I have often hesitated sharing my thoughts on topics such as network marketing, because for one, I don’t have much to share to begin with.  I was not confident enough to share what limited knowledge I had about the industry.  I didn’t want to share with you mere hearsay or what someone else has experienced good or bad.

Now, I know a little bit more and have gained first-hand experience to at least share with you simple tips to help you avoid falling into scams that has given this industry a lot of bad reputation.

First of all, let’s define what network marketing is so we all start off from the same page.

“Network Marketing is a system of moving products from the factory to the consumer, through an organization of users, retailers and network builders.” 

Secondly, I highly encourage you to CLICK HERE to watch a video explaining how network marketing model really works and how is it different from other distribution models.  The video features an interview with a university professor who holds a PhD in Business Administration from Harvard University who is involved on researching, teaching and consulting about network marketing.

Lastly, I want to help you avoid falling into ponzi schemes or pyramid scams.  After learning more about the industry, it has become one of my advocacies to help educate people on legitimate and professional ways to build a network marketing business…and more importantly, if you decide to become part of this industry, to help you build your business with the right foundation of integrity, honesty and sincere desire to help other people get what they want in life.

Here are 5 questions you need to ask before joining a network marketing company.

1) Who are the owners of the company? 

What are their backgrounds in terms of starting and running a business, especially a network marketing business?  Every industry is different.  Some people may be good with traditional businesses, or have succeeded in franchising, but it doesn’t necessarily mean they will succeed using a network marketing business model.  How many years have they been in business? What is their mission and vision?  What are their core values? Is it aligned with what you believe in?

You need to understand that a huge part of business success is about the people who own or are running the company.  The owners, as well as the CEO, and the other employees who will be there face to face with your customers will make or break your business.  You need to think like an investor who is looking for a CEO to run your own company.  If you have doubts about their background, or worse, you don’t even know who the owners of your company are, better STOP and do more due diligence than regret losing your hard earned money in the end.

2) What is the track record of the company?

How stable is the company?  A lot of the bad reputation the industry has been getting is based on some companies’ poor track record.  Not a few companies have started so fast but folded up in a few years. As a consequence, many distributors were left hanging in the end.

The thing to understand about a network marketing business, is that IT IS still a business. The success ratio still applies: 9 out of 10 businesses fail in the first 5 years; and for those who survive, 1 out of 10 of them will fail in the next 5 years.  The simple reason? Any start up business will go through growing pains.   The systems are still being built and not yet in place.  If the systems break down, the business collapses. That’s why, you need a great visionary team running the company, who will make good decisions and never compromise money over the long term health of the business.  You need people who are going to be there for the long term.

How long is considered stable?  A good benchmark is at least 10 years.  By then, the systems are already in place and has proven to work through business cycles like economic recessions and depressions.

3) How is the product different from those in the market?

After watching the video earlier, I hope you at least have an idea how different the distribution model of network marketing companies are compared to traditional ones.  Different they may be, both, however, have the same goal in mind — move the product from the factory to the consumer.

There are three things to consider when looking at the companies’ products: 1) it must have unique selling proposition, it must be of high quality and 3) it must be consumable.

First, the product should have a unique selling proposition.  You cannot sell a product, distribute it via network marketing and have that same product also distributed in traditional retail stores.  Just think, if the same product is available in your neighborhood grocery store, why go through all the trouble and buy it from somewhere else?

Second, the product must be of high quality. The good thing about network marketing is that because it minimizes the distribution cost, the products tend to be of higher quality.  This ensures that it gets the better end of the network being a two-edged sword.  People talk about great products.  But they talk MORE about bad products.  So if you are in a network marketing business, your products must be top-notch, otherwise, your network’s multiplying advantage may even be your worst enemy.

Third, you want your products to be consumable.  You want your customers to keep coming back to use your products.  That’s the only way to build loyal customers.  That applies to a traditional business, but even more so for a network marketing business.  And you can only do that if your product is of high quality.

4) Where are the sales coming from?

