The author of The Complete Idiot’s Guide to Getting Rich, Larry Waschka, says rich people have common habits and characteristics. Furthermore, a person must be willing to work hard and develop some or most of these habits.
His wealth test (this one is modified for Filipinos) is the most effective for us. This is not scientifically accurate but it could give you a picture of where you are right now and how to make the necessary adjustments. This test works best for professionals and those who are presently employed. Answer each item/statement "yes" or "no".
1. I enjoy my present job.
2. I often visualize myself achieving something bigger that what I am doing right now.
3. I save at least monthly.
4. I make an effort to understand an investment before putting in money.
5. I visit shops/stores before I buy especially for very expensive items.
6. I take care of your home or apartment and perform regular maintenance.
7. I make it a point to pay the whole balance on my credit cards monthly.
8. I am comfortable to buy expensive items (like cars, appliances).
9. I have started by own business (any kind).
10. I have estimated how much money you would need in a portfolio to produce enough income to cover your current living expenses.
11. I measure the performance results of your portfolio at least each quarter.
12. My mortgage payment (or rent) less than 20 percent of your total gross household income.
13. I spend less than you make.
14. I have read materials on building wealth or an autobiography about a very rich people.
15. I have a business that produces a positive net income.
16. I have worked all night or more on a project.
17. My mortgage payment (including rent) is less than 20 percent of my gross income.
For each question that you answered "yes", give yourself a point. Add them up then compare to the scale below.
Score 1-5 - Low probability of getting rich6-10 - Average11-15- Very likely16-17- You are on your way!
Thursday, September 3, 2009
Monday, August 31, 2009
EVEN GRADUATING AND FRESH GRADUATES CAN SUCCEED INITIALLY IN SMALL BUSINESS
I remember a success story of 5 classmates who were working together in a thesis project as a requirement for graduation. It turned out to be a promising business endeavor. They earned extra income on top of their monthly salary in their respective careers.
They pooled the initial capital from their savings (it’s a very small amout). They came up with a list of possible products to sell until a group member suggested a project they did in high school. The business involved making bags out of old newspapers.
The group joined the school bazaar and to their surprise, they generated sales more than they expected. Considering this as a good beginning, the group decided to continue producing the bags in commercial quantity. After the thesis project was finished, the group decided to continue producing the bags and began selling their items in bazaars.
The group saw the importance of having a brand name. They came up with a German-sounding name which means "to weave" in the Dutch language.
They started with simple designs. Later they were able to come up with more sophisticated designs. They added pockets, flaps, buttons and zipper on their bags for functionality and to keep up with the latest trend.
The bags underwent a series of product development efforts in order to be more acceptable to the market. Among these is the use of synthetic leather to make sure that the bags hold well and for durability. Said one members of the group, "Our bags can withstand the test of time. I use this bag all the time and sometimes water gets into it but it survives." The other is when the group discovered a special coating that made the bags not only durable but water-resistant, as well.
While business did not have direct employees, they tap group of housemaids to weave the banig or mat for them. They pay them for every banig they weave. They feel the satisfaction of being able to help them. They even increased the amount they pay every mat they make.
The group also rode with fashion. They wanted to project that their product are eco-friendly. The group is proud they are able to help dispose of old newspapers and encourage the use of biodegradable materials. They create a fashion statement without harming the environment. They said that people who follow the latest fashion buy bags made of animal’s skin or fur, like snakeskin or wool, to achieve a unique look. Their bags will help achieve the same chic and fun look without harming animals and eventually help in the preservation of the environment.
The group is also looking into the possibility of using other recyclable biodegradable materials like magazines and yellow pages of telephone directories. This endeavor makes them realize how much waste they produce and what they can do to earn something out of junks. Using recyclable materials such as newspapers is also cost because they don’t have to shell out a big capital.
The group is looking into the possibility of expanding its product line to like clutch bags, wallets, and purses.
