Category Archives: Financial Literacy

How to Spend Your 13th Month Pay

Merry Christmas!

It’s that time of the year when Filipinos are happiest.  Many are eager to receive their 13th month pay to buy presents for family and friends, and to splurge a little on gadgets.  For some, there are extras, perhaps even a 14th and 15th month pay.

How do I spend my 13th month pay?

How do I spend my 13th month pay?

How do you use it?  I strongly suggest you think a little beyond the holiday season, Christmas presents and merry making.  Why don’t you….

  1. Plan

Close to 70% of people who get large amounts of money go broke within 5 to 7 years.  This is because many people are so unfamiliar with having a large amount of money.  Plan how to use your money, and budget how much you want to spend for Christmas and how much you want to allot for more productive use.A good rule of thumb is 10% for your spiritual community, 20% for your future, and 70% for your expenses and lifestyle:

  • 10% for your eternity
  • 20% for your maturity
  • 70% for your family

And then you plan further.  How do you spend your 70%?

  1. Protect Your Family

Have you considered what would happen if the Lord decides to call you home early?  What would happen to your family?  You can be healthy today, but what if tomorrow, you meet an accident?  Will your family go hungry?Buy SUFFICIENT life insurance coverage.  There are inexpensive options available, such as term life insurance.  P6,000 annual premium at age 25 can buy you P1M coverage.Combined with some mutual fund investments, P3,000 per month for 10 years can  buy P1.2M of life insurance at age 25, slowly growing to more than P4.8M coverage ( or P3.8M cash benefit) by age 60.

Learn about protection, savings and investment in free seminars,  like the SAVING YOUR FUTURE seminars on Practical Money Management from IMG.

  1. Eliminate debt

The typical Filipino makes strange financial decisions.  Most save in banks where their money earns 0.20% per year (that simply means if you put P100,000 in the bank on Jan 1, then by December 31, the bank will give you P200 interest after withholding tax), but borrow from the “friendly Bumbay” at 5-6, or from the “sosyal” credit card company at 3.5% PER MONTH.

Pay your credit card debt. By paying  credit card debt you effectively invest your money at a rate at least equal to the 3.5% they charge you.

Read more about How to Invest by Paying Your Credit Card, and earn an equivalent compounded annual growth rate of approximately 51%

  1. Invest

Investing is increasing the value of your assets using your existing resources, like time and money.  While some consider investing a science, there are enough elements of creativity involved, I prefer to think of it as an art.Investing in your greatest asset – you – is probably your best investment.  You probably invested hundreds of thousands of pesos in your formal education (elementary, high school, college) so you can get a good job, and work for money.

Invest in your financial education, to learn how make money work for you, and to gain financial wealth and spiritual abundance at the same time.  Join the TrulyRichClub.

Start by taking a crash course in stock market investing.Invest in safe investment vehicles to build your retirement fund and your children’s college funds. Equity mutual funds and UITFs are good starting points.

  1. Setup Your Emergency fund

Setup your emergency fund, normally three to six months of your living expenses.  Emergencies are for emergencies or unexpected large expenses such as medical emergencies or temporary unemployment.  Sale in malls are not emergencies, even if your dream shoes are on sale at 70% off.

Keep your emergency funds in savings or time deposits.

  1. Indulge

Spend a little on yourself.  Save specifically on little pleasures for yourself, maybe an occasional vacation or adventure.  Save for your future, but  treat your present self every now and then.

A note on the 10% for Eternity

Share your blessings  to your spiritual community and to the less fortunate.  Remember we are merely managers of of God’s wealth.  Giving actually makes you feel more blessed, and appreciate the abundance of God’s universe.  Giving makes you win in all areas of your life.  In other words, TrulyRich.

Bobet Prudente is a financial coach and Senior Marketing Director at IMG TrulyRichMakers.  He is a member of Bo Sanchez’ TrulyRichClub .  He conducts regular FREE Saving Your Future seminars on Practical Money Management Techniques in Quezon City.