There are two-sides to a legitimate network marketing business.  One, is direct sales, where you buy a product at a lower price and sell it higher for a profit.  The other side is in sponsoring other people to help you sell more products to more users, retailers and network builders.  Normally, the company will give you a start up kit or enrollment pack which contains your initial inventory of products.

To know if the company is legitimate or not, you need to watch out whether the direct-sale activities balance with the sponsoring side of the business.  If the sales are coming mainly from direct sales with minimal sponsoring activities, then it is operating mostly as a direct sales business.  On the other hand, if the sales of the company are coming mostly from selling of start-up kits or enrollment packs, and not much is coming from direct sales, then the company is bordering on becoming a pyramid scam or ponzi scheme.  The company may be legitimate, but if the only thing they are selling is the startup kit, and there are no repeat purchases from satisfied customers, then sooner than later, the company will also fold up.

Obviously, the commissions should be based on how many products were sold and how many repeat purchases there are, and NOT based on the number of people who signed-up.  In the end, the heart of a business is still and will always be satisified customers.

5) How fair is the compensation plan?

Is the compensation plan built upon rewarding only those people at the top? Is it possible for someone new to surpass the earnings of those who have joined the company earlier?  How will you be rewarded?

How healthy is the financial condition of the company? Has the company put in place control mechanisms to ensure the long term health of the company?  Obviously, the company has to make profits as well as give a fair share to the distributors.  If all profits are given to distributors, it is just a matter of time before the company folds up and the owner runs away with your money in his pocket.

You also need to ask yourself how many people have already succeeded in the company, and what are your chances as a new distributor to succeed as well?  What available training and support will you get in order to achieve the same or greater level of success in the business?  What challenges will you expect if you decided to pursue this business to get the results you want? These are simple questions you need to ask to really understand what you are getting into.  Network marketing business can give you potential residual or even passive income, but it doesn’t happen overnight.  It is certainly not easy, but it can be done.

The above 5 tips is just a simple list you can refer to before joining a network marketing company.  My hope is that you keep this handy list with you when you start exploring getting into a network marketing business.   The world has changed…and one of those changes is the coming of age of the network marketing industry.  It has even been tagged as the “business of the 21st century” by Robert Kiyosaki, the famous author of Rich Dad, Poor Dad.  The only question is whether you will become part of it or not.

Starting a network marketing business can be your gateway to success if you do it right.  It will most likely change your life for the better if you work on it and do your own due diligence.  In the end, it is all up to you.  Be driven.  Be careful.  Be wise.

Cheers to your success!

P.S.  If you want to discover the 7 Great Lies About Network Marketing, CLICK HERE to mail me so I can send you the FREE ebook give-away.
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At the start of the year, I shared with you 3 personal goals I had in mind.  One is financial in nature, the other two is for my health and personal development.

Goal #1: 3 income streams earning $100 each per month

The journey in achieving this goal has surprised me more than anything else.  Last March, I was on my way to earning at least $100 income from affiliate income from this blog as well as ebook sales.  I had to turn off Google adsense because while I already earned my first $100, I didn’t feel it was aligned with my long term goals for this site.

For the past few months my affiliate earnings from Bo Sanchez’ Truly Rich Club has been pretty consistent.  It actually reached around $65 for the month of May.  My affiliate earnings to Jomar Hilario’s Workshops and Seminar climbed up to $157 on the same month.  The thing was, while my site got hacked, went down and its traffic plummetted to zero overnight last month, my affiliate earnings were hardly impacted at all. As for the ebook, that’s another story.  It has not been doing very well the past few months.

But the most surprising thing I’ve experienced for the first half of the year is the result from one of my new ventures which was 5x all my affiliate earnings combined for the month.  That’s why, like an aspiring entrepreneur would do, I’ve had to re-align my resources to focus on this new venture of mine.   I’ve also had to reassess my goals for the year, given that I may not need 3 income streams to hit $100 each anymore.  Focusing on one can practically earn more than the three combined.  My financial goal has changed, and that’s one of the topics I will be sharing with you the rest of the year.