Today their products come in a variety of colors and shapes. The products retail for P300 to P600 per piece. They sell in bazaars and on the Internet through Multiply, a social-networking site. The group also accepts consignment to boost sales.
The former classmates attribute their success to their four years of friendship. They are aware of each other’s strengths and weaknesses and as such they are more open to suggestions without having to worry we might offend each other. They conduct business meetings to be more fun than stressful. They can meet over lunch for business meetings and once business talks are over they can start catching up on their personal lives over coffee or just unwind by watching a movie.
They believe their business is still in its infancy stage. It has the potential to make a big hit in the market because of their unique offering. They are targeting the export market.
If only all business schools will give the same opportunity the five graduating students were given, then not all graduates will join the band of unemployed yearly. If only the government will include entrepreneurship as part of the high school and college curriculum, then graduates will not fear to try self-employment. Filipino youth are survivors and just like in any business, eventually they will succeed.
They pooled the initial capital from their savings (it’s a very small amout). They came up with a list of possible products to sell until a group member suggested a project they did in high school. The business involved making bags out of old newspapers.
The group joined the school bazaar and to their surprise, they generated sales more than they expected. Considering this as a good beginning, the group decided to continue producing the bags in commercial quantity. After the thesis project was finished, the group decided to continue producing the bags and began selling their items in bazaars.
The group saw the importance of having a brand name. They came up with a German-sounding name which means "to weave" in the Dutch language.
They started with simple designs. Later they were able to come up with more sophisticated designs. They added pockets, flaps, buttons and zipper on their bags for functionality and to keep up with the latest trend.
The bags underwent a series of product development efforts in order to be more acceptable to the market. Among these is the use of synthetic leather to make sure that the bags hold well and for durability. Said one members of the group, "Our bags can withstand the test of time. I use this bag all the time and sometimes water gets into it but it survives." The other is when the group discovered a special coating that made the bags not only durable but water-resistant, as well.
While business did not have direct employees, they tap group of housemaids to weave the banig or mat for them. They pay them for every banig they weave. They feel the satisfaction of being able to help them. They even increased the amount they pay every mat they make.
The group also rode with fashion. They wanted to project that their product are eco-friendly. The group is proud they are able to help dispose of old newspapers and encourage the use of biodegradable materials. They create a fashion statement without harming the environment. They said that people who follow the latest fashion buy bags made of animal’s skin or fur, like snakeskin or wool, to achieve a unique look. Their bags will help achieve the same chic and fun look without harming animals and eventually help in the preservation of the environment.
The group is also looking into the possibility of using other recyclable biodegradable materials like magazines and yellow pages of telephone directories. This endeavor makes them realize how much waste they produce and what they can do to earn something out of junks. Using recyclable materials such as newspapers is also cost because they don’t have to shell out a big capital.
The group is looking into the possibility of expanding its product line to like clutch bags, wallets, and purses.
Today their products come in a variety of colors and shapes. The products retail for P300 to P600 per piece. They sell in bazaars and on the Internet through Multiply, a social-networking site. The group also accepts consignment to boost sales.
The former classmates attribute their success to their four years of friendship. They are aware of each other’s strengths and weaknesses and as such they are more open to suggestions without having to worry we might offend each other. They conduct business meetings to be more fun than stressful. They can meet over lunch for business meetings and once business talks are over they can start catching up on their personal lives over coffee or just unwind by watching a movie.
They believe their business is still in its infancy stage. It has the potential to make a big hit in the market because of their unique offering. They are targeting the export market.
If only all business schools will give the same opportunity the five graduating students were given, then not all graduates will join the band of unemployed yearly. If only the government will include entrepreneurship as part of the high school and college curriculum, then graduates will not fear to try self-employment. Filipino youth are survivors and just like in any business, eventually they will succeed.
