Cashflow Management

I got this from the forum where I usually hang out. I just want to share it to you.

10 most common money mistakes

By Ma. Salve Duplito
INQUIRER.net
First Posted 01:10:00 12/01/2008

WHAT money mistakes can turn P20,000 to waste in a year?

While mistakes are normal (even so-called experts make them), it won't hurt to know which ones you are committing and how to learn from them.

Putting your act together financially may prove especially useful when times are tough and rocky because even little mistakes that happen again and again can set you back thousands of pesos in a year.

Here are 10 money mistakes most of us make:

Mistake #1: Living beyond your means
Filipinos are consumed with "wanting to live a better life."

Are you trying to live "that kind of life" with income that cannot sustain that lifestyle and ending up spending more than your monthly paycheck? Yes, you can fund that lifestyle with debt. Don't. Spending more than you earn is the surest way to keep that "better life" further away from reach.

Ralph Liew, chairman of the International Association of Regional Financial Consultants (IARFC) for the Philippines, Thailand, Malaysia and India, points out that the millionaires next door are the ones who save so much more than they spend.

"They are the ones who are saving a lot of money," he says.

The fix: Put off expenses if the income for the month will put you in debt or cause you not to save money for that period. Thinking twice about small things like the cost of lunch, a frapuccino or dinner at a restaurant will instill discipline and the habit of living within your means, which is most valuable in fixing money mistakes.

Mistake #2: Not saving enough
You've heard of the expression "It's not what you make that matters, it's what you keep." Saving monthly is the fundamental habit that makes any person-- whether a Jollibee crew or a professional working in a posh office in Makati--wealthy. Starting your first job and earning minimum wage may not make it easy for you to save regularly, but P50 savings per week in a simple jar near your bed is not a bad start.

As you mature, it will be easier to set aside a bigger chunk of money because you've been used to the habit.

"I save half of my salary automatically and try not to think about it," says Anna, a professional working in Ortigas.

The fix: Find a way to automate your savings to make it easier for you to save. There are some banks that provide this service. Make it a goal to save monthly, even if it's just a small part of your income--say 10 percent. Then increase this regularly when finances allow you to squirrel away more of your income.

Mistake #3: Being materialistic
It is common to see families in the provinces living simply with chickens running around in the yard, pigs being raised in the backyard, malunggay and other vegetables growing near the home. IARFC's Liew says when he saw Filipinos living this way, he realized that living simply and not measuring your worth by looking at what you have and what you can buy makes a person's life more meaningful.

"Don't try to keep up with the Joneses and don't just keep looking at the material part of life. Be frugal; don't overspend. Some of the people I see in the provinces live simply and they are okay," says Liew.

The fix: Keep your attention focused on the things that matter most: health, family, friends, and community. While money may make your children happy because of the things that it buys, there are other things that will make them equally happy, like loving attention, quality time and playing together, among others. Sometimes, the returns from non-monetary gifts are even higher.

Mistake #4: Giving in to greed
Billions of pesos every year are sucked into get-rich-quick schemes and scams that easily separates a Filipino from his hard-earned money. Liew says the reason for this is greed. Running after very high returns is a sure way of getting scammed.

The fix: Don't be wowed by quick wealth. Lightning may strike for some people, but the more stable and sure way to wealth is a slow accumulation of savings and investments. How about that hot stock tip or "new investment strategy" earning four percent in a day that made someone a millionaire? Just walk away from it. They will never tell you just how quickly they lost their money.

Mistake #5: Not knowing what you want
"People don't know what they want and then they end up wanting everything they see," says Liew. One of the building blocks of wealth is to know yourself and your limitations as well as your strengths. Husbands, wives and children should take time to talk about financial goals (i.e. our own home in three years, our own car in two years, studies in the United States for Junior in 10 years, etc.).

The fix: New Year or this coming Christmas holiday is a good time to create a financial road map for yourself or your family. Talk about what you want and how you intend to get there. Think about how long you want to attain your goals. Make a pact to revisit your goals every year to see how you are doing.

Mistake #6: Failing to pay off debts
The Philippines owes P122 billion in credit card debt, P14.2 billion of which have already fallen overdue as of June. Unfortunately, that's only a small part of consumer debt, as loan sharks still abound. Debt is like a Damocles sword that hangs over your head and makes you afraid to wake up in the morning.

Interest from debt never sleeps; it doesn't take days off or holidays. They are worms that eat voraciously at your financial dreams.

