I just went to see a model unit in my dream city last week. Die Broke: A Radical Four-Part Financial Plan recommends buying your second home first, so I chose the 3-bedroom unit. When I saw the payment scheme… we’ve got a LOOOOONG WAYS TO GO.

We’d probably get a mortgage. How exactly, I don’t know yet. Same as with credit cards, personal loan requirements would require business owners to show financial statements showing profits for 2-3 years. We start operations in 2008 – so the soonest I can get my house is in 2011?

In the meantime, I have to save for a downpayment of $70,000 in 4 or 5 years time, net of inflation. I’ve already cut my expenses to the bare essentials and my level of savings right now isn’t enough to hit that target so my topline has to be adjusted. I have to earn extra and from that incremental, invest 1/3 back into the business, 1/3 in a high-yield investment with a horizon of 5 years, and 1/3 in balanced funds.

If I make an extra $2,000 per month and invest 2/3 or $1,333.33 at 12% p.a., compounded every quarter for 8 years – I manage to get my $70,000 downpayment – but come on, 8 years!!! H01y$(*#$(!!! There must be something wrong with my arithmetic. But I just followed the FV equation in Excel… sigh. Our business better pick up soon.

I’ll be joining a foreclosed properties meetup this Saturday, January 19, 3-5pm at Gloria Jean’s Coffee in Robinson’s Galleria. Maybe that’ll get me some extra moolah.

If you’re interested in viewing the model units and getting your own, you can contact Jean Azucena, Property Consultant at (+63) 927 860 3414

I wish someone had told me or shown me back in college that I should have skipped the weekly movie trip to Glorietta and saved and invested that allowance. It turns out, what I planned for straight from college and into my first job here in the Philippines is very limited compared to what’s expected of me and, in effect, my financial goals and my supposed budget.

Into my first job where I received quite a large salary for an entry-level, I was conscious of spending for the following expenses:

• emergency fund (3 months worth)
• Starbucks coffee every day; Nescafe Ice at Mini-Stop when cash on hand runs out P500/week
• My share for some lunch and dinner dates with JP at Greenbelt or Powerplant Mall P1,000 – P2,000/week
• Nice corporate attire from Black Shop and Zara – because it’s an “investment” at least P5,000 per trip
• Snacks at McDonald’s or Goldilocks or the canteen extra P300/week
• My Smart postpaid mobile P800/month
• SkyCable bills at home, prepaid for 6 months P700/month
• PLDT (DSL Internet and Telephone) bills at home P3,000/month

That shouldn’t have been that much but how come my savings weren’t significant?

1. I spent for what I “needed” (wanted) and then saved what was left over.
2. I left the money in a separate BPI account, which I could easily access online. So I used it anyway if I wanted to buy something expensive.
3. Cut down the take-home treats for those at home (because I have a job! Share the blessing!)
4. I should have decided with my parents which bills I’m expected to share with and the maximum amount I can contribute for: utilities at home, groceries at home, parents’ and aunt’s long-term health care fund, medium-term investments (mutual fund or UIT) for my younger sisters’ education
5. And then, after family obligations, that’s when I can think about splurging for myself and investments for my house or car or retirement, etc.

I didn’t even have my own credit card then, that would have just made my money management a total mess. I can’t begin to imagine how other yuppies I see taking lunch at Greenbelt everyday and using credit can sleep sound at night.

Now you should too open your eyes to the REAL medium-term financial goals for yuppies. It’s not just saving for your wedding or your first child’s education. You have to map out also how you’ll provide for the family that raised you.

Tags: financial goals, financial planning, what should i save for, what should i spend for, college finance, young professional, financial advice, my first job

Jobs after school and CPA boards and behavior from childhood. Oh, what to do with my life?

It’s hard to find work you love; it must be, if so few do. So don’t underestimate this task. And don’t feel bad if you haven’t succeeded yet. In fact, if you admit to yourself that you’re discontented, you’re a step ahead of most people, who are still in denial. If you’re surrounded by colleagues who claim to enjoy work that you find contemptible, odds are they’re lying to themselves. Not necessarily, but probably. – Paul Graham

When I was a young girl, I would go to the mall with my mother (a rare occasion) and merely content myself with window shopping. When I would buy, I would make sure I had good grades first for bargaining power and I would get a book or something “practical”. I don’t remember asking for Barbie or toys or trinkets. That’s not to say I didn’t like looking at them though. I was a miser child.

I never learned gymnastics or figure skating and had only one ballet class. I really enjoyed watching exhibition sports and I have this deep yearning of being the one performing and competing. I knew though that ice skating lessons were expensive and I thought only the pretty popular skinny girls are entitled to do those sports. Looking back though, I was quite slender myself, it’s just that I had dark skin, so there was the whole self-esteem-fair-girls-are-supposedly-prettier issue going on. So I held myself back.

I did get to try acting for a while. I loved performing on stage. I like singing too but have been too shy to perform in public (karaoke is OK!). I even wanted to try out for Ang TV (a local Nick’s “All That” in the 1990s). My mom wouldn’t let me go to the auditions though.