Wednesday, August 12, 2009
OUR CLASS VALEDICTORIAN (PART I)
I met her when I transferred to a provincial public school. My grandmother advised me to study in the province because I was sickly. It was the best place for me. The air and food are fresh. In my two years of stay in the province, I gained pounds. My classmates called me tabachoy including our class valedictorian, JCM.
I entered the seminary in high school and transferred in a university one year after. (Priesthood was not for me). In college, I decided to be in the same university to keep with family tradition. JCM was in an exclusive school in Katipunan.
A few years after graduation, JCM contacted me in the government agency I was connected with. Our grade school batch was planning a reunion. I got excited because for more than ten years, we would meet again our former classmates and friends.
She fetched me in my office. I was surprised because a BMW picked me up. She was in it, so I asked if the case was hers. She said yes.
We had lunch in an exclusive restaurant in Makati and laid down the plans for the reunion. In the course of the conversation, she mentioned about her problems in her business. “Nakakalbo na nga ako sa mga problema” she said. All medium-scale businesses have those kinds of problems, I told her.
She mentioned that before her business, she joined companies engaged in real estate. She got the idea of starting a business of her own. With the help of friends from nearby school, she put up a real estate development.
It was a family corporation, I guessed, that was the start of her fortune. She was in her early 30’s and this former classmate was already a MULTI-millionaire! The whole batch of graduates were very proud of her.
Now, she had three corporations, a construction company, a development company, and a marketing company. All are related to real estate industry.
What made her achieve such a status? (To be continued.)
I entered the seminary in high school and transferred in a university one year after. (Priesthood was not for me). In college, I decided to be in the same university to keep with family tradition. JCM was in an exclusive school in Katipunan.
A few years after graduation, JCM contacted me in the government agency I was connected with. Our grade school batch was planning a reunion. I got excited because for more than ten years, we would meet again our former classmates and friends.
She fetched me in my office. I was surprised because a BMW picked me up. She was in it, so I asked if the case was hers. She said yes.
We had lunch in an exclusive restaurant in Makati and laid down the plans for the reunion. In the course of the conversation, she mentioned about her problems in her business. “Nakakalbo na nga ako sa mga problema” she said. All medium-scale businesses have those kinds of problems, I told her.
She mentioned that before her business, she joined companies engaged in real estate. She got the idea of starting a business of her own. With the help of friends from nearby school, she put up a real estate development.
It was a family corporation, I guessed, that was the start of her fortune. She was in her early 30’s and this former classmate was already a MULTI-millionaire! The whole batch of graduates were very proud of her.
Now, she had three corporations, a construction company, a development company, and a marketing company. All are related to real estate industry.
What made her achieve such a status? (To be continued.)
Wednesday, August 5, 2009
CORY’S UNWAVERING BELIEF
I watched a live telecast on the funeral of President Cory Aquino. The Manila Cathedral was full of people, people whose lives Cory touched when she was still alive; rich and poor people, people from all walks of life. I cannot believe that the funeral of Ninoy was matched by his wife’s funeral.
What made her, an ordinary wife so popular to people? She tended the needs of Ninoy with all her love. She was not well known during that time. I personally did not know that Ninoy had a wife named Cory. All I knew was Ninoy who was very vocal about inequalities was a champion of Filipinos who would fight for their cause. Ninoy, a hero material.
Then came that fateful day when Ninoy was eliminated. That was the start of the history of Cory. From a quiet, simple, and unassuming wife to a brave, intelligent, and President. Viva Tita Cory!
What transformed Tita Cory? Is it by call of necessity because there was no other choice? No.
Behind the quiet Cory was a woman of strong belief. She strongly believed that she could win over Marcos. Over his well-oiled mechanism and against all guns, goons, and gold. And most of all just like her husband Ninoy, she believed in the Filipinos.
Cory had the character that made her win. She knew that the majority of Filipino people were behind her. And was well-loved by them. A political mechanism, no matter how crude, she had it courtesy of friends and those that believe that she would end triumphant.