Kwentong May Kwenta

Literally, “Kwentong may kwenta” means  either

  • stories that matter
  • stories with calculations

In this site, “Kwentong May Kwenta” mean stories with calculations that matter. There are many financial articles that explain financial concepts in great detail, citing numbers which seem magically derived from some advanced mathematics bordering on rocket science.

Our  “Kwentong May Kwenta” use tables of numbers to illustrate financial concepts, and practical applications, showing simple calculations one can do with a basic calculator or Excel.  The computations are easy to replicate for use in actual, personal situations.

We do not even expect readers to do computations.  We hope that by showing numbers to illustrate concepts and practical applications, the readers simply appreciate and relate to the concepts shown.


How to Invest by Paying Credit Card Debt

Do you have credit card debt?

If you have credit card debt, one of the best gifts you can give yourself is to pay your credit card aggressively. Paying high-interest debt is actually a very good investment strategy, sometimes “earning” you more than 50%

It isn’t enough to just pay the “Minimum Amount Due” every month. Create a payment plan, put it in writing, and attack your credit cards, starting with the highest interest credit card first. If the cards have the same interest rate, choose the one with the lowest balance.

Cut up your credit cards!

Aggressively pay your credit cards starting with the card with highest interest rate.

What happens if you just pay minimum? Let’s take a look. Suppose

  • you have credit card debt of P20,000 in one credit card
  • you do not add any more debt to that one credit card
  • your monthly interest rate is 3.5% and
  • you normally pay only the minimum P500 per month for this card
  • you keep your other credit card payments constant
Paying Minimum

Paying only the Minimum Amount Due will often increase your debt

After the first month, your P20,000 debt incurs 3.5% interest or P 700, and you pay P 500 only, so your ending balance is P 200 higher at P20,200. After 12 months, you would have paid P 6,000, but incurred P 8,920.39 in interests! Hence your ending balance after 12 months is higher at P22,920.39. Your debt and P 6,000 payment actually lost you P 2,920.39 or 49% loss!

But what if you decided to save an additional P10 per day or P300 per month to add to your credit card payments. That isn’t much, right? Instead of paying the minimum P500, you pay P800.

Pay more than minimum

Paying more than minimum, at least more than monthly interest, will reduce your credit card balance.

Because you are paying P800, or more than the interest (3.5% of balance), your debt actually shrinks every month. Specifically, your P20,000 debt will shrink to P18,539.80 in 12 months. This means your twelve P800 payments totalling P9,600 earned P20,000 minus P18,539.80 equals P1,460.20 or about 14.6%* !!!

But what if, when you get your 13th month pay, you use part of it to make a large payment on your credit card debt? What if, after deciding to save an extra P10 a day or P300 a month, you paid P7,500 on the first month?

Balloon Payment

Making a balloon payment reduces the interest rate

The balloon payment of P7,500 substantially paid the balance of your P20,000 debt, so after the P700 interest, first month ending balance is P13,200. Hence subsequent interest per month dropped initially to P450 then lower every month.

So your debt shrinks faster every month, up to P8,758 after 12 months! This means your P7,500 plus P800 every month totaling P16,300 earned P20,000 minus P8,758 equals P11,242 or about 69%* !!!

But let us make a real plan. Can you save P33/day instead of P10/day? The P23 difference is about the price of a cup of coffee at the cafeteria, or that modest ‘turon’ after lunch. That translates P1,000 per month. What if, in addition to your P7,500 on the first month, you add the P1,000 to the original P500, and pay P1,500 per month?

Aggressive Payment

Aggressively paying your credit card debt will enable you to quickly retire your debt

Wow! Is this for real? The P7,500 initial payment reduced the balance to P12,500 plus P700 interest increased the first month end-balance to P13,200. But the aggressive repayment at P1,500 per month very quickly reduced the balance to P1,022.81 after the 11th month, enabling you to fully retire the P20,000 debt after only 12 months!