Goal #2:  Weigh no more than 176 pounds by December 31, 2011

One of the main challenges I’ve encoutered over the past few months is in looking for healthier food to eat.  Given the proximity of our condo to the mall and the convenience of a 24-hour store nearby, sometimes, it’s hard to convince myself to make the extra effort of looking for healthier food options.  Compound that with the seemingly hectic (but actually just mismanaged) time that I have, that’s a constant battle I have to face everyday. 

From my last quarter’s update, I was able to lose 13 pounds to bring down my weight from 200 pounds to around 187 pounds.  I’ve had to change my habits to a healthier lifestyle over the past couple of months as part of my regimen to make that happen.  And even though I still haven’t reached my goal, I still think I am on the right track to hit it by the end of this year. My goal is only a few pounds away as I am sitting comfortably at 181 pounds at the moment. 

One of the great blessings I got in losing those extra pounds has to do with being able to stay healthy and not get sick as often as before.  While I got sick because of stress and exhaustion due to my hectic schedule last month, I was able to get back to the office with only a day of rest.  Compare that to the whole 2 weeks of vacation ruined last Christmas when I had to battle through with colds and fever while going on a 3-day vacation with my wife in Bohol. 

I’ve never felt healthier in my life.  It really surprises me that when I go up the stairs in the MRT station, I no longer need to catch my breath.  In fact, I even take 2 steps at a time when I am in a hurry.  Life is good, indeed!

Goal #3: Go somewhere I’ve never been to once every quarter.

This is a goal I’ve struggled to accomplish over the past 6 months and continue to struggle with as I look for travel opportunities for the next half of the year.

The last vacation I had was with my wife and her friends in Fontana Resort.  I had lots of fun.  The only problem? I’ve been to Fontana before a few years back.  So I’m stil zero out of 2 for this year.  I really need to catch up fast.  Summer is gone and rainy season is here.

Looking back, I can give you a lot of reasons why I couldn’t take a vacation or go out of town.  I have no time.  I have a hectic schedule.  My boss won’t allow me.  In the end, though, they are all excuses.  Instead of dwelling on those excuses, I think a more positive thing for me to do right now is to "just do it."

What amazes me is that while I’ve not had some vacation time the past months, I’ve had a lot of opportunities to catch up with old friends lately over dinner or a cup of coffee.  It’s really amazing how time seem to stand still when you and your friends share old memories together and laugh at ridiculous things you did in the past.  It’s really a great blessing to have such great friends.  That alone makes me believe that God has really blessed me tremendously all these years.

Looking ahead to the rest of the year

I realized that in almost anything worth doing, you have to put in the time and effort to really see significant results.  To tell you honestly, I’ve had days when I didn’t do anything at all on this site.  If you noticed, I only had one article written for the whole month of June and July.  There were times when I had to re-assess what I really wanted to do with this site…and that also means I had to rediscover what I really wanted in life.  Is it money?  Is it freedom? Is it being able to help others in however way I can?

While I have been blessed financially at my daytime job, I still wonder whether there’s more to life than just financial blessings. The more I think about it, the more I realize that one thing I don’t have is TIME.  I am still a slave of the 9-to-5 job and all the things that come with it. My dream is to be able to have control of my own time.  I want to be able to work on things that I really enjoy, and in the process, contribute however I can to also help inspire other people discover what it is they truly want in life.

How about you? How’s your first half of the year been so far?

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Thanks for visiting Rich Money Habits by akosiallan.com.  My blog www.akosiallan.com got hacked a few days ago and my old hosting account was cancelled as a result…I thought this will also be a good time to overhaul the whole Rich Money Habits blog so please be patient if the rebuilding takes quite a bit of time.

Anyway, I hope to have the site up and running as soon as possible so you can enjoy the helpful money tips and articles once again.  While waiting, I encourage you to consider signing-up to my newsletter by filling-up the form below and receive the 8 ways to shift your money habits and be rich email series.  It’s totally FREE!

God bless you!

Sincerely,

Allan Inocente

Last weekend, I had the great fortune to host another round of Rich Money Habits Cashflow Workshop.  And I couldn’t have prepared myself for the suprise that I was about to witness — a janitor beating a doctor in the cashflow game.  It happened.  It really happened.

