Financial Wealth 101

Yesterday, I went to Shangrila Mall - 5th floor to attend a "wealth management" course. I've been mulling over attending one like this, while attending a Technopreneurship course this summer (only I was too lazy to actually look for one), and luckily, discovered that my groupmate (Anj) is actually a member of a community that conducts financial literacy seminars. So, trying to keep my excitement from showing over this newfound-discovery, I "casually" told Anj that I am interested in attending their seminars in the future. So, as luck would have it, I was invited to attend a coaching session at Trinoma one Friday afternoon (which didn't happen since I came in late and Anj wasn't around), and then in Shangrila the next Monday where Anj's team was actually based. I still came in late (1 hour, thanks to my poor navigational skills behind the steering wheel), and thankfully, was still accomodated. I choose "coaching session" as the more appropriate term since there were just 3 of them I saw seated across the Cravings resto, 2 from their community (including Anj) and another attendee, when I arrived. As they were already in the middle of the session (I like this group, they're always on time), Anj decided to fast-track me so I can catch up on the topics. She proceeded by first asking me questions about my own and my family's perceptions on money and wealth, and continued by clarifying misconceptions as we analyze my replies. The other two people are Coach Armand and Daphne, the other attendee. Truth be told, the first part was a bit of a bore, since I'm already familiar with the ideas, which doesn't deviate so much from what I've read from Rob. Kiyosaki's and Steve Covey's books. That time, I contented myself with observing how Anj explained things, and when I caught up and joined Armand and Daphne in the discussions, how Armand elucidated his points, and how Daphne answered some of the questions. The second part is much more interesting, since I was forced to examine my current financial situation (which I hadn't had time to think about that much as of late) and that I learned something new (for example, the money jars). The whole session took about 3 hours, which I think extended that long because I interviewed Armand and Anj extensively about their experiences in the community. After the session, we walked around the mall's 5th floor to meet some of the coaches (they were scattered all over, also in small groups, having their own mini sessions as well). I met Ivan, coaches Leo and Ryan, all of whom I had very congenial talk with. Overall, that was a satisfying session, with our coaches ably answering my questions and curiosities very well, and finding the people there very friendly. I signed up for the June 14 schedule for Module 2 of the Wealth course (which I now realize, is in conflict with a Monday class for this sem, huhu... I'm still doing some damage control efforts, as of the moment).

Anyway, before I forget, here are some key things I learned from Module 1:

• Entrepreneurs/Leaders see (and/or create) opportunities. Ordinary people wait for them.
• Regarding wealth, 5 things we should be cautious with: (a) working income, (b) savings, (c), investments, (d) investments, and (e) keeping a simple life. (note: I was asked to rate myself on this 5 things, and I flunked on the first 4 items. I was then tasked to think of at least 10 things I can do to improve my lot on those items I flunked in. I will "attempt" to list them down in my next blog entry.)
  
• Rich people achieve financial freedom by thinking smart. They increase their passive income. There are two types of passive income: (a) investment-type, and (b) passive business type. (I have a feeling their community is heavy on the second type).
  
• To achieve financial independence, partition your money into 6 jars:
  

1. Financial Freedom Account (FFA): 10% of money. Used for investment
2. Long Term Savings (LTS): 10% of money. Used to buy expensive items, such as a house, car, dream vacation
   
3. Education Account: 10% of money (specifically, for financial education)
   
4. Necessity Account: 50% of money. Used for daily needs
5. Play account: 10% of money. Used for personal whims.
   
6. "Give" account: 10% of money. Used for people who asks you for financial help.

So there. I spent almost a day in my life (that's including including the almost 4 hours I spent in writing this blog), thinking about money and how to increase it. What's tricky with this whole exercise is that I have to be aware and rid myself of conditioning, before I can appreciate the "abundance" mentality. Speaking of conditioning, when I was asked about what might be the hindrance to me achieving wealth (which I translated as a question on what reasons I may give which would keep me from being active in their community), I told them, "I might not have enough time I can dedicate to achieving wealth". That, I think is a manifestation of ill-conditioning well-ingrained in me. I was conditioned to think I don't have enough time with my PhD studies occupying much of my time, but in reality, I just don't manage my time well enough. That will be another entry. Right now, I need to focus on my research. =)