Just think about this. Your P23,558.61 in payments earned you enough to fully retire one credit card with P20,000 beginning balance. That is like earning P20,000 on P23,558.61 in one year or 85%! Where can you find an investment that gives you 85% in a year?

After 12 months, it is time for your 13th month pay again. Time to start retiring your second credit card or next P20,000 debt. It will be easier for the second card. If you were paying minimum of P500 on your second credit card, you can then pay P1,500 more ( what you were paying for the first credit card ).

Pay high-interest debts! It is one of the best investments you can make!

* Strictly speaking, the effective interest rate is the same as the credit card rate, approximately 3.5% per month, or a compounded annual rate of approximately 51%.

Learn more about Practical Money Management Techniques in our FREE Saving Your Future seminars in

Related topics

Paano Nakalaya ang Isang OFW Mula Sa Barko at Umuwi sa Pamilya sa Pilipinas

I-share ko lang po sa inyo ang kwento ni Randy and Christy

Ako po ay isang OFW as a Seaman, Randy Cañete.

Randy and Christy Cañete

Meet Randy and Christy Cañete. Randy says: “Ako po ay isang OFW as a Seaman, Randy Cañete. At sa loob ng 16
na taon. Sa loob ng 16 years na paghihirap at pag titiis na malayo sa Pamilya para kumita ng pera….”

At sa loob ng 16 na taon. Sa loob ng 16 years na paghihirap at pag titiis na malayo sa Pamilya para kumita ng pera
….14 years duon ay walang naitabi
…walang naipon at walang investments na bubuhay sa akin at sa pamilya ko kung saka sakaling bigla akong mawawalan ng trabaho
… (mapaaway o nadisgrasya sa barko).Ito siguro sa kadahilanang nagbago ang aking lifestyle ganun din ang aking pamilya
…lumaki ang aking kita pero mas lumaki ang aking gastusin at bayarin dahil sa aking naging
….Negative cashflow dahil sa “Instant Gratification.” Bili dito, bili duon,pasyal
dito, pasyal doun. Nakalimutan ko na ang”Delayed Gratification” at matutong mag-ipon at mag-Invest para malaguin ang aking Hard Earned Money na syang magpapaginhawa at buhuhay sa aking pamilya sa oras ng wala na kong trabaho.

Salamat sa Dios at sa aking masidhing kagustuhan na matutunan ang wastong Financial
Literacy na natutunan ko sa pagbabasa ng mga Financial Books, pag aattend ng mga Seminars at higit sa lahat sa Opportunity at importanteng kaalaman sa buhay at ispritwal na ibinahagi sa aming mag-asawa ni Bo Sanchez at ng International Marketing Group that really changed
my insights how to handle hard earned Money and make them that Money work hard for me and for my Family. It teaches me and my wife too how to be a good Entreprenuer.

ps: sa ngayon po ay nakalaya nako sa pagiging alipin sa barko dahil 3 years narin ako dito sa Pilipinas kumikita gaya din ng kinikita ko sa barko.

pps: Kasama ko na pamilya ko at napakasarap ang buhay na makitang lumalaki ang aking mga anak at nagagabayan sila ng maayos at may suportang “Moral”.

PPPS: Para marating mo ang isang bagay, It is Important to know where you are right now muna. Answering this FREE survey will help you and your Family’s Future –>


Meet Randy and Christy when they conduct our FREE “Saving Your Future” seminar on Practical Money Management Techniques, in Dasmarinas Cavite. Christy normally conducts the Friday sessions.

Mayroon ding seminar sa:

Dalawang Kwento – Si Maid at si Shopping Girl

I-Share ko lang sa inyo ang dalawang kwento.
Alam ba ninyo?

Bo's Maid and OFW Wife

Dalawang Kwento – si Gina na maid ni Bo Sanchez at si Shopping Girl (OFW Wife?)

