Monday, May 30, 2016

Invest 30 Percent (or More) of Your Income Into 3 Specific Funds

           Last week, I urged you to live only on 70% of your income.
           So what will you do with the 30 percent that you don't spend?
           You deposit it into 3 Funds.

           First is an Eternity Fund.
           This is your greatest investment with out-of-this-world eternal returns.
           This is your tithe to God. 
           Give 10 percent of your income to this fund.
           Where do you give?  I urge you to financially support your spiritual family—so that they can continue to support your spiritual needs—and bless the world.

           Second is your Emergency Fund.
           You need this when the house roof leaks and needs repair.
           You need this when the baby gets sick and needs hospitalization.
           You need this when the car breaks down and needs a major overhaul.
           You can't put all your savings in your long-term investments such as your money in the stock market, properties, and business. 
           You need some money in the bank.
           So put 10 percent of your income into an Emergency Fund—and make it reach at least three to six months of your monthly income. Once it reaches this amount, you can divert this 10 percent into your third Fund below…

           Third is your Emancipation Fund.
           You put 20 percent (or more) of your income into this fund.
           I've noticed that Filipinos love putting their savings in piggy banks, Pringles cans, mayonnaise jars, and under the mattress.
           Believe me, nothing will happen if you leave them there.
           I strongly suggest your Emancipation Fund is invested in the Stock Market.  If you know how to do it, investing in the Stock Market is the safest and most effective way of long-term investments in the world. 
           What is your goal?  When your passive income is equal or bigger than your expenses, then that's when you can say, "I'm free!”

           Question: Do you have an Eternity Fund, an Emergency Fund, and an Emancipation Fund?  Which should you work on more?

           May your dreams come true,

           Bo Sanchez
The Law of Duplication Works in Your Income Too

If you duplicate yourself, you duplicate your income.
It's very simple. 
When you duplicate yourself, you increase the number of people you serve. When you increase the number of people you serve, you increase your income.
If you don't duplicate yourself, your income remains stagnant. 
And even if it does increase, your income only enjoys linear growth. If you duplicate, your income enjoys exponential growth.

Employees Who Duplicate Get Promoted

         Do you want to be promoted in your job?
Duplicate yourself.
As an employee, duplicate your output. Duplicate your production.  Duplicate the great results you're getting.
How? Find a way. Use your ingenuity. Use your creativity.
As a manager, duplicate yourself by training your staff until they can replace you. Believe in them. Raise them up. Develop them. Make them better than yourself.
         Some are afraid to do that. "Bo, if I do that, they won't need me anymore and fire me!”
         But if your boss is intelligent, the opposite will happen. She'll recognize your leadership. Because only leaders can duplicate themselves. And leaders rise to the top.
         I can hear you now. "But Bo, that's the problem. My boss isn't intelligent!”
         Remember what I said before? If your present boss won't recognize you, another person will. Word about your leadership will go around. People will talk about you. And you'll be promoted, perhaps not in your company now, but in another company. Or in your very own company. 

A Second Job

         I'm not a great fan of getting a second job to increase your income, but I need to mention it here. It's also duplication.
         When you go to the States, it's very common to meet Filipinos who hold two jobs. They work 16 hours a day, not counting the travel time to go to work.
         My friend does that. She sleeps three to four hours a day just to be able to hold two fulltime jobs. She drives a brand new BMW. Yes, she earns more because she has duplicated herself by having two jobs. But it's a weak way of duplicating.
Today, that friend of mine is sick. Her body is caving in.
         My advice? This should be a temporary situation.
         Move on to a better way of duplicating yourself...

Two Kinds of Income

         There are basically only two kinds of income in the world:
         Active Income and Passive Income.

1. Active Income

How do I define Active Income?
You exchange your time for money.
A skilled laborer exchanges one day of work for P500.
A manager exchanges one day of work for P5000.
A dentist will pull your tooth for P600.
A heart surgeon will do a bypass for P300,000.
What do they have in common? All of them exchange time for money.  When they stop working, they stop earning.
Let me give you an example.
Remember my story of Ate Guy?
Ate Guy is the terrific masseuse of my wife who offers massage and torture at the same time.
Lucky for her, there are enough deranged people in the world who want that type of massage. Like my wife, for instance.
So Ate Guy is always in demand.
She can massage five clients a day—and she usually does.
Because of this, she earns P50,000 a month.
But let's say she takes a vacation.
Her earnings drop to zero.
And when she gets older, let's say she doesn't want to work this hard anymore. Instead of five clients a day, she wants to massage only two people a day. But if she does that, her income will go down a lot.
Or what if Ate Guy wants to earn P100,000 a month?
She can't massage 10 people a day. Sure, she can raise her prices, but by only so much.
My point? Active income is limited.
The only way to earn more is by switching to passive income. 
And the only way to do that is by duplicating herself.
First, she can train other women the "Ate Guy Torture Therapy” and form an army of Ate Guy-Trained Torture Therapists—and earn a commission from each of them.
Second, she can create the "Ate Guy Healing Oil” in a bottle, ask other masseuses to sell them.
I repeat: Active income has a limit.
But passive income is virtually limitless. 

May your dreams come true,

Saturday, May 28, 2016

Live on 70 Percent of Your Income

Live on 70 Percent of Your Income
           I can hear you now.
           "Bo, that's impossible. How can I live on 70 percent of my income? I live on 110 percent of my income!”
           I want you to look at the list below.
           If you cut back on buying some not-so-essential items, and invest it in an investment vehicle that grows at 12 percent a year (or more), you'll be earning millions. (NOTE: If you followed the guidance of the TrulyRichClub
 in the past 4 years, your investment would have grown at an astounding 17.3%
           You think it's just a few pesos today—so why not spend it?
           But when you do, you're also throwing away your earnings.
           If you quit smoking, you would earn P6M.
           If you cut back on coffee, you could save yourself P10M.
           If you give up lotto, you'd have another P6M.
           Take a look…
Little Things
35 yrs @ 12%
2 cans per day
1 cups per day
Internet on-line games, video games, CD rent
1 per week
Ice cream, dessert, junk foods, candy, etc.
1 per day
1 pack per day
Extra cellphone load
1 per month
Lotto tickets
2 tickets per day
Movie tickets
10 per month
Buying "sale” items
1 per month
Total: P74 Million
Fact: You're Throwing Away Millions!
           Obviously, you have to watch your big-ticket purchases.
           That's where a lot of people lose money.
           Example: I've been driving my car for the past four years now. (And it was even given to me!) A lot of people are telling me, "Bo, it's time to buy a new one. You can afford it anyway.”
           Yes, I can afford it.
           But my car is still in a great condition.
           Sure, it isn't as smooth as when it was new. And its interiors are showing its age. Its mileage is pretty huge because I go all over the country.
           But I don't have plans to change it yet. Not now. I'm having so much fun investing my money and seeing it grow.
           May your dreams come true,
           Bo Sanchez