I’ve been good at debate, swimming, and chess but something was missing. Piano and web design are skills that I tried and built on for a while but gave up when I saw that there other’s more gifted. When I tried finance at an international bank, I was doing spreadsheets and cost analysis but something was missing too. When I was at Unilever, there was no mentorship and I’d have gone into finance too, ergo, something was missing too. The Nu Skin business was okay but, aha, you guessed it, something was wrong too.

(Now you’re thinking – Marie, you just have to get yourself some experience! You’re so arrogant! Why don’t you content yourself with these really good opportunities others can’t even imagine!)

My mom says there is no perfect workplace. I think that the workplace is where you work. It’s where YOU work – it’s not the place that works you. YOU are the one who’s doing so isn’t it logical to believe that YOU have the choice?

Studying my behavior from childhood and reading up on polarity and the universal laws have guided me to realize that I have been messed up – by myself and by my environment. I want to polarize. I need to polarize. I choose to positivize. I need to be in a position where I could give to people, have an impact in their lives. That’s why I loved acting, writing, speaking, and leading.

That’s what’s been missing! In finance as a support service, whatever effort I was giving only benefits the internal customer, then it’s diluted from him to all the other stakeholders. (They should teach this in ORIENT3 career counseling class.)
Many people get by never really deciding whether they want to give, give, give or to take, take, take. Let’s say writers. In a perfectly polarized world, Writer A is driven to create beautiful stories – and then he’s compensated some way. Conversely, Writer B wants to gain prestige and get fees or royalties – so he writes. What happens when Writer A = Writer B? Now that’s messed up. You don’t know which motivation is driving what effort but the writer will most likely get by. This is what happens ordinarily.

I’m a CPA. CPAs play an important role in regulation and transparency of businesses. They provide value by offering a thoroughly studied opinion. It will take a number of years to do the actual signing of the audit opinion though. Before you earn that privilege, you have to foot, do sampling, spend sleepless nights (and wasting your beauty, health, and youth) checking stacks upon stacks of invoices, receipts, and bank statements. The benefit you provide as a junior goes to to your senior associate and from him it’s diluted to the partners, the clients, SEC, and the public. You can’t see the smile on the client’s face (IF ANY). Thank God, I didn’t listen to the elders (some even top business leaders) who say “Go to SGV! You’re young! You should gain experience…” I’d reasonably expect I would have been miserable if I’d gone to audit. I do hope my friends who are in audit feel motivated and inspired where they are. Apparently, it’s just not me.

So, I think a call center job could work. OR setting up a business. Or being a writer (like here!). Or acting (where you can see the delight or dismay yourself – not diluted!). When you’re an account executive, you service a client or customer directly. Something in relationship management, client service, or training could more likely click for me.

It would be best if I can apply what I know of economics/finance/accounting to provide value to others. In time, I’m seriously considering personal financial planning. I would guide others in creating and building wealth! The field is just so beautiful to me.

How about you? Do you know what you want to do with your life?

In an easy and relaxed manner, in a healthy and positive way, in its own perfect time, for the highest good of all, I intend $1,000,000 to come into my life and into the lives of everyone who holds this intention.

Chris Gardner says, “You got a dream, you got to protect it. People can’t do something, so they wanna tell you that you can’t do it. You want something, go get it. Period.” If you’re like most people I know, you have other hobbies or dreams that you’ve dreamed of doing as a child but never got to because of “practical reasons”. You have bills to pay and siblings or children you have to send to school. That house isn’t going to buy itself and you have to pay your parents back for their investment in you.

You need to think more clearly about the things you want in life. Don’t just think of doing better this year so you can get a positive performance review and possibly get a salary increase next year. There’s something else you can do.

Do you think a million dollars would make you happy? $1,000,000. That’s P50 million. We can talk about how to manage it in my next posts but, first, if you get this windfall, will it make your problems go away? For now, let’s think about all the good things that come with getting the $1,000,000.

Intend for the $1,000,000 to come to you. Say it with me – loud and clear.

In an easy and relaxed manner, in a healthy and positive way, in its own perfect time, for the highest good of all, I intend $1,000,000 to come into my life and into the lives of everyone who holds this intention.

That wasn’t so hard, was it? Steve explains why it’s worded exactly that way. You have to say it aloud just the way it says.

See. Do. Get.
You envision your goals first and clarify how you view the world or your paradigm. This affects what you do and subsequently what you get!

Maybe you can fine-tune your seeing first before blaming your boss, the world, your parents, your boyfriend, the government, because you don’t have what you want.

Manifest your intention.
You have a choice now. Just because I believe I can and will have a million dollars doesn’t mean you can’t. This is why I’m writing. I’m asking you to believe that you can. You have nothing to lose and a million dollars to gain by believing and manifesting your intention.

If you believe you have or want to have at least some control over your life, let’s work together. Let’s choose to be financially free. To start seeing, join the million dollar experiment. To start doing, we can discuss options so leave me a comment.

Technorati: dream, goal-setting, million, million dollar experiment, steve pavlina, million dollars, manifestation, intention, intention manifestation, dream big, begin with the end in mind, millionaire, personal development, financial freedom, financial education,chris gardner, pursuit of happyness