Bo Sanchez’ Maid Loves to Save and Invest!  Nagsimula siya in Feb 2010,

  • May monthly salary: P7,000
  • May monthly savings/investment: P 2,000

Ngayon,  after six years ( maid/bookkeeper na siya! )

  • May investment na siya sa stock market na worth P862,593 ( according to Bro, Bo Sanchez last May 2016)
  • Mas malaki na ang monthly investment niya rin!

Si OFW wife (imaginary person) natuto mag-WORKSHOP.
Si husband nagwo-WORK, si wife, nagsa-SHOP!

  • May monthly salary (from husband): P100,000
  • May monthly savings: ZERO
  • May monthly personal shopping budget: P10,000
  • May ni-re-rent na condo for P20,000
  • May kotseng Fortuner ( on car-loan )
  • May Galaxy tab, iPhone, laptop at maraming pang gadgets (on installment)
  • May P200,000 na utang sa credit card
  • May utang sa SSS, PAGIBIG, company loan, financing loan, cooperative, paluwagan, kamaganak, kapitbahay, atbp.
  • Walang savings or investment.

Tutularan ba natin si Maid mag-save and invest, o si Shopping Girl na mag-shop and spend?

It’s not what you make, it is what you keep!
Do you control your money, or does money control you?

Gusto ba nating mag-Tipid?
Gusto ba nating mag-Ipon?
Gusto ba nating mag-Palago ng pera?
Gusto ba nating mag-Saya pag retire natin??

Learn how to control your money, in our FREE Build Your Future Seminars!
We teach Filipino Families how to save and invest!

Mag-attend sa FREE Practical Money Management Techniques Seminar sa

*My friend Gina, Bo Sanchez’ maid, is now Bo Sanchez’ bookkeeper. She earns more, she saves more, and she will retire a millionaire. Gina, you are an inspiration to many many people!

Bo Sanchez’ other maid and driver are also saving and investing, and expect to be millionaires too, when they retire!

Download a free copy of “My Maid Invests in the Stock Market” at

Can you Save a Little to Save a Lot?

Cut costs on the things you don’t need now, to get the most important things you need in the future: kid’s education, house, car, dream vacation, retirement and health care fund.

You can make a fortune by making small changes today.

Do you drink softdrinks? Twice a day? Everyday?
Do you buy hot coffee? Twice a day? Everyday?
Do you smoke? A pack a day? Everyday?
Do you have your hair fixed? If straight, curl it. If curled, straighten it. Every month?
Do you eat junk food?

Think about non-essential sale items. Many buy P 1,000 non-essential sale items per month. Times 12 months is P 12,000.

Is P 12,000 a large amount for savings? It probably is!

Think about softdrinks. Softdrinks probably cost P 20 per can. Twice a day is P 40. Times 30 days per month is P 1,200 per month. Times 12 months is P 14,400.

Is P 14,400 a large amount for savings? It probably is!
Is P 20 a small amount to save? It probably is!

Think about cigarettes. It probably cost P 50 per pack. Times 30 days per month is P 1,500 per month. Times 12 months is P 18,000.

Is P 18,000 a large amount for savings? It probably is!
Is P 50 a small amount to save? It probably is!

Think about junk food. Junk food probably cost you about P 100 per pack per day. Times 30 days per month is P 3,000 per month. Times 12 months is P 36,000.

Is P 36,000 a large amount for savings? It probably is!
Is P 100 a small amount to save? It probably is!
Learn more about financial literacy, attend our Free Financial Seminar

But if we do not want to completely give up softdrinks or junk food, or cigarettes or non-essential items, maybe we can just cut-down? Half the annual amount is still a lot of money!

Resolve to cut down on a lot of small expenses. Small savings many times, over the days, over the months, over the years will allow you to save a lot of money!

Do You Love Your Family?

Give your Christmas gift to your most important person in the world!

This time of the year is when most employed Filipinos get their 13th month pay, and/or Christmas bonus, when we become generous, and we begin thinking of Christmas gifts for all our loved ones.  Remember to give your Christmas gift to the most important person in the world.  YOU!

