Cash Flow - Pinoy Reality

This one’s just forwarded to my mail inbox. It’s an article which I think is really useful, and helpful, especially to those who are employed and how they handle their cash. I decided to post it here to give this article more exposure as to benefit anyone or everyone in the same state as targeted by the article… the email message ha the subject: CASH FLOW ( funny but true)

Here’s the article, sana makatulong sa inyo ito:

There are those who e-mailed me asking about the basics of cash flow. I’m really sorry that I assumed everybody already understands it. Anyway, by demand … here it goes…

May isang bata… joke lang.

The basic is. What pattern do you see if you will get a P100.00 bill and monitor where and how it is transferred from 1 possessor to the other? How does it flow? The pattern for a typical Pinoy is.

You earn from your work, you spend it on food, gadgets, clothing and other basic needs. Before you reach the next payday, paubos na yung pera mo. But that’s ok payday is just a few days ahead and it doesn’t matter if I run out of money, I am expecting money again any time soon.

This cycle goes on and on and you make some sidelines or create other ways to earn but it seems that money was never enough.  (I am tempted to explain further pero usapan… basics lang).

So you can’t leave the job that you have because a week without work would affect the cash flow you have to support your family and needs. As much as you wanted to accept another job, the gap would make you pay less for a couple of days, which makes you a slave to your boss.

At least, you have a job to support your needs.

So to illustrate.. .Cash is flowing inside your pocket.

Years have gone by doing your monotonous routine.

Question… what if you get fired? Or you were forced to retire because there are new and younger people ready to take your place. What would you do?

As an OFW, Makati Executive, Top Salesman, Engineer, Attorney, Teacher, etc…  What if it all ends? The sweet cash that enters your pocket every 15 th and 30th suddenly comes to a halt.

There are two things you can buy with your money…  An asset and a liability. To describe each… An asset brings money inside your pocket; a liability takes money out of your pocket. Another way to see, it is that an asset if you buy one, will bring the money you spent for it back to you 2 or 3 folds. A liability, when you buy it will not give your money back at all.

Sa madaling salita… kapag asset, maibabalik ang pera , pag liability, goodbye sa pera…

Ang problema kay JUAN DE LA CRUZ, habang may trabaho ipon ng ipon at bili ng bili ng liability!

I have seen OFWs get back to the country with gold chains at kung pwede lang limang shades ang isuot ng sabay-sabay gagawin nya eh… dvd, component, jackets, clothes, inuman, pulutan, party, pabango… hindi na makalakad sa dami ng bitbit…

At s’yempre mga empleyado natin dito sa bansa na lingo-lingo bago cell phone at mags ng kotse.. hindi na nga magkasya ang damit sa aparador, tapos pag umaga sasabihin… . wala na akong maisuot.

Well, konting isip… what you bought… will it bring money back to you? I know what you have in mind… you have to enjoy what you worked hard for. That’s right, but think of something that will last… think of your future.

I have seen the worst of people who were abogado de kampanilya, executive secretaries of top rank business men, people who worked for big companies, earned a fortune and got a big retirement pay by the millions… Now…. Wala na.

Why? Because of their cash flow… went in… went out.

I need not to mention basketball players, actors, singers, etc… Check what is their career path… next after acting, singing and playing… POLITICS. Kasi, ‘yung million na kinita nila, puro liability ang binili.

Going back… all the liability they bought, ibinenta ng mura! I’m wearing a gold chain now, which I got from a seaman… he bought it for P35,000 and sold it for 8,000 to me.  Hindi po asset ang alahas! Bakit? Totoo na tumataas ang value n’ya pero kapag gutom ka na, kahit palugi ibebenta mo! (wala bang aaray?) Cell phones… dvd players etc. pati bahay at kotse… that’s the cash flow of most OFWs…

The question is … " WHAT IF THE INCOME STOPS?"

Sa Pinoy, ganito: anak… mag-aral kang maigi, at pag tanda namin… ikaw na bahala sa amin ha….  Hindi po ba maling-mali. ..

You have to establish something today that will take care of your future.

Teka, teka… eh ano ang dapat gawin para hindi mangyari yan?