If only budding entrepreneurs could demonstrate the way Tita Cory carried herself to victory. Tita Cory strongly believes in whatever she does. Thanks to a lot of prayers, she emerged a winner.
There are many who tried entrepreneurship. It is sad to note that only 3 out of 10 people survive the trials of entrepreneurship. The rest when they experience hardships simply surrender and stop trying. They do not realize that behind the trial is success.
One of the richest American of his time, Henry Ford, believed that the V-8 engine was possible. His associates failed many times and were already giving up. The V-8 engine came out and it became one of the most popular inventions in the automotive industry. Because of the belief of one man that it was possible to build it.
Henry Sy, the owner of the biggest chain of malls in the Philippines, believed that the economic condition in the country would improve. He started Shoemart in the busy street of Carriedo fifty years ago. It was a small store that sold, well, mainly shoes. Business was good during those times when in early 80’s it turned sour. People started thinking of going abroad (including the rich) and some were selling their posh properties at a losing price. But Henry Sy believed that soon the economy would improve. Now it is down, tomorrow it is up. The rest is history for Mr. Henry Sy who is one of the top mega rich Filipinos.
Ninoy and Cory believed in the Filipinos. That is why we redeemed our freedom. If only budding entrepreneurs would have strong belief, then financial freedom can be enjoyed by many of them.
Kaya Natin Ito.
What made her, an ordinary wife so popular to people? She tended the needs of Ninoy with all her love. She was not well known during that time. I personally did not know that Ninoy had a wife named Cory. All I knew was Ninoy who was very vocal about inequalities was a champion of Filipinos who would fight for their cause. Ninoy, a hero material.
Then came that fateful day when Ninoy was eliminated. That was the start of the history of Cory. From a quiet, simple, and unassuming wife to a brave, intelligent, and President. Viva Tita Cory!
What transformed Tita Cory? Is it by call of necessity because there was no other choice? No.
Behind the quiet Cory was a woman of strong belief. She strongly believed that she could win over Marcos. Over his well-oiled mechanism and against all guns, goons, and gold. And most of all just like her husband Ninoy, she believed in the Filipinos.
Cory had the character that made her win. She knew that the majority of Filipino people were behind her. And was well-loved by them. A political mechanism, no matter how crude, she had it courtesy of friends and those that believe that she would end triumphant.
If only budding entrepreneurs could demonstrate the way Tita Cory carried herself to victory. Tita Cory strongly believes in whatever she does. Thanks to a lot of prayers, she emerged a winner.
There are many who tried entrepreneurship. It is sad to note that only 3 out of 10 people survive the trials of entrepreneurship. The rest when they experience hardships simply surrender and stop trying. They do not realize that behind the trial is success.
One of the richest American of his time, Henry Ford, believed that the V-8 engine was possible. His associates failed many times and were already giving up. The V-8 engine came out and it became one of the most popular inventions in the automotive industry. Because of the belief of one man that it was possible to build it.
Henry Sy, the owner of the biggest chain of malls in the Philippines, believed that the economic condition in the country would improve. He started Shoemart in the busy street of Carriedo fifty years ago. It was a small store that sold, well, mainly shoes. Business was good during those times when in early 80’s it turned sour. People started thinking of going abroad (including the rich) and some were selling their posh properties at a losing price. But Henry Sy believed that soon the economy would improve. Now it is down, tomorrow it is up. The rest is history for Mr. Henry Sy who is one of the top mega rich Filipinos.
Ninoy and Cory believed in the Filipinos. That is why we redeemed our freedom. If only budding entrepreneurs would have strong belief, then financial freedom can be enjoyed by many of them.
Kaya Natin Ito.
THE PERSON WHO HELPED MOULD MY VALUES
It was in my last semester in college when I first met him. He was a consultant in one of the government programs that promoted small and medium businesses in the countryside. He was energetic and full of ideas. His enthusiasm is contagious. He is from the Netherlands and he was very bullish about the SME, which, at that time, received very little attention from the government.