Now, why am I identifying you as your most important person in the world? Am I telling you to be selfish?  Nope.  Nothing could be further from my intention.

  • Do you love your family?
  • Do you carry any significant financial responsibility with growing children or aging parent?
  • Are you concerned about lack of savings, or investments for your retirement or kid’s college education?
  • Are you concerned about what would happen to your loved ones in case you pass away early?
  • Are you concerned you would be a burden to your children in your old age?
Do you love your family?

You are your most important person in the world, because you are responsible for your loved ones, because your loved ones need you, because they depend on you. To protect your loved ones, you must protect yourself.

If you answered “Yes” to any of these questions, then You are your most important person in the world, because you are responsible for your loved ones, because your loved ones need you, because they depend on you.  To protect your loved ones, you must protect yourself.

If today, you are earning and financially support your loved ones, you provide financially for their present and future needs.

  • Do you want to have the means to get sufficient medical benefits, to ensure you can continue to be productive?
  • Do you want to have emergency cash and medical protection even if you lose your current job?
  • Do you want your loved ones to receive substantial cash if you pass away early?

And in the future, when you have retired, or when you are no longer able to actively work to earn for your daily basic needs for food and shelter

  • Do you want to free your loved ones from financial burden of supporting you?
  • Do you want to free your loved ones from responsibility for your medical bills?
  • Do you want to enjoy a retired life of comfort with your loved ones?

If you answered “Yes” to any of these, your Christmas gift to your most important person in the world, to YOU, is simply to START.

  • Do you want to start earning additional cash in your spare time, learn how to make money, and learn how to avoid bad debt?
  • Do you want to start investing in short term health protection, long term health protection and life insurance?
  • Do you want to start investing for your children’s education, for your retirement, for your dream home, for your dream vacations?

You can start by attending our Practical Money Management Tips seminar in Makati, or our financial seminars in Quezon City, Calamba and major cities.

Meet Joen dela Peñas (an Interview by Bo Sanchez)

This article was originally published in Kerygma June 2008 | An interview By Bo Sanchez.
International Marketing Group’s mission to spread literary is most visible via the numerous FREE financial literacy seminars in Makati and major cities in the Philippines.

We met at a most unlikely place – inside an airplane. I was bumped up to business class and he was seated right beside me. Since then, Jose Enrique (Joen) de las Peñas became my mentor in investing.

Bo Sanchez and Joen de las Peñas

Bo Sanchez interviews Joen de las Peñas, whose mission is to grow your money. Save the right way, not the wrong way.

Joen has a mission: to change the adage that “the rich get richer and the poor get poorer.” He believes that “the average person, even the poor, has an equal chance to become wealthy if given the right information.”

Joen certainly knows what he’s talking about. He is a registered financial planner and has more than 12 years of financial management experience. He sits as the president and chairman of the board of International Marketing Group (IMG) Insurance Brokers Corporation.

Joen is certainly one guy I learn so much from every time I talk to him.

Bo: I still remember your dialogue. You said, “I like your book.” I think you read Simplify and Create Abundance. And then you said, “Can I share some more to you?” In other words, you were trying to say, “You still lack some knowledge.” But I truly appreciate all the financial knowledge that you have shared with me all these years.

Joen: That’s true. I read a lot of your books. It’s always been my dream to meet you so I could tell you a bit more about financial services, about the mission that we do. I know that you can help spread what we know, so it was a good chance to let you know all the things that we know.

Bo: Can you share with us this mission, this crusade in your heart that’s been driving you for the past 10 years?

Joen: It’s about the statement “the rich get richer and the poor get poorer.” Our mission is to change that. The rich get richer, it’s good. But the average person also has the right to become wealthy and I know that with the right information, he will have the same opportunity as the wealthy people.

Bo: That’s wonderful. So the rich, yeah, they can get richer, so long as they share their riches. But you’re saying now that the average person can become rich as well.