You must create a source of income that will continually make money flow inside your pocket. Start a business! While you are working as an executive or an OFW, or a professional. .. START A BUSINESS and MASTER that business till you get out of that company. Para kapag tumigil ang income mo sa kanila… may susuporta pa din sa iyo hanggang pag-tanda mo!

Now don’t tell me to invest my money on pensions and plans… NO WAY ! Narinig n’yo na siguro yung …. Naku ayaw ko na magbanggit.. .. ‘yung mga nagbayad at hindi nakapag-claim. .. sila pa ang dinimanda at nag-piyansa! !! HUWAG MO I-ASA ANG PAGTANDA MO SA IBA! GUMAWA KA NG SARILI MONG BALON NG PERA!  KAHIT MALIIT PA ‘YAN, SARILI MO AT HINDI KA AASA SA IBANG TAO…

Imagine yourself when you reach an older age… (aruy ko,,, baka yung iba sa inyo about that age… tabi tabi po…Ako po sa mga nagtatanong. .. I’m 37 years old. Naabutan ko pa si Michael Jackson at hinele po ako ng nanay ko sa mga kanta ng hagibis…). You have money that the company gave you as your retirement pay… what will you do?

You can consume the money till your old… eh kung hindi umabot?  Masamang damo ka pala… at hindi ka kaagad kinuha ni Lord. Eh pang age 65 lang yung naipon mo na budget.

Or maybe, you can start a business and use the money for capital… Kapatid… 9 out of 10 businesses, FAILED… yung isang magsa-succeed, gagayahin pa ng kapitbahay mo instead na mag-franchise sa ‘yo… think! At age 50, you are struggling trying to make a business work! What if it fails?!

Eh ano nga ba ang sagot?

The answer is, stop buying liabilities and instead buy assets now. I don’t care if it is a banana-Q store, balot, ice candy or a sari-sari store, etc… start now! Because, your experience here will teach you what to do in the future.  It’s so hard to struggle in business when you are 60 yrs old.

You have to create a source of income separated from the source of income from your work. That when the time comes that you have to stop working, you will have your own source of money! Create assets, start a business that will be there to support you and your family. I AM NOT TELLING YOU TO QUIT YOUR JOB! I’m telling you to start a business while you’re working and stop spending your money on liabilities and start putting them on assets!

Ang pera kapag pinambili mo ng LIABILITY… hindi na babalik… ang ASSET… BABALIK.

Teka… masama ba bumili ng mga magagandang gamit? Hindi! Siguraduhin mo lang na ang pambili mo nun ay galing sa asset mo. The business has to be prioritized! Mawalan ka man ng trabaho, may negosyo kang palalaguin.

If before, nabubuhay ka naman ng iisa sapatos mo, huwag mo baguhin ‘yun… dati, nagdyi-jeep ka lang… ‘wag ka na munang mag-FX…

Create assets and lessen liabilities. Invest and learn now… mag-negosyo!

Eh anong negosyo? Any, as long as you think it is work and doable! I am still looking for partners for my HOME MASSAGE SERVICE! SPA MAGIC! And my business CAR MAGIC is still franchising. .. (joke lang … baka sabihin nyo nag pro-promote lang ako eh…But I AM PROUD TO SAY THAT ALL MY BUSINESSES ARE ORIGINAL AND ALL ARE GRAND ASSETS!

I started all my businesses with a very small capital. If I used that money to buy a gadget, new shoes or any liability… baka wala lahat ng negosyo ko at wala na akong makain ngayon.

Again, I hope that this BASIC CASH FLOW article helps…. I wish all of us become financially free!

FROM AN UNKNOWN AUTHOR

PAKIPASA…
MAGANDANG EYE-OPENER ‘TO!!!

Sosyal di ba? May eye-opener na, noon can opener lang…

Sample Lease Contract

Below is a generic copy of lease contract. Feel free to modify (copy and paste) and print to suite your needs.

LEASE CONTRACT

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF LEASE is made and executed at the City of _____, this day of _______________, 20__, by and between:

        _____________________________, of legal age, single/married to (Name of spouse if any),   Filipino, and with residence and postal address at (Address), hereinafter referred to as the LESSOR.

-AND-

        _____________________________, Filipino and with residence and postal address at (Address), hereinafter referred to as the LESSEE.