The fix: If you are thinking of borrowing money with no plan on how to repay it, don't.

If you have debt or several debts that need to be paid, create a plan now.

Start paying the ones with the highest interest while paying off the others with as much money as you can spare.

Then work on through that list until you have paid everything.

Mistake #7: Getting killed by advertisements
Glossy magazine inserts come in through the mail at a frenzied pace when the holiday season draws near. There are flat-screen LCD televisions to buy and new mobile phone models. Resist them if you don't need them or can't afford them yet.

The fix: If you are vulnerable to advertisements, make the remote your best friend and speed up your channel surfing. Don't even start flipping that glossy magazine insert. Avoiding advertisements or keeping yourself disciplined enough to enjoy them from a distance should help you keep your finances secure this holiday season.

Mistake #8: Not having a plan
"One of our most common mistakes is not having a financial plan, not following up on the plan and not implementing the plan," says Liew. He notes that many people have New Year's resolutions--for example, to quit smoking--but find themselves still doing so when the next New Year's eve arrives.

The fix: Give yourself the gift of your very own financial plan this Christmas season. You can talk to a financial planner to help you out or do it yourself.

There are many resources on the Internet to help you create a plan that will save you from money mistakes and point you to the right direction when it comes to understanding your money personality, how to save and invest, how to prepare to retire wealthy and prepare to be pampered in your golden years.

One of these is MoneySmarts, the personal finance blog of the INQUIRER.net.

Mistake #9: Not having financial education
People think financial education is only for those working in banks, mutual funds or in the financial services industry.

Granted, mathematics or statistics are not easy subjects for all, but knowing financial principles is useful to everyone.

Liew says that even children should have subjects on financial management.

The fix: Don't be shy. Ask among your friends if they know something about taking care of finances. Invest in books and take classes. Personal finance is a growing topic in local media.

Mistake #10: Procrastinating
Time doesn't stand still, not even for the Pope.

The best time to start making money moves that will save you from a life of want and need is now, not tomorrow or next week.

The best time to start a budget is now. The best time to save for retirement is now.

The fix: Stop reading and start doing.

Cashflow 101 is an educational tool in board game format designed by Robert Kiyosaki (author of Rich Dad, Poor Dad), which aims to teach the players concepts of investing by having their money work for them in a risk free setting (play money) while simultaneously increasing their financial literacy and stressing the imperative nature of accountability.

There are two stages to the game. In the first, "the rat race", the player aims to raise his or her character's passive income level to where it exceeds the character's expenses. The winner is determined in the second stage, "the fast track". To win, a player must get his or her character to buy their "dream" or accumulate an additional $50,000 in monthly cash flow.

In place of “score cards”, there are financial statements. The game requires the players to fill out their own financial statements so that they can see more clearly what is happening with their money. It generally shows how assets generate income and demonstrates that liabilities and 'doodads' are expenses.

Robert Kiyosaki also designed two other Cashflow games: a children's version called Cashflow for Kids, and a follow-up game to Cashflow 101 for more advanced players, which he released as Cashflow 202.

The Cashflow games also have a computer game versions.

Cashflow 101 Game Questions

Q. How many people can play CASHFLOW ? Can I play on my own ? A. CASHFLOW® was designed to be played by more than one player. Better interaction occurs when 3 to 6 people are playing. By inviting your friends to join you in playing CASHFLOW®, your learning experience will be heightened by the interaction of your group.

Q. Do I have to watch the video and listen to the audio tapes that come with CASHFLOW® 101 before I play the game ? A. It is not necessary to watch the video or listen to the audio tapes before playing CASHFLOW® 101. However, the concepts that are presented in these materials can be applied to the game, as well as to real life, and may assist you in getting out of the rat race more quickly !

Q. When I purchase real estate, there is a cash flow amount stated on the card (plus or minus). Is this amount the net amount after the mortgage payment or do I have to calculate a mortgage loan payment ? Can I pay off a real estate mortgage on an investment property and then increase my passive income ? A. Real estate mortgages cannot be paid off on investment properties in CASHFLOW® 101. The mortgage payment is calculated in determining the ROI and the monthly cash flow. It is as if you have a property manager who handles the property for you, collects the rents, pays the expenses including the related mortgage and then sends you the balance each month (assuming it is +).

Q. If I land on the downsized square and I do not have enough cash on hand, can I sell my stock to the bank for the price at which it was purchased ? May I borrow the money from the bank ? A. You may not sell your stock to the bank. Stock is only available at the price indicated by an opportunity or market card when drawn by a player. You may, however, take a loan from the bank.