Joen: Yes, if the average person understands what the wealthy people are doing, if he understands the right financial vehicles, then there is no reason to be poor. Sadly, the average person focuses on different things while the wealthy people focus on how to become wealthy and successful.

Bo: Can you give some specifics?

Joen: If I ask the average person, “What is the rate of return on your savings?” most of the time he does not know. But ask him about the rate of return on his debt, he’d know. It’s always at the back of his mind. But the wealthy people – they know the rate of return on their savings, when it will double, how much their money will be in so-and-so years.

Bo: You know, just yesterday I went to my bank and they gave me this leaflet on new interest rate. I was so shocked – it was 0.75% for a year! I thought it was at least 1%.

Joen: And that’s still gross. You still have to deduct 20% withholding tax. What a lot of people do not understand is this: that the bank is a good vehicle for business; but for your own personal savings, there are lots of other financial vehicles that you can use.

Most people think that by saving they’re already doing something right. But the fact is, you couldsave the right way and save the wrong way. And saving the wrong way, at the end of the day, will not change anything.

Bo: That’s a very important point. You know, Joen, my role is to give people the capacity to have a vision. I give them the capacity to dream. I remove their limiting beliefs – that I can’t do it, that I’m poor. So you’re absolutely right. People don’t have a vision of doubling their money.

Joen: A lot of people are like that – they do not understand that with a meager rate of return on their savings, they will never have a chance to become wealthy. But I can show you a way that, even if you save P20,000 for six years with a total of P120,000, over the years as it compounds, it can be P9.5 million.

Bo: Wow. So you’re saying, Joen, that if the average Filipino can save P1000 or P2000 a month, they can become a millionaire over time? But they need to know how to save, where to save.

Joen: Yes and at the same time they should have a vision where their money is going and how exactly their money can grow. All of us work hard for the money. But eventually if we know how to handle money, money can actually work for us. We can be the boss of our money and not the other way around.

Bo: OK, you’re saying, don’t put it in a bank, use the bank for business as loans, maybe business loans. But tell us, what vehicles are you talking about that can make one a millionaire over time?

Joen: One of the widely used financial vehicles right now, even is the US and Europe, is the mutual fund. In a mutual fund, your small amount of money becomes part of a very big fund. If that fund earns 12% or higher, whatever savings you have there will have an equal rate of return as the whole fund. Many people think that the mutual fund is for the wealthy. But in fact it was created for the average persons to earn equally with the wealthy people.

I look at a lot of Filipinos and they’re very focused on how to make money but that’s only 50% of the equation. The other 50% is learning how to let their money go back to them much faster.

Bo: That’s true. Is it safe to invest in a mutual fund?

Joen: A mutual fund is regulated by the government and managed by a professional person to let the money grow. It’s one of the safest vehicles to let your money grow and to have the best rate of return. They have what you call asset allocation. The fund is spread correctly and all that the fund manager does is to think how to let the fund grow. And because of regulation, it’s a very safe vehicle.

Bo: I’m sure we could go on and talking about this wonderful topic. One last thing before we end. You said that in the US, 20% of the people there put their long-term savings in the bank, but 70 or 80% put their money in mutual funds already. In the Philippines, it’s the opposite. Not even 1% of our people invest their money in mutual funds. And so you have a long way to go.

Joen: Yes, there are a lot of things to be done. But I believed that with the right information we can actually become like the US and there will be more money in mutual funds compared to the regular savings in the bank.

This article was originally published in Kerygma June 2008 | An interview By Bo Sanchez.
International Marketing Group’s mission to spread literary is most visible via the numerous FREE financial literacy seminars in Makati and major cities in the Philippines.

Free Financial Literacy Seminar

The Free Financial Seminars Now in Key Cities

Building Your Future

Take Control of Your Money!

Bring yourself, your family and friends to a FREE Personal Financial Coaching And Financial Literacy Seminar by the IMG – Truly Rich Maker Team.

To register for the seminar in

This is your path to financial freedom! We’re empowering people on money matters!
Become an expert in personal financial management. Budget, save and invest wisely.
Be Financially Fit! Get out of the rat race and start your journey to being Truly Rich!

