Let me state this bluntly straight: I was born financially poor. I grew up financially challenged but lived life the best way I can amidst life’s challenges. Today, I am NOT YET financially rich. Far from it. But somehow getting by or a little better than that. At least.
Let me tell you something:
On August 27, 2011, I met a crazy guy who taught his maids (yes, katulong) and driver to invest in the stock market. I was seated in a seminar room clueless of what will happen next. The first speaker just finished speaking and second second speaker was being introduced.
“Please welcome the man, our mentor, Bo Sanchez!”
The participants in the room stood up as they welcomed him with a rousing applause.
The Three Truths about Money
As the cheer ended, he started speaking.
I was glued to his every word. As I was listening to him, I was telling myself, “That’s right. I agree with him. All these time, I have been waiting for those words to be shared with me.”
That day was the liberation of the shackles of wrong mindset about money in me.
That day, I brought home three key learnings about money:
One, your God wants you to prosper. He takes pleasure in the prosperity of His servant. He doesn’t mind you getting rich as long as your lord is still Him – the God Almighty.
Two, money is not evil. It is neutral – not good or bad. It depends on how man uses it that makes it good or bad. And as it is written, “The love of money is the root of all evil.” But not money per se. Use money but do not “love” or “worship” it.
Three, the ultimate purpose of wealth is to love others. Money should be used to serve, to help other people. Money shall be used as a tool to serve the end goal – that is, to love.
Yes, those are the three powerful truths that we need to learn and relearn. Let these truths be ingrained in our being so it will make manifest in our lives.
Money Problems are Mind Problems
We need to start fixing our wrong beliefs about money.
As Bo says, “Most money problems are mind problems.” People want to get rich but they think getting rich is bad. Thus, they have to straighten up what they think about money. Because to start solving your money problems, you have to start solving your mind problems.
As a young boy, I dreamt of becoming rich. Coming from a poor family, money has always been a challenge. At times, the quarrels inside the home is caused by money problems. Money may not have been mentioned in their loud arguments but when you look closer and dig deeper, you will realize that one of the key factors is money.
I learned that while money is definitely not the most important thing, it affects the important things in life like family, relationships, health, and even faith.
But the problem is that we seem to ignore the importance of minding our money. But you see, the more that we do not have money, the more that we should learn about it. The more that we are far from being rich, the more that we need to learn what the rich thinks and does with money.
When I started working in 2010 and started earning, I knew I had to learn how to manage the money I was making. Not only that, I have to learn how to multiply the money I keep.
Practical Tip for You
Early on, I opened myself to lots of learning. One of those practical ones I got is the Abundance Formula by Bo Sanchez.
The formula goes: 100-10-20-70.
First, 100%. Earn 100%. Use your gifts, your skills, your talents. And be the best at what you do. Earn as much as you can.
Second, 10%. Give to the Lord what is due. Give 10% to the spiritual family that nourishes you.
Third, 20%. Keep the 20% of what you earn. Use it to build your emergency fund. And then invest the rest so you can make your money work for you. This is for your savings and investments.
Fourth, 70%. That is what remains after you remove the 10% and 20%. Use it for your expenses – to pay your bills, food, transportation, rent, etc.
Note that in the formula, you have to save first before spending. You will notice that this supports what they say, ‘pay yourself first.’ This is one of the secrets of the rich. Saving comes first before spending. It is wrong to save what is left after spending because expenses would always be big and if you won’t take away immediately what you should be saving, the tendency is that you won’t have something left after spending. The right strategy is to save by setting it aside immediately before you start spending.
In the past, even if I knew the importance of saving, I wasn’t able to save up. It was because I save what’s left after spending. Only when I started to save first before spending that my savings started to grow.
As an employee, here’s what I did: I opened another account with the same bank as my payroll account. Every pay day, before I withdraw money for my expenses, I transfer a certain percentage (ie. 20%) of my income to my other account. I registered for online banking so I simply do it online to remove the hassle of going to the bank and line up for hours. I had to make the task easy and convenient for me so I will be more consistent.
Your Turn for Action
I am not lending or giving away money here. No! But I am offering you free learning that is worth your time, effort, and money (if you pay for it). So, having learned about the right money mindset and one simple formula, what is your plan of action?
What action will you take to apply this learning and start taking charge of your financial life? Do it now!
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"I enjoyed Chris' book. I know it will help many, many people."
- Bo Sanchez, bestselling author