Don't work smart, work hard

In order to have big income, we think of working hard so that we will earn the amount of income we desire.  But what I learned is that working hard is not good enough because if you work hard, this means you have to pay that with your time.  You have to work 100% of yourself, meaning, you didn’t leverage your time. Working hard may affect your life. You can’t enjoy life.

Why I said so?

 Because it might affect your health. You will be stressful because of the responsibilities especially for those holding high positions and risks. Your time will be consumed and therefore, will lessen your time with your family and friends. In short, you cannot enjoy the fruit of your hard work.

In achieving your goals, or if you really want to achieve financial freedom, you have to work smart. Working smart, not harder, is an age-old adage, and if you master the concept, your entire work life will be easier and productive.

Now, if you wonder how to work smart, you might consider the steps below to start with.

Be alert if there is an opportunity.

How will you read this “OPPORTUNITYISNOWHERE”.  You can read that as “Opportunity is no where” and   “Opportunity is now here”. So, how can you distinguish for the right opportunity? If you are not alert, you might miss the opportunity. Sometimes people missed an opportunity because they won’t try especially if it involves money. They are afraid of losing money. What if the opportunity is not true? But in a positive side, what if this is really an opportunity? Hmmm…. Think, think, think…

Think as an entrepreneur.

If you think you have capacity of being an entrepreneur, then start a small business while you are working. You can hire people to work for you and leverage your resources through them. You can delegates a certain tasks to them; thus, you multiply yourself and time. Another option is that, being involved in a multilevel marketing. An MLM company offers a very affordable capital to start a business that gives you an unlimited income. You can directly sell the products and gain profits, and/or introduce the business to two of your friends which is the minimum requirement and earn a commission, teach them to introduce also the business to their friends and so on and so forth. The company will give you a commission even you are not the introducing the business for as long as under your network. So even you are working or sleeping, the people under your network will work for you. That’s leveraging, the tactics of business taipans and taicons.

Be financially intelligent.

If you are financially literate, you would determine asset and liabilities. You would acquire things that would put money to your pocket and not the other way around. You can prevent buying things that a “poor and middle class” person thinks it is an asset which is actually a liability.

Work for passive income.

While you have a job, you can eventually working for a passive income, meaning you will eventually letting your money work for you. As time passes, this passive income grows. If you have extra money, you can invest it to time deposits, mutual funds, uitf, stock, bonds, treasury bills/bonds. These investment instruments will give you a passive income over time. You may also consider being involved in a multilevel marketing company.

So, if you working smart, you are actually changing your quadrants from either an Employee and/or Self-employed to either Big business owner and/or Investor of the Cash flow quadrant.

So, enjoy life! You can work hard BUT work smarter. J

The power of exponential income

How do you earn your income? If you are an employee, you’re just earning a linear income, meaning your income depends on the time you spend for your work. This is a limited income. You are doing 100% of yourself. If you won’t work, no money flowing in your pocket.

For example, if you are earning Php 80 pesos per hour and work for a maximum of 160 hours per month will give you a maximum income of Php 12,000 pesos per month or Php 144,000 per year. Well, having this income is not bad for a single and a middle class person. But, why put a ceiling of your earning power where you can earn more than that?

However, if you use the power of exponential income, or when you multiply yourself and time, you could earn five to hundred times more in that same twenty-four hour period. Having an exponential income is just like having the combination of a linear, residual, leverage, and passive income. Having this income is the difference between the poor and the rich. The poor or the middle class contented only on having a linear income while the rich is always duplicating their self and time. This explains why rich people can make 100 times more money within 24 hours than the poor.

Many people have the perception that only rich people can duplicate their self or earn exponential income because of their businesses. This is absolutely not! They are just applying the law of leverage to gain exponential income.

You can have an exponential income whatever professions whether you are a doctor, a teacher, a garbage collector, a software programmer, et cetera for as long as you know and appreciate the power of duplication.