*IMG-Truly Rich Maker Team will be conducting the seminar, NOT Bo Sanchez

Taking Control of Your Money

‘Building Your Future by Taking Control of Your Money’ is your first step to financial literacy

Is Money Controlling You? Or Do You Control Your Money?

With the IMG Financial Foundation Educational Program, you will learn how to:

  • Make money work for you
  • find and save more money
  • understand investments and build wealth
  • Protect and preserve your money

You can become your own Money Manager.
You can learn the habits of successful people.

Start by attending our FREE Build Your Future – Controlling your Money Seminar.
This is a two part seminar; a one hour lecture/presentation followed by personal financial coaching.

The seminar will discuss:

  • Challenging Future
  • Control Your Future
  • Do You Know How Money Works
  • Do You Know About Savings and Investments?
  • Do You Know About Life Insurance
  • Do You Know About Long Term Health Care
  • Do You Know About the High Cost of Education?
  • Protecting Your Future

After the seminar, you can apply for  IMG membership.

IMG members enjoy many benefits:

  • Lifetime Financial Education Workshop
  • Lifetime Financial Check-up
  • Discount on Major Real Estate
  • Asset Preservation Service
  • ZERO Load on Top Mutual Funds
  • Discounts on Car/Home Insurance
  • Access & Discounts on Life/Health Protection & Services
  • Access to Investment/Retirement Products
  • Build a Business in the Financial Industry
  • Subsidized Travel to Different Countries

Enroll to learn!

Have you ever attended seminars and workshops, and realized after the event, that you needed answers to some questions? Have you ever wished you can attend some seminar segments again, without paying for them again?

IMG members can attend our workshops any number of times, and get answers from the mentors/trainers

  1. Workshop. Increasing Cashflow. Debt Management
    • Analyzing your expenses.
    • Determining your worth.
    • Getting out of debt.
    • Becoming your own money manager.
    • Increasing your cashflow.
  2. Workshop. Building a Strong Financial Foundation. Proper Protection.
    • The X-curve. The law of increasing money and decreasing responsibility.
    • The DIME method.
    • Types of Life Insurance
    • Long term health care
  3. Workshop. Building Wealth. Asset Accumulation.
    • Wealth Formula.
    • The Hidden Cost of Waiting.
    • The Rule of 72. Understanding Interest.
    • Peso Cost Averaging.
    • Mutual Funds.
    • Passive vs. Active Management.
    • Saving for your Children’s Education.
  4. Workshop. Retirement Planning. Wealth Preservation.
    • Retirement Income
    • Estate Planning
    • Asset Preservation
  5. Workshop. Building a Business in the Financial Industry.
    • Do you know what you want?
    • Building a New Industry
    • Solution for the New Age
    • Be Part of Something Big
    • Travel the World!

Attend Seminars, Workshops and Trainings Any Number of Times
IMG members can attend advanced classes any number of times!
IMG has advanced classes for various financial concepts, products and services to enable members to better understand them.

Product Trainings
Learn financial products, industry trends and opportunities from the providers themselves!
We have regular product training for members, from our partner-providers. Learn about:

  • mutual funds, concepts, investment strategies and market trends from Rampver Financials
  • the many advantages of long term healthcare, about the differences of short-term vs long term healthcare, the differences between regular and senior-care short term health protection products from Kaiser International.
  • life insurance, the difference betweem term, endowment, whole-life and VUL, IUL insurance from Philamlife.
  • ongoing real estate projects, real estate investment strategies from SMDC, Vista Land, DMCI and Ayala Land.
  • asset preservation, setting up family corporations, maintaining corporations, from APS.
  • many other financial products and services from the other providers.

Enroll to invest and save on financial products!

Do you want to be free of debt?
Do you want to start saving?
Do you want to start investing?
Do you want to retire early?

Do you want to know how?
It starts with financial education and understanding how money works!