How did it happen?  Simple.  The janitor took advantage of the opportunities that came his way, even though he had little money to begin with.  In the end, he got out of the rat race and achieved his dream.  The doctor, on the other hand, was a little bit more careful and took his time investing in opportunities.  While he was able to generate a lot of passive income, in the end, he wasn’t able to get out of the rat race.

Of course, it helped that the janitor only had minimal expenses, so he only needed a few extra passive income to get out of the rat race.  But then again, he also did not let his meager paycheck affect his willingness to invest in income-producing assets.  Even when the deal was “too big” for a janitor’s income, he still managed to face his fears and take advantage of the opportunity.  In short, he invested in income-producing assets and when the market turned up, he sold those assets and got a hefty sum that allowed him to invest some more.

The doctor, on the other hand, wasn’t doing bad financially at all.  In fact, he actually acquired more properties, earning him more passive income than the janitor.  How many? A lot more, I would say.

Why then was he not able to get out of the rat race?  Reason? He had a high expense.  That high expense spelled the difference.  Because of the high expense, he needed to do a lot more than the janitor.  Whereas the janitor needed only 2 properties to get out of the rat race, the doctor was only half way to getting out after acquiring about 10 properties.

It appears a story like this happens only on fairy tales.  A happy ending.  A triumph of David vs Goliath.  But the message is clear.  It isn’t so much about how much money you make.  It is also about how much you spend, and how you invest the difference so you can get out of the rat race faster.

Taking this important lesson to real-life, here are things you can do to help you get out of the rat race.

1) Take charge of your cashflow

As my good friend Jay Castillo mentioned in one of his popular articles, you should become the CFO (Chief Financial Officer) of your own financial life.  You have to treat yourself as a business enterprise.  You have to look at your finances from an eye of a business tycoon.  How much money is coming in (salary, side businesses, investment income, etc), how much money is going out (rent, food, car, starbucks, etc), and how you are going to invest the difference.

2) Take the right mindset

Having the right mindset will help you build the right money habits which will lay out a good foundation to your financial journey.  It is not about getting rich quick by taking advantage of other people.  Nor is it getting rich winning the lottery. It is not about getting rich being a crook, or a dishonest politician, or an evil-villain in movies or soap operas.  It is about being rich with integrity and honesty by providing value to a lot of people.  It is about being rich so you can bless more people.

3) Take baby steps

One of the most dangerous things you want to get your mind off is the idea of winning a one-time BIG-time fortune.  It just doesn’t happen that way.  Take baby steps.  You start small.  You learn.  You grow.  Once you learn the lesson, you’ll be able to handle the responsibility when the BIG fortunes come your way.  Having the BIG fortune when your not ready can even be detrimental to your growth.  Ask any of those who won the lottery and ended up poorer a few years after winning.

4) Take your time

Be patient.  It will not happen overnight.  It takes time to learn the right mindset, to develop yourself to be able to do the things that you need to do to provide value to other people.  You will go through a lot of discouragements.  But all people who have accomplished great things have gone through trials.  It just makes the victory even sweeter.  Just like wine, the longer the wait, the tastier it becomes.

5) Take responsibility

One thing all great people have in common is that they take responsibility of their results.  If you fail, it’s your fault.  If you succeed, it’s also your fault.  There are no excuses.  We are dealt with the same lemons every now and then.  It is up to you to take those lemons and turn them into a lemonade.  It’s never a question of being lucky or being dealt with a fair amount of challenges.  Time and time again, the thing that makes people great is never in the amount of challenges they have to face.  It is in the realization that they have a tremendous power to take on those challenges, if only they believe in themselves enough and the God who made them.

Go out there and be rich with honesty, integrity and humility.

