I was privileged to listen live to Sir Ryan de Vera in a seminar sponsored by Pinoy Money Advisor. De Vera is the CEO of Wealth Builder Asia, a company that specializes in providing professional consultation services on wealth accumulation, preservation, and distribution.
Sharing here what I have learned from the seminar:
1. View Yourself As A Success
The first thing to do in order to attract wealth is to view yourself as a success. Sir Ryan advised to take a few minutes every morning to do a ‘Peptalk’ in front of the mirror. According to him, this boosts confidence, as if you’re ready to take on whatever’s ahead. In photo are some adjectives you can use in this Peptalk:
2. Pay Yourself First
This doesn’t mean that you should reward yourself with gifts by going on a shopping spree every payday. Paying oneself first means keeping a portion of your income for savings: something that your future self will thank you for. Your income isn’t meant to be spent all at once, some should be saved for future use.
3. Always Accumulate Money
And this brought us to Money Habit # 3: money accumulation. Always save 50% of increases, bonuses, and variable income. Since these do not regularly come your way, it doesn’t mean that you should spend them all in one go. You would have to adjust your lifestyle so that the remaining 50% would be enough.
4. Plan, Track, And Stick To Your Budget
To do this, determine your needs and wants. Are electricity and transportation needs or wants? How about luxury bags worth 1.5 million pesos? Your answer to this will identify how you can segregate your money through a budget.
Sir Ryan said that one should adjust this budget to accommodate all of life’s aspects. There should be money allocated for savings, growth, spending, enjoyment, and all you deem important. Much like what I have written in this post on budgeting *wink
5. Carefully Consider Your Expenses
It’s okay to spend money, but one must carefully consider each purchase. Never buy something just because it’s new (an example is iPhone X) or just because there is a mall-wide sale. Sir Ryan enumerates a number of money wasters that many do not realize they are committing:
- Unused Netflix, iFlix, Gym membership subscriptions
- Bank charges (when you check your balance or withdraw in ATMs not owned by your bank, usually Php 15 per transaction)
- Bottled water (500ml bottled water is Php 20 while 5Gallon purified water, the one in blue containers, costs only Php35; always bring a reusable tumbler to eliminate this expense)
- Coffee (there’s nothing wrong about getting your morning fix, but is it really necessary to buy from Starbucks every day? There are actually cheaper options like 3-in-1 coffee or brewing at home)
Avoid these money wasters. Protect your money at all times.
6. Eliminate and Prevent Debt
There are three types of debts: good, bad, and ugly debts.
Good Debt – you borrowed money to buy a house for your family
Bad Debt – you borrowed money and bought something you don’t need
Ugly Debt – you used your credit card to buy things and you don’t buy your credit card fees
Credit card usage is not all bad, in fact it gives you a good credit standing. However, this becomes ugly when you don’t pay your credit card in full. It’s still advisable though to pay in cash if you can.
If you ever find yourself in debt, the first thing to do is not to hide from the creditors. Talk to them properly and explain your situation. Make sure to tell them that you’re doing everything you can to alleviate the matter.
7. Investigate Before Investing
There are plenty of investment options available, but you should understand first what you’re entering before making any move. But why should everybody invest? Have you ever heard of ‘Inflation’?
Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. To illustrate, here is how much Max’s Fried Chicken, a very popular consumer brand, costs in 1945 and in 2016.
One should invest to beat inflation. Sir Ryan asked the audience who invests directly in the stock market and I proudly raised my hand. He also affirmed that long-term stocks investing with the brands that you use on a day-to-day basis is a good vehicle to multiply one’s money. He said that if done right, one could earn 19-20%.
But for those who are not that adept in stocks investing, he also recommends managed funds such as mutual funds, VULs, UITFs, and many others. The key is to start early so that you can nurture your money’s growth and you can comfortably enjoy your retirement.
8. Manage Risks
No one is resistant from risks. But there are three ways to manage risks:
- Absorb all risks
- Avoid all risks
- Utilize insurance companies
Health and life insurance are very important especially for those who already have their own families. Life insurance is necessary when you have dependents. Once the inevitable (sickness or death) happens, your family wouldn’t be burdened with the financial stress that the situation will bring. Your insurance will make everything easy for them. So the next time an insurance agent comes to you, listen first and take time to understand their proposals as they surely have something that you can benefit from.
9. Get Good Financial Advice
Your financial advisor should first and foremost be licensed. Many people get scammed because they deal with bogus brokers or advisors. Find one who also ‘walks the talk’, ask if he/she has already bought insurance from the company they are promoting or if he/she is practicing proper money management. Check if they are actually applying in their personal life what they are preaching at work.
Make sure that you are issued a receipt once you have paid for your insurance. That is a consumer right and ensures that the transaction is legitimate.
10. Get Paid More
Find ways to increase your income. As you progress in life, make sure that your value as an individual follows. You are the CEO of your own professional life.
Continue learning because more skills equate to more success and more money.
Sir Ryan ended his talk with:
Try to do these habits every day, and they will get you farther in life
Being wealthy definitely starts with seeing yourself’s worth and changing your mindset of money. It’s always a treat to listen to wealth management experts and this particular seminar was made even special as I was able to bring an officemate with me. She was then inspired to also make changes on her lifestyle, save money, and invest for her future. After all, that’s what I’m advocating here, right?
I hope more Filipinos will be financially literate and live comfortable lives. So if you are someone who would also like to change for the better, comment below and I’ll update you of future seminars like this.
Cheers to financial literacy!