WITNESSETH; That

WHEREAS, the LESSOR is the owner of THE LEASED PREMISES, a residential property situated at ___________________________________;

WHEREAS, the LESSOR agrees to lease-out the property to the LESSEE and the LESSEE is willing to lease the same;

NOW THEREFORE, for and in consideration of the foregoing premises, the LESSOR leases unto the LESSEE and the LESSEE hereby accepts from the LESSOR the LEASED premises, subject to the following: 

TERMS AND CONDITIONS

1. PURPOSES:   That premises hereby leased shall be used exclusively by the LESSEE for residential purposes only and shall not be diverted to other uses. It is hereby expressly agreed that if at any time the premises are used for other purposes, the LESSOR shall have the right to cancel this contract without discrimination to its other rights under the law.

2. TERM:  This term of lease is for ONE (1) YEAR, from _____________ to __________ inclusive. Upon its expiration, this lease may be renewed under such terms and conditions as my be mutually agreed upon by both parties,  written notice of intention to renew the lease shall be served to the LESSOR not later than seven (7) days prior to the expiry date of the period herein agreed upon.

3. RENTAL RATE:   The monthly rental rate for the leased premises shall be in PESOS: ________________________________________, (________.00), Philippine Currency. All rental payments shall be payable to the LESSOR.

4. DEPOSIT:   That the LESSEE shall deposit to the LESSOR upon signing of this contract and prior to move-in an amount equivalent to ONE (1) MONTH or the sum of  PESOS: _____________________________ (___________.00), Philippine Currency.  wherein the deposit shall be shall answer partially for damages and any other obligations, for utilities such as Water, Electricity, Cable Tv, Telephone, or resulting from violation(s) of any of the provision of this contract.

5. DEFAULT PAYMENT:  In case of default by the LESSEE in the payment of the rent, such as when the checks are dishonored, the LESSOR at its option may terminate this contract and eject the LESSEE. The LESSOR has the right to padlock the premises when the LESSEE is in default of payment for One (1) month and may forfeit whatever rental deposit or advances have been given by the LESSEE.

6. SUB-LEASE:   The LESSEE shall not directly or indirectly sublet, allow or permit the leased premises to be occupied in whole or in part by any person, form or corporation, neither shall the LESSEE assign its rights hereunder to any other person or entity and no right of interest thereto or therein shall be conferred on or vested in anyone by the LESSEE without the LESSOR'S written approval.

7. PUBLIC UTILITIES:   The LESSEE shall pay for its telephone, electric, cable TV, water, Internet, and other public services and utilities during the duration of the lease.

8. FORCE MAJEURE:   If whole or any part of the leased premises shall be destroyed or damaged by fire, flood, lightning, typhoon, earthquake, storm, riot or any other unforeseen disabling cause of acts of God, as to render the leased premises during the term substantially unfit for use and occupation of the LESSEE, then this lease contract may be terminated without compensation by the LESSOR or by the LESSEE by notice in writing to the other.

9. LESSOR'S RIGHT OF ENTRY:   The LESSOR or its authorized agent shall after giving due notice to the LESSEE shall have the right to enter the premises in the presence of the LESSEE or its representative at any reasonable hour to examine the same or make repairs therein or for the operation and maintenance of the building or to exhibit the leased premises to prospective LESSEE, or for any other lawful purposes which it may deem necessary.

10. EXPIRATION OF LEASE:   At the expiration of the term of this lease or cancellation thereof, as herein provided, the LESSEE will promptly deliver to the LESSOR the leased premises with all corresponding keys and in as good and tenable condition as the same is now, ordinary wear and tear expected devoid of all occupants, movable furniture, articles and effects of any kind. Non-compliance with the terms of this clause by the LESSEE will give the LESSOR the right, at the latter's option, to refuse to accept the delivery of the premises and compel the LESSEE to pay rent there from at the same rate plus Twenty Five (25) % thereof as penalty until the LESSEE shall have complied with the terms hereof.  The same penalty shall be imposed in case the LESSEE fails to leave the premises after the expiration of this Contract of Lease or termination for any reason whatsoever.

11. JUDICIAL RELIEF:   Should any one of the parties herein be compelled to seek judicial relief against the other, the losing party shall pay an amount of One Hundred (100) % of the amount clamed in the complaint as attorney's fees which shall in no case be less than P50,000.00 pesos in addition to other cost and damages which the said party may be entitled to under the law.