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There were two great news in this session of Cashflow 101 game compared to last time —

First and foremost, all participants got out of the rat race.  Congratulations to the participants!  Yehey!  Granted, it took some time for some of the participants to get out.  In the end, however, when one of them finally got out, like magic, everyone followed suit and got out in no time at all.  It could be because they saw that getting out of the rat race is indeed possible.  Everyone focused on making more passive income from then on so they too can also get out of the rat race.  In hindsight, I realized that this is also true in real life.  The more like-minded people you surround yourself with, the more people will support you and cheer you on as you go for your dream of financial freedom.

Second, we had the luxury of time and we were able to enjoy the game without getting kicked out of the restaurant.  The first time I hosted a Cashflow 101 game in Tapa King Edsa Central, we were kicked out because apparently playing cashflow boardgame is prohibited inside the restaurant.  We were lucky the caretaker still allowed us to play the game if only for a couple of hours.  But when the guard saw us, the caretaker didn’t have any other choice than to request us to stop playing, even though we weren’t done yet…just when the participants were now beginning to see how the cashflow 101 game works.  I felt really bad for the participants and promised myself never to allow a similar experience to happen again.

Hosting the second cashflow 101 session had its own challenges but the fact that everyone got out of the rat race was a reward in itself.  It was a gratifying experience witnessing the participants get out of the rat race and cross over to the fast track.  Seeing their spirits come alive and become animated as they celebrate their personal victory is truly an amazing experience.

After the game, I asked the participants what realizations they’ve had while playing the game.  Here are 5 lessons they’ve willingly shared that I am now passing on to you so you too can learn from them as well.

1) It’s OK to start all over again. 

One of the players over leveraged and got into debt so much so that he was already paying more money than what he was able to earn.  In short, his expenses was greater than his income.  Whenever he passes by the “Paycheck” cell, instead of receiving income, he now shells out extra cash to pay out his debts.

Needless to say, this led to his downfall as he eventually filed for BANKRUPTCY.  After declaring bankruptcy, he had to sell off all his assets for half the price.  After selling his “assets” off and paying his debts, he finally got into a positive cashflow situation.

That means, he had extra money at the end of the month again.  The surprising thing was, after getting rid of his “asset” he was actually better off.  He had lots of cash and he didn’t have to pay every month for his “asset”.  What he considered to be an asset was actually eating him alive because of the HUGE loans, causing him to file for bankruptcy.

Does this sound familiar?  I think this is very similar to the housing crisis a couple of years back, and still being felt up to this day.

2) It’s OK to borrow money as long as your asset is paying for it.

One of the most popular advise you will get is to NEVER borrow money.  And it certainly is a wise advise, especially if you are still learning your way to financial literacy and you don’t have the discipline to pay off what you owe.

The surprising thing was, because of the law of leverage, those who bought assets turned out to be in better position to take advantage of opportunities when the market changed.  For example, in the game when someone draws out a market card, it could turn out positive changes to the players.  Someone may be looking to buy for a new house.  And because you have the property, you get to sell it to him.

Of course, it is not always as rosy as it sounds.  One time during the game, someone drew a catastrophic market card — a financial crisis, if you may.  Tenants could no longer pay rent.  Everyone who had 3 bedroom/ 2 bath houses was affected and the owner had to let go of their properties.  Ouch.

3) It’s OK if you want to play it safe, you can still get out of the rat race

One of the players was very conscious about getting into debt, even though it was only a game.  At first, she was focusing on the paycheck and wanted to earn more, feeling safe with the money that she had.  She avoided debts as much as possible and ensured she always had extra cash at hand.  She occassionally invested in mutual funds and stocks throughout the game.

In the end, even she was able to get out of the rat race.  She didn’t have to quit her job.  In fact, after getting out of the rat race, she now has the option to still do what she’s always done.  But the good thing is, she’s no longer tied to her job anymore.  She can quit anytime she wants, and the passive income will still be able to cover her monthly expenses.  Isn’t that great?

The lesson? You can still get out of the rat race even if you’re afraid of debts.  You don’t have to despair if you find out you’re afraid of risks.  You can still get out of the rat race.

Of course, while the game went on, she had to shift her focus from paycheck to opportunities.  One time, she was even complaining why she landed on paycheck instead of opportunity.  At the time, she was almost out of the rat race.  One small deal was enough for her to become financially free.  In that context, it’s understandable why she wanted to land on another opportunity instead of a paycheck.