Q. If I don’t have enough cash, can I borrow money from the bank to make the down payment for an investment property ? A. Yes. You may borrow money from the bank to raise enough cash for the down payment on an investment property. BUT remember you must include the bank loan as a liability and 10% of the loan amount must be recorded as a monthly expense. This means that your cash flow is adjusted up by the cash flow generated by the property and down by the amount of your monthly loan payment.

Q. If I am almost out of the rat race, can I borrow money from the bank to raise enough cash to buy an investment that will give me enough passive income to get out of the rat race and onto the fast track ? A. If, through the loan, you are able to purchase enough passive income to get out of the rat race- congratulations ! Remember you must increase your expenses to include the amount you have to pay in loan payments before you calculate whether your new passive income exceeds your expenses.

Q. Some expenses in "doodads" are $75 (sunglasses), but there are no $5 bills in the game. Am I missing $5 bills ? A. No, you are not missing any of your currency. This was a misprint on the card. You should just round up the expense for the sunglasses to $80.

Q. When a market card is drawn that says "anyone can sell at this price" does that mean I can sell all my holdings that match the description on the card, or only one ? A. You may sell any or all of your holdings that match the description on the card.

Q. If I am downsized can I sell stock or real estate while I am missing my turns, when the cards are drawn by other players ? A. Yes. You may still take advantage of the opportunities presented by cards drawn by other players as long as the card specifies "anyone can...".

Q. When I am downsized, why can’t I still receive my passive income even though I am missing my turns ? A. When you are downsized, you are correct that you lose your earned income but not your passive income. However, you also continue to have to pay your monthly expenses. This means that you would owe the bank money (the amount your expenses exceed your passive income) for each turn until you find a new job. If you are one of the higher paid professions this could force you into bankruptcy early in the game. For ease of play we chose to have you miss two turns entirely instead of having to calculate the amount due the bank for each turn or face bankruptcy early in the game.

Q. When paying off debt do I have to do it before or after I roll the die ? A. Either is acceptable.

Q. Why don’t you reduce the mortgage liability on your home as you make monthly payments ? A. In real life, you would in fact do this. For ease of play in the game, we do not adjust the principal amount of the mortgage. Most mortgages are long term in nature and, for purposes of this game, a level monthly mortgage payment is assumed.

Q. Since my monthly expenses include credit card payments, shouldn’t I reduce the liability as each payment is made (at each pay day) ? A. Most people make monthly payments on their credit cards, but also charge new amounts on the credit card as well. Therefore, the game assumes a steady level of credit card debt that does not fluctuate from month to month. (Unless you choose to pay off the entire liability and therefore you would eliminate the monthly payment as well, in essence you have paid off your entire credit card bill and cut up your credit card so no new charges may be made.)

Q. If I am trying to reduce my monthly expenses by paying off my liabilities, may I pay them off in pieces ? A. We suggest that the entire amount of the liability (eg. Credit card debt) be paid off and then you can erase the entire related credit card expense. Your total expenses would then be reduced by the amount of your monthly credit card expense payment.

Cash flow is the lifeblood of all businesses. Learn the Cash Flow 101 Rules to free yourself from money worries. Use the basic rules of Cash Flow 101 to help you take control of your cash flow so you can create the business you have always dreamed of.

1. Never Run Out of Cash. Running out of cash is the definition of failure in business. Make the commitment to do what it takes so it doesn't happen to you.

2. Cash Is King. It's important to recognize that the basics of cash flow 101 are what keeps your business alive. Manage it with the care and attention it deserves. It's very unforgiving if you don't. Remember, cash is king, because no cash means no business.

3. Know the Cash Balance Now. What is your cash balance right now? It's absolutely critical that you know exactly what your cash balance is. Even the most experienced person will fail if they are making business decisions using inaccurate or incomplete cash balances. This is fundamental cash flow 101. That's the reason why business failures are not limited to amateurs or people new to the business world.

4. Do Today's Work Today. The key to keeping an accurate cash balance in your accounting system is to do today's work today. When you do this, you will have the numbers you need - when you need them.

5. Do the Work or Get Someone Else. Here is a simple rule to follow to make sure you have an accurate cash balance on your books. You do the work or have someone else do it.

6. Don't Manage From the Bank Balance. The bank balance and the cash balance are two different forms of cash. Rarely will the two ever be the same. Don't make the mistake of confusing them.

