be debt free?
If you only know how much money I owe.
Can i still be financially free and live that life
that I dream of?
Yes there is Hope in Life if we put in our hope in
the right Place.
Let us put our hope on someone who will never
leave us nor forsake us, who will never abandon
us in times of need, and who will take care on us
and protect us all times.
There is only one person I can think of, who can
really help us get out of this situation, and the
person is no other than God.
I hope you now understand the foundations of
money, the purpose of money, of budgeting. It
maybe painful at the start but nevertheless start
today and then get out of debt.
GOD is Good All the Time
Thank You and God Bless us All