Pinoy Business Coach

If the lack or absence of capital is indeed the hindrance to starting your own enterprise then consider the following TRUE STORY:

In the year 2004 Mr. F, retired from his position as a Regional Manager of a Big Bank. As a reward for his long, hard years of service, the company offered him 17 Million pesos as a separation fee (yes,you heard it right- 17 Meelyuun).

Days after receiving this retirement fund, Mr. F, decided to buy one son a high end 4X4 Vehicle, which, if I can recall correctly, was a Brand New Mitsubishi Pajero (check the market price). For the purpose of appeasing sibling rivalry, he bought the younger son also another 4X4 Vehicle, which if I can recall correctly was a Toyota Hi-lux (check the market price). Mr. F also decided to build a 4 Million house, telling himself that it was high time for him to enjoy 'the good life'.

After constantly telling this to himself, one expensive expenditure led to another and the golf games became too many. This too lavish lifestyle took it's financial toll and ss of April 2009, Mr. F's savings have gone down amazingly from 17 Million in the year 2004 to merely just 300,000 pesos at the present time. This would have been a great scenario if the 16.7 Million pesos were exposed to investments and businesses that could have otherwise provided much cash flow to Mr.F's financial statements, but this has not happened. Simply put, Mr.F spent Php 9151.00 Pesos EVERYDAY since he received that huge amount of money.

Although Mr. F held a very reputable position in his bank, he has demonstrated 'poor' management of personal money, as evidenced by uncontrolled spending habits. His financial literacy was not at par with his golfing game, which he did more often and did better. This instant 'presence' of wealth went through the head and directly to the roof. Here is an individual who had tons of money, little financial understanding (regardless of age and experience) and who had no financial plan whatsoever.

This true account is one of those stories that makes you 'sigh' in disbelief. All that money placed in liabilities that go down in value day after day, month after month makes you want to think twice about the delusion that it takes money to make money. Click Here to Read More...

In the past few days, I have been thinking about the word Rich and the context that we, Filipinos place it in. With the poor job that the media (especially Philippine TV) is doing in elevating the mindset of our countrymen, we always see Game shows that involve money being given in large quantities and the concept of getting money into one's hands in a very easy way. These values beset the current generation's attitudes towards money and if this is not tempered, will be transferred to our children's psyche.

It is very common knowledge nowadays that one is deemed rich if one has lots of money. But is this really the only qualification that one needs to be classified 'Rich'. Better yet, is the MERE POSSESSION of money, the only criteria for being Rich?

Not quite. Others have neglected to see that the Rich are also full of bright ideas IN ADDITION TO having money. The Rich are smart and do things in a certain way that produces good financial results, IN ADDITION TO having money. The Rich plan better and have written life goals, IN ADDITION to having money. The Rich think abundantly despite scarce resources, IN ADDITION to having money. The Rich manage finances very well and has lots of LUCK (Labor Under Correct Knowledge), IN ADDITION to having money.

If you haven't realized it yet, money is just AN ADDITION to the Rich Person's mind, action, speech and thinking. It is not money alone that qualifies one to become Rich. One can have lots of money but still think like a POOR person. I am sure that if you trailed the people who won tons of money in WOWOWEE or any game show, most of them if not all have already lost that money and have not put it to good use.

Being Rich starts with the MIND. It is a mindset that is acted in our internal dialogue with ourselves and in the handling of our very own finances. The definition of RICH is therefore not exlusive to the mere possession of money alone. Click Here to Read More...