It was the regime of President Marcos, who wanted to divert the attention of the youth to a more productive endeavor than in other things.This fellow taught a very important precept in life. . . how we should treat our work in government. He often lectured us that we should always demonstrate the spirit of missionary zeal in our job. This was the first thing that he taught me. Not as source of income but rather an opportunity to be of service to the people without expecting something in return; not as a training ground for potential government executives.
The first shock of our lives came as a result of the fielding patterns of the student. Was that part of the program design? Initially, I did not understand why we from Luzon and Greater Manila Areas have to be fielded in the Visayas and Mindanao. Some in rural areas. I foresaw that communication would be very difficult to most of us. But I was proven wrong. If I were to survive, I have to learn the conversational dialect. “Para dili mabaligya”, the Cebuanos said. In a span of one year, I learned a little more than 100 Cebuano words and phrases. At least, the Cebuanos were not able to sell me. I was very lucky that time because I was assigned in the Beautiful City of Cebu.
Living on a meager allowance, those days were really a challenge. In our communication with fellow students, many said that the allowance that we received was not enough. Being in government, provisions sometimes arrived late (is this still true today). But we managed to survive with the help of our parents. To save on board and lodging, some slept in the town plaza and in bus stations when were looking for and giving assistance to proponents (clients). Some have to sign a promissory note to their landladies just so they will not be ejected from their boarding houses. Majority “enjoyed” the job and some just could not do anything but complain deep inside.
Being young and first time to be away from my family, I learned to live independently hundred of miles away.In the field, we experienced situations that we were not taught while in training. We were taught the technicalities of the actual job but not on the aspects of people and organizational relationships. How to approach private banks and government banks, how to deal with these institutions, how to deal with proponents and the like. Some were exposed to corruption in securing finance, some fought with some big banks because they disapproved our proponents’ proposal, these are some things that brought shock to some of us. Still there are many good stories with our proponents and our bankers.
One thing I learned in the program was “Utang na loob”. Proponents whose projects were approved never forgot to return the favor to us. They would treat us to fancy restaurants or they would bring us to beautiful beaches in Cebu. From the outset, we told the proponents that we would not accept cash from them. The Cebuano proponents respected. We sometimes spent for the reproduction of proposals of some proponents.
Our experiences with bankers are kinda exciting. There was this rural banker who approached us to assist him look for financing. Since it is not allowed for bankers to use the funds of the bank for their projects, we referred him to a local development bank. His proposal was approved. Since then, we developed friendship with this banker. A banker befriending government professionals like us! And this particular banker is only one of the bankers we developed working relationships with.There is this bank that we avoided at that time. The experiences of some of the students with this bank can not be considered fruitful. It was (is?) very conservative and very strict with their policies (some profess that they had good relationship with this bank). And to think that this bank is tasked with helping small and medium industries! (One decade later, some of us joined this bank and one became its Senior Vice-Presidents).
There were many more experiences and lessons learned but I have already forgotten. . . but not the person who made these experiences possible - - - FR. GEORGES PIRON. Fr. Piron, or Ronpi is MASICAP (Medium and Small Scale Industries Coordinated Program) and MASICAP IS FR. PIRON. This program was a brainchild of his and the former President of the Development Academy of the Philippines, Mr. Horacio Morales, Mr. Jose Pardo and some people that I cannot remember (with regrets).
Without FR.PIRON and company, we would have not developed this important value in government work, missionary zeal.It was the Program of Fr. Piron that exposed me and my fellow students to the SME sector. From those experiences we drew further lessons on how to start and manage a small enterprise.
This is for the budding entrepreneurs, for the students who dream of making a small business enterprise a big one, for the wives who painstakingly manage a meager income just to make ends meet and who are now thinking of succeeding in an enterprise, and for ordinary people who are thinking of ways and means to improve their economic lot.
Kaya nating lahat ito!
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