2. Why I Created This…
• In my 8 years of experience as a
financial planner, I rarely get to see
people who are so organized with
their finances, and have their goals so
clear in their minds.
• At one point, I started telling clients to
open one account per goal. And I
have seen how this has changed their
attitude toward their finances.
• I can see their enthusiasm, that kind
of satisfaction in knowing that they
are able to target goals one at a time.
3. • I really specialize in helping people with Plan Zero
or first time investors.
• And I am thrilled whenever my clients would
more openly talk about their aspirations because
they realized that it is possible to reach them.
• Note however that this whole process takes a lot
of time and it will usually entail sacrifices.
• This presentation involves a lot of new concepts
that will take more than one sitting to digest.
4. • Some Questions
• Step 1: Where do my earnings go?
• Difference Between Asset and Liability
• Step 2: Target, Allocate and “Plant”
• Step 3: Think Ahead and Reevaluate
• Step 4: Harvest Time!!!
• Time Value of Money
5. Have you wondered?....
• How much will my lifetime’s worth of efforts
to work amount to?
• If I will continue with my daily efforts, will I be
able to reach my goals?
6. More Questions…
• Can I afford to get married and have children?
• Will I be able to retire well?
• Will I be able to travel the world?
• Will I be able to open a business?
• Are my earnings going to the fulfillment of these
goals?
7. While you don’t have much financial
obligations yet and while you still
have a lot of options…
8. Step 1: Where do my earnings go?
Make a list of all your
expenses
Absolute Essentials –
house/rent, electricity, food,
transportation, education
Variable Expenses – Gimmick,
leisure, clothing
9. • Keep your expenses to the minimum. The smaller the
monthly expenses, the more flexible your financial plan
can be.
• Anticipate Emergencies. Set aside 3-6 months worth of
income for these.
• It would help if you can give yourself a budgeted
weekly allowance for work so that you can have
control over your finances
• Weed out expenses that can be avoided or decreased.
• Finally, know how much you can set aside for savings.
11. An Asset puts money in
your pocket.
A Liability takes away
money out of your pocket.
Buy more assets and limit
liabilities.
A house and a car are
liabilities. The bigger the
house, and the more
expensive the car, the
higher your expenses will
be.
12. Step 2: Target, Allocate and Plant
If you can save for your first million, for what
purpose will it be?
Retirement?
Travel?
Education?
Business?
Just for passive income?
CHOOSE ONE =)
13. Php 170 per day
• You will get approximately Php 1M by year 12
• Will give you insurance coverage of Php 1M
• Guaranteed Php 1M cash in case of critical
Illness (insurance coverage will be advanced)
* Insurance rates vary depending on age. Php 1M by year 12 assumes that the average annual
earnings of the mutual funds is 10% per year.
14. Once you get your Php 1,000,000…
• You can either:
• Get the Php 1,000,000 lump sum and just
leave some money for insurance charges for
you to be still covered
• Let it earn passive income. Asssuming that
our mutual funds earn an average of 10%,
your Php 1M can earn Php 100,000 per year.
15. The path is rarely a straight line…
A doctor, after
residency would
have temporary
decrease in
income once he or
she starts to open
clinic
I would like to
stop working for a
few years to focus
on my children.
I would like to
stop working to
work on my
Masters
I want to
change career
or open a
business
16. Catastrophes and Unexpected Needs
can come…
Prolonged
Hospitalization
Business
Loses
Money
Disability
Emergencies Unexpected Expenses
18. Match Your Cashflow With Your Goals
REVENUE
Will I be needing additional source of income to
reach my goals?
EXPENSES
Will I need to cut down my expenses to reach my goals?
SAVINGS
Am I happy with the amount that I am able to
save?
19. How determined are you to save for
your GOALS?
There will come a time
when you will wonder….
Why am I making so many
sacrifices…?
Ang tagal pa bago ko
makuha yung pera!
If hard times will come,
are you willing to make
a LOAN just to continue
the plan that you have
started?
21. Step 4: Harvest Time!!!
This is my vision for all my clients…
22. Your investment’s yearly growth must exceed:
to keep up with inflation or rise in prices of
commodities
to keep up with the annual tuition fee increase