12. This CONTRACT OF LEASE shall be valid and binding between the parties, their successors-in-interest and assigns.

IN WITNESS WHEREOF, Parties herein affixed their signatures on the date and place above written.

(Name of Lessor)                               (Name of Lessee)

LESSOR                                                LESSEE

Signed in the presence of:

_____________________________                  ______________________________

ACKNOWLEDGEMENT

Republic of the Philippines)

_________________________) S.S

BEFORE ME, personally appeared:

   Name                                 CTC Number             Date/Place Issued

      (Name of Lessor)                             10000000           February 24, 20__ / Cavite City

(Name of Lessee)                            10000000           January 07, 20__ / Makati

Known to me and to me known to be the same persons who executed the foregoing instrument and acknowledged to me that the same is their free and voluntary act and deed.

This instrument consisting of ____ page/s, including the page on which this acknowledgement is written, has been signed on each and every page thereof by the concerned parties and their witnesses, and sealed with my notarial seal.

WITNESS MY HAND AND SEAL, on the date and place first above written.

                                                                    

                                                                                                    Notary Public

Doc. No.______;

Page No. ______;

Book No.______;

Series of 20___.

Three Things

Three things in life that, once gone, never com back:

Time
Words
Opportunity

Three things in life that are most valuable:

Love
Self-confidence
Friends

Three things in life that are never certain:

Dreams
Success
Fortune

Three things in life that make a man/woman:

Hard work
Sincerity
Commitment

Three things in life that can destroy a man/woman:

Alcohol
Pride
Anger

Three things in life that once lost, hard to build-up:

Respect
Trust
Friendship

P---pray
U---until
S---something
H---happen

Saving Money in the Shower

I am sure majority of us never thought that morning shower as another way to save money. But, there are a lot of little things we can do to reduce the cost of keeping clean and neat. Even if we’re still half asleep, that won’t mean we want money needlessly running down the drain. Here are a few ideas I found out on how we can save money in a shower:

Take shorter showers - It may feel good to stay in water, but it costs money (plus warm water dries our skin, anyway). Use a timer to control shower time.

Do a Navy shower - My husband used to say this. In a Navy shower, you just get yourself wet then turn off the water while you soap up and wash. You turn the water on again to rinse yourself.

Use a pail and dipper (tabo) - I’m getting used to this new habit of turning faucet’s both cold and warm to get to my right temperature and using the right amount of water.

Install low-flow shower heads - These reduce the amount of water that flows out and they’ve come a long way. They no longer condemn you to a trickle of water. Many offer a comfortable flow of water.

Shower less often - If you shower twice a day, can you get by with only once?

Shower, don’t bathe - Baths use far more water than showers. The occasional bath is a nice treat, but a bath every day is a big water waster.

Keep those razors in good condition - Avoid leaving razor in the shower. Blades that are constantly wet usually get rust and will not last as long as those that are stored in dry cabinets. Wipe it dry and put it away. If you use an electric razor, follow the care and cleaning instructions to make certain it lasts a long time.

Use towels/washcloths more than once - Unless you are really filthy, you can use your towels and cloths more than once. You can easily get by with changing them once or twice per week. Hang them up to dry when you’re done showering to keep them from mildewing or stinking. This will make them last longer and reduce your laundry bill.

Use less and fewer products - Try using less of your current soaps and shampoos. Instead of a big squirt, try a teaspoonful. Experiment to see if you can get the same results with less. Experiment with how often you use products, as well. Do you really have to shampoo your hair every day, or will every other day do? You can also try using fewer products in general. Do you need shaving cream, or can you get by with just water? Does your hair require conditioner or do you use it just because you think you’re supposed to? Do you need three different kinds of shampoo? See if you can do with fewer products. And don’t forget to use up all of your products. Turn bottles upside down to get the last bits out and mold left over soaps to the new bar so it all gets used up.

Recycle the water - Catch the grey water into a bucket, then use it to fill the toilet… I know it’s yak sometimes!

A shower doesn’t seem like much in the everyday scheme of your spending. However, a few small changes can add up to big money saved over time.