I was searching something in the internet and stumbled to a forum and saw this article. The posted version in the forum was incomplete so I surfed the internet again and found a nicer post from Qatar Living website. It was posted by an OFW and probably working in Qatar. My hunch is this article was made back in 2006 and already posted on many blogs and forum because it was very good and it struck me, especially my ego. To tell you the truth I’m lousy when it comes to managing cash flow and what adds to that is my spouse is worse than I am and again, what adds to my financial stress is my mother-in-law is with us. But in fairness to her, I’m not the only one who was helping her but also her daughter working in Dubai. Please don’t misinterpret that I consider my mother-in-law as a liability because I still consider her as my own mother and the fact that she was my wife’s mother. 
Anyway this article I got was anonymous so I could not thank the author for a well written with a dash of humor about the basics of cash flow. This article can motivate some or might offend others so my advice is don’t take it seriously if it has offended you. My apologies to my foreign readers who don’t understand Tagalog because the article was a combination of Tagalog and English which might not be comprehensible to you. So without much ado read the article below:
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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 ilocano… idjay ti kwa… djak maawatan… (joke lang po, seryoso na kayo eh…)
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.
Guys, esep-esep… 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!
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From that article, take note of what the author said:
Because, your experience here (your start up business) will teach you what to do in the future. It’s so hard to struggle in business when you are 60 yrs old.
He is not telling us to quit our job but to start NOW while we were still employed and young because after your company kicked your ass (sorry for that harsh words) and you are already a senior citizen, it will be very hard to learn the ins and out of a having your own business because as he said 9 out of 10 businesses usually fail. Pero you might ask “paano kung nalugi ang business? eh di hindi rin bumalik?” yes it’s true that your start up business might fail, but the experience is what matters most and that experience you gained is more valuable than money.
Posted by Manuel
Manuel Montala was an online entrepreneur who enjoys blogging about entrepreneurship and gathering information for his blog to help budding entrepreneurs. You can also reach him on twitter: http://twitter.com/mmontala
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{ 8 comments… read them below or add one }
I have an idea of making tooth picks but I really dont know what it really takes and actually would be the capital requirement in terms of machinery and costs.
Is there cheaper alternative oil used in soap making besides palm and vegitable oil because in Uganda those two types are relatively expensive yet soap is relatively cheap?
Maraming salamat sa pag-lathala nang mga magaganda mensahe mo malaki tulong ito sakin, iyaaplay ko to sa sarili ko. Sensyana mga kababayan hindi ko kasi mapigilan ang nararamdaman nang akin damdamin sa mga kwento ko ni Sir. Umpisahan ko na hehehe..Para nasasalamin ko ang sarili ko sa mga kwento, habang binabasa ko ang mga mensha ay napapaisip ako na tama nga si Sir ang asset ang dapat bilhin hindi liability marami narin ako narinig na mga sikat na tao pero isa lang din ang pinuntahan nila kundi sa paghihirap dahil sa pagbili nang liability…Isa na ako mahilig bumili nang mamahaling mga cellphone,gadget,laptop,relo,damit,sapatos,cup and more hindi ko nmn po ipinagmamayabang ang mga nabili ko sa inyo gusto ko lang ishare sa inyo na hindi magnda ang kinalabasan nang sobra pagbili nang liability,Napaisip nga ako sa mga mensahi ni Sir nasa pala ay ibinili ko nalang ng asset at hindi liability eh d sana ay mayroon na ako business,yan po ang naging ipekto sa labis na pagbili nang liability sa banda huli ay pagsisihan mo…eh k nga sa kasabihan na NASA HULI ANG PAGSISI…MAGTIPID NA TAYO MGA KABABAYAN AT MAGIPON PARA SA KINABUKASA NTN AT MGA MAHAL NTN SA BUHAY STOP BUYING LIABILITY BUY ASSET..GOD BLESS TO ALL MORE POWER………
hei,
ang tao may kanyang kangyang gusto, kung tao mahilig magnegosyo, cla mahilig bumili.kung walang bibili paano ang negosyo natin.
may sariling isip tayo kaya sana maunawaan nyo din. ok
@josh
oo nga naisip ko rin yan kasi kung walang bumibili ng mga gadgets na sinasabi ni mr. author ay hindi rin aasenso yung mga manufacturers. Siya nga rin ay may business din at car repair pa. Eh kung walang mga bumili ng kotse ay wala rin siyang negosyo. Kaya lang totoo rin nga ang sinabi niya tungkol sa mga taong ubos-ubos biyaya, pagdating ng panahon ay nakatunganga.
obviously hindi naintindihan ni josh ung sinabi nung author.. you can buy things you want but make sure that it came from your asset/profit.
Hey,
I think the mr. anonymous author read Robert Kiyosaki’s book “Rich Dad Poor Dad”. It’s the same principle, only mr. anonymous here made it a pinoy version. Read this book and you’ll understand more.
Anyways, you cannot easily change people’s mind set. Most people spend while others what to earn. Not all people with fancy cars, mansions, expensive jewerlies and designer clothes are rich poeple, they’re only living on high standards, but in reality, they’re not actually rich. But it’s in the Filipino blood or culture or whatever to sometimes show off that we can buy all these stuffs. As an OFW, I often get comments from foreigners that sees Filipinos as one day millionaires. (which is mostly true). I guess what mr.anonymous is trying to say is to invest the hard earned money to something that will feed you for the rest of your life and the generation next.
sapul na sapul nman tlga ako sa pinost mo mister, nai imagine ko nga na ganun ang mangyyari skin kaya lang ewan kba, prang di swerte skin ang business pero obsessed tlga ko na mgkron ng negosyo.halos lahat pinasok kna pero di nagki click…. but still m looking for a good opportunity to start up with, plagi klang ni re reason out sa sarili kna di lang un para sa kin and mhhanap ko din tlga ang tamang negosyo n ppasukin ko… sana wag nman ako umabot ng 60 bgo ko mahanap un…wish me luck!!
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