Sunday, November 8, 2009

7 Simple Reasons Why We Want You to Be Rich

7 Simple Reasons Why We Want You to Be Rich


"This blog was inspired by my Multimillionaire mentors in Business here in the Philippines and the book "Why We Want You To Be Rich" by Donald Trump and Robert Kiyosaki."


Reason # 1: Catastrophic Crisis is Coming

Most people here in the Philippines maybe would say this isn't true because Filipinos are already "used to crisis". Actually that's one of the ignorant ideas I've ever heard - I think they have no idea what they are talking about. Is this really the result of Filipino's being Financially Illiterate or just simply ignorant of their surroundings? Let's say this country is already experiencing crisis but the catastrophic Crisis is yet to come unless we Filipinos would take action for ourselves.

Our country Philippines is becoming more of a consumer rather than a producer. Maybe some of you would agree that most of our products are from other countries, most of our employers are from others countries, our skilled Filipinos are not investing their profession to develop our country because of lack of opportunities here and support and the list goes on. The big question right now is,

"Can we sustain ourselves without the help of other foreign nations?"

"Who is richer and wealthier, the company (producer) or the employee (consumer)?"

Today's poor and middle class needs to wake up soon because the Philippine government is not in the position to take care of them soon. We have a lot of baby boomers retiring soon (People that were born 1940s after World War II), and I tell you, "relying only on your pension as your retirement is the riskiest decision you'll ever made." Why? Soon the government don't have enough funds to support the Retired citizens and guess what, they will get their funds again by raising the taxes legally or borrow from the World Bank that causes to increase our Foreign Debt. Paying debt with a debt and the cycle goes on, is that financially smart?

Who will suffer if the government will raise the taxes? Did you know that since the times of Kings and Queens, taxes where designed to favor the Rich people? That's right, tax laws favors the Rich than the middle and the poor. Haven't you noticed, your salary was already deducted by taxes before you receive it. The Millionaires pays less taxes than the poor and the middle class. Surprised? Well done, now your learning.

Instead of coming up with solutions, the government has continued to borrow money to pay its financial obligations. Poor financial management also afflicts many big corporations.


Reason # 2: Most Filipinos have Low Financial IQ

Maybe some of you will be offended by this reason, I am a proud Filipino and I will not say these to bad mouth my citizenship. Maybe you would contradict this by telling me that, "Well we have excellent graduates from UP, Ateneo, La Salle, etc., we have a lot of Filipinos hired by Multinational Companies because we are capable enough to do the job, we are 3rd largest population who speaks English, we have a lot known Filipinos who excel from other countries etc.." Well I have no question about that, indeed I'm proud that my fellow Filipinos do their best for our country Philippines. But the problem is most people associate Academic IQ to Financial IQ or let's say Academic IQ is directly Proportional to Financial IQ to make it sound more scientific. Now here's the big question?

"Do you have to be a Zuma Cumlaude, Magna Cumlaude, Cumlaude to be rich?"

Let me tell you a fact that most known Wealthy people who started from scratch are either drop-outs, high school graduate, or they just got their education from their home. Try to look how Henry Sy (SM), John Gokongwei (Robinsons), and Lucio Tan (Philippine Airlines) started and you will be amazed on their humble beginnings.

Most Filipinos are poorly equipped to handle the crisis because of lack of financial education. When you have low financial intelligence or IQ, you keep doing the wrong thing and end poorer than you are now. From the book "Why We Want You To Be Rich" it was mentioned that,

"People expect the government to solve the problems facing the poor and middle class. But the truth is, government has not enough resources or power to do so. Many of our problems today are global in nature, such as the price of oil, terrorism, and the exporting of jobs and capital to other countries."

A lot of Filipinos are educated but they know a little about money and following the same formula from our parents, EARN, SPEND, AND SAVE, SAVE, and SAVE. Most of us were taught to rely on welfare, and a belief of saving, working hard and investing safely in mutual funds and other safe investments.

As T. Harv Eker, a multimillionaire from Canada who created wealth in 2 and 1/2 years from zero personal money by using the art and science of Leverage and the famous author of the Secrets of the Millionaire Mind said, "Rich People Play To Win, Poor People Play Not to Lose."

Poor financial education has only made poor poorer and the middle class at risk of being poor. So don't wonder why a lot of Filipinos are victims by SCAMS (Most of them were victims of local "binary system" network marketing), rip-offs, or simply legal but dubious ways of investing.

Have you ever wondered why 95% of lotto winners after 5 years either return to their old financial status or bankrupt? Is it the money alone makes the people Rich or the Rich Mindset and a High Financial IQ makes the person Rich?