4) It’s OK to give away what you seek the most

It is sometimes counterintuitive to give away what you seek most.  Your tendency is to keep what you have for as long as you can.  In reality, however, keeping it to yourself does more damage to you because of the feeling of scarcity that you’re telling your mind.  Instead, do what one of the players did.  Here’s how.

The same player who went into bankruptcy had the habit of donating to charities, even when he was financially struggling. The surprising thing was, he eventually managed to get up and get out of the rat race even with the bankruptcy.  The fact is, he even surpassed and got out ahead of some of the other players.

He mastered the flow of money by starting to be generous with what he had. It is truly mind boggling how things fall into place when you set your priorities straight.

5) It’s OK to be the last one to get out of the rat race

It doesn’t matter whether all other players are already out of the rat race, although I might say, it can be demoralizing sometimes.  When that happens, know that we all start out somewhere.  Perhaps, one was able to get out of the rat race faster because she had only minimal expenses.  Or perhaps, she took advantage an opportunity and the market rewarded her investments.  The important thing is YOU are able to get out of the rat race.  It is your personal victory.

It’s inevitable to compare your results with other people.  It’s just what we normal humans do.  But instead of living your life in despair, use that motivation to be inspired instead.  You can say, “if they can get out the rat race, it only means, I too can get out as well!”.  Keep the positive attitude up, and sooner than later, you too will celebrate your day of financial freedom. Cheers!

Readers, have you played Cashflow 101 game board?  What other lessons can you add into the above list?

P.S.  Ready to play cashflow 101 in real-life?  CLICK HERE to email me.

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Financial Goal #1 – Three streams of passive income earning $100 per month each

For the first goal, the short status is that it’s halfway there.  I’ve shared my income report from Google adsense and the earnings form my ebook launching in one of my recent posts.  While they are not yet earning $100 per month, the income has been up to a great start!

The ebook is not selling as much as I hoped for but I am not one to complain because it is purely passive income.  I hardly do anything aside from promoting the ebook, which I must admit I am not doing a very good job at.  Besides, I am learning a lot just figuring out ways on how the ebook can be made more useful and how it can reach a lot more people.  That’s why I am excited because in the coming weeks there will be a lot more exciting things happening here at Rich Money Habits.

Also, Red asked me thru the comment section of one of my recent articles whether I’d be willing to share how much I am earning from being an affiliate of Truly Rich Club.  I sometimes hesitate sharing actual financial results because it might be taken the wrong way.  However, I feel being transparent to you and helping inspire you in your own journey is more important than my own fears.  So here it is.

The great thing about it is that I didn’t have to create a product or ship anything.  All I did is recommend a great product that I personally use myself, and would be very happy to recommend anyway with or without the affiliate income.

One of the challenges I’ve faced as an affiliate, however, was that because I didn’t have a way to contact those who signed-up as a result of my referral, I have no way to reach them and say thank you…and may be even give them a free gift or something.  That’s one of the reasons why I launched my own product so that I can have more control and be able to give freebies anytime I want.

One thing you will notice in the report is that the affiliate income started only last May 2010, more than a year after my wife and I already signed-up as members to the Truly Rich Club.  I honestly cannot remember why it started so late, but the great thing is, even if it was only a very very small amount in the beginning, it consistenly grew to PhP2,572.80 just last month.  That’s US $59.83 already, more than half of my $100 goal!

There are other streams of income I’m planning to launch in the near future that are still in the exploratory stage, but I don’t want to spoil the fun and surprise.  You’ll hear more about them once there’s something more concrete to talk about.  In any case, the first quarter has been a great learning experience so far, one I totally didn’t expect.

Financial Goal #2 – Weigh No More Than 85 kgs

At the start of the year, I finally got the initiative to use our condo’s gym.  Jog on the treadmill for 20 minutes a day, 3 times a week — that was my goal.  I was able to do it consistently for the first few weeks and lost a few pounds…But after a few weeks of not going to the gym, I gained it all back.  My wife and I even bought a Wii Fit board, just to get some added motivation in trying to enjoy exercising, but after a few weeks, we hardly ever use it anymore.