“I am recommending that you join these Meetings/Seminars in Makati because you will be guided how to grow your finances and become financially free!”

Click here to register for the seminar in

The Abundance Formula

The Abundance Formula

This is essentially the quick guide to the Abundance Formula.

The Poverty Formula

Many people are poor because they follow a very simple financial formula, which we call the Poverty Formula

Income – Expenses = Savings

This means people think of spending and paying others first before paying themselves.  This is why people remain poor.  If one is currently earning P20,000 per month, one thinks he will forever earn P20,000 or more.  Thus he spends P20,000 per month.  If anything is left over, he plans to use it as savings.  But more often than not, people spend the entire P20,000, and sometimes even more.  When they spend more, they go into debt, and begin spending money they have not yet earned.  This is a vicious cycle, and people go deeper into debt.

The Abundance Formula

We teach people to use a different financial formula, which we call the Abundance Formula.

Income – 10% Tithes – 20% Savings/Investment = Expenses

In this formula, we teach people to give 10% of what they earn as tithe, and 20% for savings and investment.  Then spend the remaining 70% on their other expenses.

Details of this formula are beyond the scope of this article ( and Brother Bo Sanchez wrote an entire book aptly titled “The Abundance Formula” to explain this simple formula, enumerating four simple steps that make good people rich ), but essentially it means pay yourself first, and save/invest 20% of your earnings for your future.

The Abundance Formula actually makes life very simple.  If one makes P20,000 per month, he gives 10% tithe (P2,000) to the Lord , saves 20% ( P4,000 ) and allocates P14,000 for expenses.  If one starts at age 25, a monthly investment of P4,000  translates to P48,000,000 (yes, P48 million) at age 65 if invested at a modest12% per year, or P88 million if invested at 14%.

But I am in Debt! How Can I Save When I Am In Debt?

The Abundance Formula works well even when you are currently in debt.  Use the 20% (or more) to retire your debt ( making sure you do not incur more debt ).

How Can I Save 20% ?

Many people say “But I spend 110% of what I make, how can I possibly live on 70% of my income?”

There are some who find it really difficult to make ends meet ( like if you are sending several kids to college, or feeding an extended family). But most people can find savings if they really want to.

Every P1,000 a month savings translates to at least P1M in 20 years.  That is only P33 per day.  Can you save P33 per day?

How much do you spend on softdrinks?
How much do you spend on junk food?
How much do you spend on Starbucks coffee, or C2 Iced Tea?
How much do you spend on short jeepney and tricycle rides?
How much do you spend on cigarrettes?
How much do you spend on cellphone load, lotto tickets?

Can you save a few hundred pesos every few weeks?

How much do you spend eating out?
How much do you spend in the movies?
How much do you spend in the beauty parlors? Spas?

Can you save a few thousand pesos every few months?

How much do you spend on gadgets?
How much do you spend on vacations?

Add up all the savings and if invested properly, each P1,000 can turn into P1,000,000 in 20 years.  For example, if you can save P3,500 per month, that can turn into P3,500,000 in 20 years.

Of course one should enjoy life and fruits of their labor, but just make sure what you spend for enjoyment is within budget in the 70% for expenses and not in the 20% for savings/investment.

Expand Your Means!

It is more important to increase your means than kill your dreams.  If  70% of P20,000 is not enough, do not take from the 20% you use to pay yourself.

The preferred way to savings is to find ways to expand your means and earn more.  Remember 70% of P30,000 is P21,000, which is even more than P20,000.   If you want to spend more, simply earn more.

If you are working for money 8 hours a day, five days a week, you have three options:

  1. work for money for more hours,
  2. work for money for more days, or
  3. make money work for you

Doing (1) or (2) is “easy” but you can only do so much because there are only 24 hours a day, and 7 days a week.  If you want to earn more and be rich, you need to be financially literate.

This will be a topic in a future article.

Attend a FREE Financial Planning and Coaching Seminar in Makati. to get you started with Financial Literacy.