Reason # 3: Entitlement Mentality will make you Poor

There's nothing wrong with Medical Benefits, Retirement Benefits etc - but the problem of promoting this idea just to purely rely on this will make most Filipinos complacent on educating themselves financially. Why? Because on their minds someone is going to save them if they don't have money. O Really? Most Filipinos bet their savings to stock market, the government, or pension to take care of them financially. Trump and Kiyosaki said it all, "None of these can solve your financial worries. Only you can take care of yourself financially." So start learning the world of money, business and investing, and use this new vision to win financially.


Reason #4: Bad Times Can Make You Rich

I've learned that whether the Market is up or down, rich people still earns. "How can that be possible?", that's one of the questions i asked my mentors in Create Abundance Business Community before. They answered me like this, "Simple, there are more Financially Educated that's why they are financially smarter."

Maybe that answer from my mentors is not enough to you, maybe let me give a good illustration. Last year 2008, if you can still remember, "Lehman Brothers" went bankrupt then the a lot of companies were affected, thousands of employees were layed-off, a lot of projects were stopped because of financial crisis etc. Now tell me, given during that situation, "Do you see problems or opportunities?", "Do you see the rising prices of gasoline only or a good time to invest to business because there's a lot problems to solve?"

I've learned from Create Abundance Business Community that "Entrepreneur is a person who solves other people's problem for a profit or pay." I had a discussion with our fellowmen and most of them would say, "This country has no hope, there's a lot of problems everywhere. Go work abroad and never go back to this country." And if you ask a Foreign businessman from other countries they would answer like this, "Philippines is a good investment, it has a lot of problems. We solve their problems then we earn."

Have you ever wondered why there's a lot of call center industries in the country? While most Filipinos are dying to leave this country to retire abroad, foreign nations are enjoying putting up businesses to solve our problems.

I still believe in this saying, "If you want change, the change must start from you."


Reason # 5: Increasing your Financial IQ will make you smarter with Money

Whenever I have discussions with some people during of one of our events, most of them answer that they really want to be Rich. Then I always quote this statement, "A lot of people wants to be Rich but, only a few are committed." Most Filipinos want the money but they don't want to know how money was made, they don't want to educate themselves about different investments where Rich people invest, they don't want to spend time read books that can help them financially because they were thinking it's a waste of time. The book 'Why We Want You To Be Rich' said it clearly,

"Financial IQ simply means “having the ability to chart the economic waters nationally and internationally, to be able to look beyond the present and into the future, and to make decisions based on those assessments and insights..”"


Reason # 6: Invest to Win

As I mentioned before, T. Harv Eker said that, "Rich people play to win, Poor people play not to lose."


Well there are 3 types of People in World of Investments:

1. People who don't invest at all - These are the people who just expect their family, their company, or the government will take care of them.

2. People who invest not to lose - These are the majority of investors who wants to invest their money in what they think are safe investments.

3. People who invest to win - These are the people who wants to learn more, want more, want more control, and invest for higher returns.


Reason #7: Gain Leverage

I've learned that the difference between the Rich, Middle, and Poor Class is leverage. Leverage is simply defined as to do more with less.

Leverage can come in many forms. It can be your thoughts, so stop thinking like a poor person - a good example is from the book "Rich Dad Poor Dad" by Robert Kiyosaki, instead of saying "I can't afford it", you have say "How can I afford it?"then I'm sure if you're serious about that question - you'll invest your time for financial education. This quote is a great to start with,

"If you want to be Healthy, you study Health. If you want to be Wealthy, you study Wealth." - T. Harv Eker

Having a high financial IQ will allow you to take bigger, more daring steps, take bigger risks (but calculated risks), but reduce the chances of losing because ofcourse you know what you’re doing.

Let's me give some other things that you can leverage: other people's time, other people's money, other people's knowledge, other people's experience, other people's resources etc.

Did you know why your company is rich? The answer is simple, they are leveraging on your time and skill as a professional employee. If you don't have leverage in what you're doing right now, well my friend, you're working too hard.

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I guess, some of you may have more reasons why you want to be Rich. Some may say they want to rich because to give their family a better lifestyle, or they want to put up a school for unfortunate people, or they want improve the lives of the people on their provinces etc.

This community has a big Dream of making the Philippines a First World Nation by spreading Financial Education throughout the nation through our Free Wealth Courses and Cashflow Events. Some may say it is something only fools would think, but for us as volunteer entrepreneurs and investors it's a serious business.

Support our cause, be part of the solution of our country by investing your Time For Financial Education.

"In the Game of Life there are 2 Types of People: Players and Spectators. Players are those who takes action. They lose sometimes but they always comeback better and stronger and eventually win. Spectators are those who just watch people win or lose. They are the people who are good at criticisms but in reality they don't do anything for themselves. The question is, which one are you?"

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Cy Bombeo 
CA2020 Business Coach
Supports the Dream of First World Philippines

Posted via email from Create Abundance 2020 Business Community

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