I also started trying to eat healthy.  After learning from Bo’s book ‘Awaken the Healer In You’ that drinking fresh fruit juice can be a very healthy morning habit, my wife and I invested in a juicer that was offered at a 50% discount in one of our visit to the mall.  So we started using the juicer in the morning and got ourselves small cups of fruit juice.

The only problem – we had to clean up the juicer ourselves.  It’s not too much, but sometimes when you’re in a hurry to get to work in the morning, the last thing you want to do is spend some time washing your juicer.   So after a few weeks of being very busy, getting our daily juice in the morning became less frequent.  Of course, I could have hired a house helper to do that.  And it is certainly part of our long term plan.  But the thing is, our condo is small and just enough for me and my wife.  Getting a stay-in house helper doesn’t look like a good idea at this point.

Then I discovered Nutrimeal, a nutritious mixed protein drink designed for those who are trying to manage their weight.  I followed the recommended RESET program and in 10 days, I lost 8.6 pounds safely and easily without needing to starve myself and hardly any exercise at all.  I’m currently at 187.10 pounds, just a hair thin away from my goal of 85kgs (i.e 187 pounds)…almost there! Yey! And because it is very easy to prepare, I can have my “meal” in just 45 seconds.  This solved my problem of not having any time to prepare a decent meal as I rush off to work in the morning.

The first time I took my weight and BMI was around January, when we bought the Wii Fit board.  Just for fun, I tried checking my weight again after the 10 days of RESET program was over.  Here’s a picture of my Wii Weight Loss Chart at exactly 190 pounds.  I actually went down from being an Obese to just Overweight.  And even though it’s not yet under the “normal” range, the funny thing is that I’m still very very happy because for the first time, I am now seeing some tangible results.  There is hope indeed!

After another 10 days, I weighed myself again on the Wii Fit board and was even more delighted to find out that I’ve lost another 2.9 pounds. Sweet! Now, I feel more confident going to the beach!

I am not sharing these to you to brag but to help inspire you to keep on going for your goals and dreams no matter what they are.  I’ve tried a lot of ways to achieve the results I wanted…a lot of them failed.  But finally, one worked and my goal is now closer than I think.  I have no doubt in my mind that I will be able to get to 85kgs (187 pounds) in no time flat.  In fact, I am now re-setting my weight goal to now target 80 kgs by December 31, 2011 instead.  My wish is that you achieve your fitness goals too.

If you are also trying to lose weight (and has seen limited success so far), this may be for you.  Unfortunately, you cannot get the Nutrimeal from grocery stores or even at any retail stores like Health Options.   If you want to find out how you too can get it, you can simply email me. No, this is nothing illegal or unsafe so don’t worry.  I am no drug dealer, alright.

Financial Goal #3 – Go somewhere I’ve never been to every quarter.

This is one area I’m struggling with.  Both because I’m always very busy at work and also for personal reasons I want to keep private for now.  In any case, this is still one of my most cherished goals.

Recently, my wife and I spent a nice weekend getaway in Tagaytay.  But that doesn’t count, because I’ve been to Tagaytay before.  In fact, our wedding a few years ago was held somewhere in Tagaytay.  So it’s a place close to my heart.

The reason I really want to travel is so that I can explore other places and meet other people, learn other culture and just be amazed.  Sometimes, with the very hectic schedule at work, and the many urgent deadlines, I feel the fast-paced lifestyle is draining my energy.  I long to find some time to just reconnect with nature…doing nothing, just relaxing.  That’s why I want to go somewhere I’ve never been to before.  To be surprised.  To be mesmerized.  To be refreshed.

It’s already April, so I better search for some place to visit fast!  Wish me luck!  Or better yet, if you know of a great place to visit that’s not too far from Metro Manila, feel free to mention it under the comment section below, so others will benefit too!