For example, like the business tycoons like Henry Sy, Lucio Tan, John Gokongwei, they are applying the power of duplication by expanding their business nationwide and by employing thousands of people thus giving them an exponential income.

If you think you need a big amount of capital in order to have a business that will give you an exponential income, well, it is not true. You can consider being involved in a legitimate networking company. This will give you an opportunity to maximize your income through the use of internet. You can reach people anywhere in the globe and be part of your group. Therefore, if happens that even if you’re not working or sleeping, you still earning money because the people under your group is working for you, because if they earn, you will also earn. That’s the power of leverage.

So, now you know how great is having an exponential income, do you still want to continue to put a ceiling of you earning power? It’s your choice.

What type of income do you have?

As you read this blog, you are already earning income, right?  But what type of income? If your goal is to be financially free, you must know what income do you have now and try to make a change that will lead to be free financially. Determining what kind of income now can help you make a better decision concerning the way in which you want to make your money in order to achieve your dreams. Below are the four basic types of income. There is no right or wrong, it’s all about preference. It’s your choice. As you review them, you will be naturally drawn toward the type(s) the appeal to YOU.

1.) Earned Income. This is also referred to as linear income. This is where your income is directly proportional to your time allocated. You are paid based on your time. In other words, you’re trading your time for money. A very good example for this is your salary. You work 8 hours a day and be paid for that duration of time. Or for a business (usually service business) that required of your presence. If you don’t work, you don’t get paid.

2.) Residual income. This is the income that you gain by doing something once, and then reaping the financial profits over and over again without any further effort on your part. Example: Royalty income – a percentage of a previous sold product that has a re-occurring income like a singer, an author, a real estate property returning rental income such as apartment. Having involved in a legitimate network marketing program is another source of residual income in which you have to build a group and that group will give you percentage of their income.

3.) Leverage income. Income that you gain in combination with the combined efforts of others. If you multiply yourself, time, and money through others, you are leveraging. Thus making you a leveraged income. When this people earning money, you can also earn money. The more people under you, the more money you earn. That’s the Power of Leveraged Income. A very good example for this is being involved in MLM business.

4.) Passive income. Any time of income that doesn’t require you time (or very a little of it). Example: Investments, high interest bearing accounts, MLM business, being an affiliate member. A residual income can be also falls in this category.

Now that you already know the different types of income, what type of income do you have now?

The law of leverage

Leverage, what is this word mean?  When it comes to mechanical, it is said that leverage is the action of a lever to act effectively. A positional advantage in which we are going to use something easy that helps us transporting objects that is beyond our capacity. The very good example of this is the use of a pulley that will help us to put object into higher level without using 100% of our effort. Another thing is the use of push cart that helps us transport objects in to one place in easier way.

When applying it to business/income, leveraging is the secret of the rich people around you. They use other people’s time, money, and effort for their business. This is what leveraging is. Multiplying yourself, money, and time in order to achieve you desired income or goal. As what Paul Getty, the first Billionaire said…  
  

          I'd rather use 1% of 100 people's effort rather than 100% of my own.     

Here in the Philippines, businessmen like Lucio Tan, Henry Sy, and others leveraging their self by employing hundreds of thousands of people to work for them and expanding their business nationwide. Thus, multiplying their time and effort to them.

A common example for this is the MLM company or Multi-level Marketing company (a.k.a Networking). The capital for this business is very affordable yet it can give you huge and unlimited income. It can give you an active and passive income. Active income happens when you are working and building your group. You will be compensated if there is someone willing to invest under your group. Then, after that, you can have your passive income. When these people will start earning, you can also receive a percentage of their income doing nothing. In this process, you are multiplying yourself, money and time to them, thus, making huge money and help achieve your dreams, and their dreams, too, because you introduce to them the business. Aside from this, the MLM company provides free training on how to market the products.

The first book that I read is “The Law of Leverage” This book enlightens me and helping me realizing and appreciating how great leveraging is. I advise you should read this book

I really appreciate the law of leverage. How about you, how do you leverage yourself?

