The Basic of Cash Flow

[colorade]

PULOT lang po ito mga kaPT...hope it will help.
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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 dinimanda at nag-piyansa!!! HUWAG MO I-ASA 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 nag pro-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! 

[caligula]

Bago magdown ang PT, there's a couple of members who I think are financial gurus, can't remember their names. Pinaguusapan namin yung online stock trading which may not be a bad investment. There's a bit of risk just like any business endeavours pero mukhang promising and I heard the market is good lately.

Good subject colorade though I will not completely discredit saving a little for retirement through pension plans, GIC and mutual funds. Just get it from a reputable company.

[ShadowShaman]

Try mutual funds... medyo mababa ang returns mga 8-20% pero mas malaki kumpara ilagay mo sa time deposit

[colorade]

Try mutual funds... medyo mababa ang returns mga 8-20% pero mas malaki kumpara ilagay mo sa time deposit

bro pwede mo ba i-elaborate yung mutual funds? parang interesado ako, dun kasi sa time deposit talo ka din ng depreciation ng pera..

Bago magdown ang PT, there's a couple of members who I think are financial gurus, can't remember their names. Pinaguusapan namin yung online stock trading which may not be a bad investment. There's a bit of risk just like any business endeavours pero mukhang promising and I heard the market is good lately.

Good subject colorade though I will not completely discredit saving a little for retirement through pension plans, GIC and mutual funds. Just get it from a reputable company.

plano ko din itry stock trading, medyo pinapalawak ko lang ng konti kaalaman ko tungkol dito at higit sa lahat naghahanap pa rin ng paraan makaipon pang invest.. hehe

[Dimmu Borgir]

Bago magdown ang PT, there's a couple of members who I think are financial gurus, can't remember their names. Pinaguusapan namin yung online stock trading which may not be a bad investment. There's a bit of risk just like any business endeavours pero mukhang promising and I heard the market is good lately.

Good subject colorade though I will not completely discredit saving a little for retirement through pension plans, GIC and mutual funds. Just get it from a reputable company.

maganda nga ito at amganda din yung sa mga bond.. kung may pera ka kesa ilagay mo sa bangko, invest mo sa ganito, kikita ka pa..

sa bond, walang risk pero medyo mababa ang interest..

[mercury]

hindi lahat may sikmura sa risk sa Stocks. try first Mutual Funds (MF), then Stocks.

[angbananas]

very good ionfo boss colorade. thanks

[iamamorion17]

this article is good:) buti na lang me negosyo na ako:)

[hilyfe333]

with every paycheck
you must put away
20% of your income
if you cant do this
you need a better job or one more job

[jasmine]

with every paycheck
you must put away
20% of your income
if you cant do this
you need a better job or one more job

I agree with this one, kaya yung mga kulang or d sapat ang monthly basic need to think.

[Kilayko]

Mutual Fund VS Time Deposit

Both have dis & ad. If the market goes up Mutual fund is awesome though you will know the result if peso is on the brink. whereas Time deposit will depend on the interest rate of the bank, if both of you agreed to 13% for 10 years then that will be it. regardless of peso inflation (unless your bank shut down).

Stock trading needs investment of the mind, not only money. I am not big time "stockist" but it works for me somehow.
You can try this link (COL Financial)

It will provide information on how to study the ups and down, When, What & How to buy and When, What  and How to sell. You will learn to look at the graphic chart, What is EIP (Easy Investment Program), you can even create a 7 day trial.

My two cents.

[monde8]

Nice share. Though I'm already aware of this, it still pays to read stuff like this again to server as a reminder para laging on track.

+karma

[jamesbond]

ang haba ng topic... but very very informative... nice post po

[migzhizon]

Accounting

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[epro250]

- increase your cash flow
- eliminate debt
- have emergency fund
- protection for your life & health
- you can now make your money works for you