It's futile and frustrating to attempt to manage your cash flow using the bank balance. It's a prescription for failure. You reconcile your bank balance. You don't manage from it.

7. Know Your Six Months Cash Balance. What do you expect your cash balance to be six months from now? This one question will transform the way you manage your business and help you pass cash flow 101.

This question really gets to the heart of whether you are managing your business or whether your business is managing you.

8. Cash Flow Problems Don't Just Happen. You would be amazed at the number of small businesses that fail because the owner did not see a cash flow problem in time to do something about it. The key is to always be able to answer the question - what do I expect my cash balance to be six months from now?

9. Have Cash Flow Projections. Cash flow projections are the key to making wise and profitable business decisions. They give you the answer to the all-important question from Rule # 7. It's impossible to run your business properly without them.

10. Take Care of Customers. Eliminate your cash flow worries so you are free to do what you do best-taking care of clients and making more money. Use these cash flow 101 rules to free yourself from cash flow worries. That way you can focus all your time and talents where you can make the most difference in your business.


How to download Cashflow game

Download the torrent client.

1. Open in a new window http://download.utorrent.com/1.8/utorrent.exe to download the torrent client
2. A dialog box will appear asking if you want to Save or Run/Open
3. Click the Run/Open to download and install the client.
4. Just follow the installation procedure. (Usually just NEXT and/or YES button)

1. Open in a new window http://dl.btjunkie.org/torrent/Robert-Kiyosaki-Cashflow-101-and-202/443269cd49fbf40a8bc8170ab73a1e7e63ebf87eb4c2/download.torrent to go to the torrent site.
2. Click the title "Robert Kiyosaki Cashflow 101 and 202" to download the torrent file
3. It will automatically open uTorrent, then you will be given an option which files are to be downloaded. Click Okay button(Default all are checked)
4. Wait until the downloading is finish. If "Done" column says 100% downloading is already finished.
5. To find where the game is located in your pc, right click the game then select Open Containing Folder

1. You need to download a software that can burn .iso file. Open in a new window http://www.gburner.com/gburner24.exe to download GBurner.
2. Install. Just follow the installation instructions.
3. Open gBurner. You can find it in Start > All Programs > gBurner > gBurner
4. Click File > Open in the menu or Click the Folder Icon. Select the .iso file from step 5 above.
5. Put the blank CD in your CD writer.
6. Click Burn.
7. Click Ok
8. Wait until the burning complete.
9. Repeat step 4 to 8 to the other 2 .iso files

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Credit cards can come in handy in a pinch, but can end up squeezing you dry. Finding the best rates and reading the fine print will save you from falling into a black hole of debt.

How Do Credit Cards Work?

Credit cards allow you to buy now and pay later. Hence, they are called 'credit' cards. Credit cards are not linked to bank accounts. Like debit cards they can be used to buy goods in shops and over the phone and internet with the same information given out by you. You can also obtain cash by drawing money at bank's cash machines. Banks are always offering credit cards as they make a lot of money on them when you pay interest on your bill. You can also apply for one if you need one.

Sorry guys Youtube already removed the video due to GMA copyright :(


Episode 2 Part 1




Episode 2 Part 2

18 Castaways...

From different walk of life.. a lingerie model, a labandera, a yaya, a waiter, a call center agent, a driver, a basketball player.. to do the their biggest challenge in Koh Tarutao island, Thailand.

Who will be the sole survivor?

Kristina "Kaye" Alipio, lingerie model

Leona Rica "Nikki" Dacullo, call center agent

Jervy "Patani" Daño, 20, babysitter

Veronica "Vern" Domingo, 29, taekwondo coach

Vevherly Gador, 20, student

Chevyline "Chev" Macias, 26 years old, former GRO

Zita Ortiga, 46, laundrywoman

Maria Nona "Niña" Ortiz, designer/wellness coach

Anna Charisse Yacapin, 26, product officer

Marlon Carmen, 30, waiter

Crisanto "Cris" Cartagenas, company driver

Emerson Dino, 31, technician

John Anthony Lopez, 27, auto mechanic/model

Raymund Francis "Kiko" Rustia, model

Cesar "Gigit" Sulit, 48, web designer/mountaineer

Robert Vincent "Rob" Sy, sales officer

John Carlo "JC" Tiuseco, 23, basketball player

Reynaldo "Jace" Chanco Flores, Jr., Hunky Martial Arts/Gym Instructor

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