My financial story: Continuation

After a few months of working on that company, opportunity comes. It is an opportunity I haven’t expected.  

What opportunity?

 I got a chance to work abroad.

This was what happened. It was unexpected because it was not my plan to work abroad. I didn’t plan to apply job in abroad. But, because of my co-worker, he encourages me to pass an application; he pushed me to pass an application. Taking an exam for that company, that was on November 2005 and luckily passed. Since the company urgently needs a worker, the company advises to the agency that whoever finish/comply the requirements as soon as possible will be deployed first. Am just lucky I able to immediately comply their requirements through the help of my Auntie (financial aid). I was deployed last January 2006.

Working there for three years is an unforgettable working experience and was a great help of my family. I got enough savings. But since I don’t have an idea on how to handle money, my savings earning only 300 pesos for a period of year. Imagine for a big amount of money stock on a savings account, will earn only that amount? So pity.  If only I have known how to invest it, my money will earn more or less 50% gain.  But anyway, that was charge for my experience. So, for OFW out there, better to know the ways & means on how to invest now while working there.

Another thing was, I failed to contribute my government benefits such as my SSS, Pag-ibig, Phil Health contributions. Imagine, for three I have zero contributions for my retirement plan. And if I able to contribute for that, how much savings do I have now? If I did it before it’s surely I am enjoying now the benefits like loans. I wasted my time and money. L I cannot return the time. In this experience, it’s really true that TIME is GOLD. So, for OFW out there, be sure to continue your savings retirement plan contribution. Time is our ally.

Now, working again here in the Philippines, living again in a payday-to-payday life. But it’s not too late for me because I already thinking on how to have an extra income, invest, and making ways to work money for me. Making extra money if I have an extra time like this. J

For my next posts, we will be discussing ways an means on how to grow our money.

See you in my next post. J

My financial story

After my graduation in college, the only thing that inside in my mind is to look for a job.  Nothing else. Of course, for fresh graduates, that’s the only thing that comes in their mind, including me, right? Why is it so? Because the only thing teaches by the school (even our parents) is to become an employee, that after graduation, we should look for a job.  We are trained to become an employee. They enhance our skills and intelligence in the preparation for being employee. We are told to have good grades so that after graduation, we will land a good job with higher salary. And if that happens, we’ll be having a comfortable life and plenty of money. Well, good for those who have achieve this one.

For those graduates who already knows on how to handle their money, good for them especially for those students taking up business or management course. But of course, not all of those students taking business related course and management; know already on how to grow their money. There are still graduates of this course who are illiterate in managing money.

In my part, I land on a minimum paying job. Well, having a minimum wage is not enough especially for married people, lucky I am not. J During those days, I didn’t complain yet that I got a job with minimum wage since that was my first job. I was just happy that even if I am receiving a very low salary, I still able to send an allowance to my  sister who are  still in college good for two weeks and remaining is my allowance just enough to reach the next payday. (Feeling comfortable enough coz my mother won’t bother anymore in giving allowance to my sister.) This is the life of being an employee – living from payday-to-payday.

After a few months working on that company, an opportunity comes.

What was that?

Click Here!

Well, that will be discussed to my second post. J



My first blog

Hello! Welcome to Pera Mo, Alagaan Mo. 

Like you, I also wanna learn on how to create money online, on how to take care of our hard-earned money to grow, what are the ways and means to do it grow.

This blog will be discussing on how to take care and  invest your money. Will  also discuss my thoughts and experiences about investing. I will also discuss earning money online soon. But let's just do it one step at a time. 

Maybe you already have your means on how to take care of your money, but I know you will learn something new about this blog.

After reading my articles, you are free to comment, ask, suggest, clarify, or leave a message, and I will do my best to answer it . If you like the article, you are free to share this with your friends. You can also bookmark this page so that it will become easy for you to visit or come back to this page.

So, see you in my next blog.