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One day, while reading through the Entreprenuer’s forum, I learned that someone is holding cashflow 101 games at AIM Makati City.  Even though the price is quite expensive (at that time) at PhP 800 for a 4-hr workshop, I grabbed the opportunity right away.  I enjoyed the game so much I played again (and paid another PhP 800).  It was a real learning experience, realizing that there’s a different world of money out there I’ve never recognized before.

When I went to the US a year after, buying a Cashflow 101 board game for myself was one of my main goals.  So when I got back from my 6-month stint in the US, I didn’t hesitate to buy the game and bring it home with me to the Philippines.  I immediately played the game with my family and friends.  Everytime I play, I learn something new —  how to analyze a deal, how the cash flows for every event that happens in your life, etc.  The most important realization I got was recognizing my own attitude about money.  Am I generally conservative?  Or agressive? Am I the type who goes into debt and takes advantage of the power of leverage? Or am I contented just watching other players enjoying making deals left and right while I am still afraid to take advantage of the small deals even though it is only play money.

It’s been months since the last time I played Cashflow 101 game. While playing the game this time around, there were many real-life lessons that came flashing through my mind that I wanted to share with you.

Here are the top 10 real-life tips I’ve re-learned while playing Cashflow 101 again.

1) Having a High Income Does Not Mean You Are Wealthy

One of the players had a profession of a doctor.  He had a hard time getting out of the rat race because of the high expense.  He had to be really be creative and financially savvy to generate a lot of cashflow to cover the high expense.  Contrary to popular belief, high income doesn’t necessarily mean you are wealthy.  Even with your high income, a high expense will leave you little cashflow (aka Paycheck) at the end of the month. Unless you turn that casfhlow into income producing assets, you will have a hard time getting out of the rat race.   What does it mean?  You need to manage your expenses and be creative if you want to achieve financial freedom.  You cannot rely only with your high income.

2) Being Creative Is More Important Than Being Knowledgable

In real-life, what you know is only potential asset unless you apply it.  And the only way to apply what you know is by being creative in using the knowledge that you have to find solutions to other people’s problems.  Getting into good debts to buy a real-estate property can be a good strategy, provided you know how to manage that property so it gives you extra cash at the end of the month.  For that to work, you need to understand your market, your cash flow and equip yourself with the necessary financial intelligence to make the deal work.  Good deals are everywhere.  However, those with creative minds have an easier time recognizing those deals because they invested the time to learn to spot those deals.  To be creative, you need time and effort.  Time to feed your mind data to recognize good deals from bad, and effort to battle through the emotional learning to make it work.

3)  You Can Be An Ordinary Teacher and Beat A Doctor From Getting Out of the Rat Race.

Sometimes, having a lower income can be an advantage, provided you also have lower expenses.  And because you have lower expenses, the less passive income you need to generate to get out of the rat race.  In real life, this is easier said than done.  One because, sometimes, even with the low income, the expenses are even higher.  You end up borrowing money from other people just to pay for the food you eat.  Other times, you are discouraged with living each day from paycheck to paycheck.  If you play the cashflow 101 boardgame, realizing this important lesson will give you hope.  If only you know how to manage what you have, you have the power to get out the rat race sooner than you think.

4) Be Careful What You Focus On

What you focus on expands.  If you focus on problems, you will see problems.  If you focus on opportunities, you will see opportunitites.  In playing Cashflow 101 board game, there’s a trap that a lot of beginners frequently fall into — i.e. focusing on your paycheck.   When you receive your paycheck, you glee in delight as you bring your token over the yellow cell.  As you accumulate more and more money, however, you begin to hunger for more opportunities instead, to the point where you no longer want to fall into a yellow cell (paycheck)…You now want to land on an opportunity everytime! When this happens, celebrate because you have just started to shift one of your core money habits. You are now focusing on opportunities and going beyong just receiving a monthly paycheck.  You are no longer a slave of the 15th or 30th days of the month.  Now, you are looking for small deals and big deals so you can build those assets that produces income.  Keep it up and soon financial freedom will be yours.

5) Every Event In Your Life Impacts Your Cash Flow

Lose your job.  Have a baby.  Go on a shopping spree.  Buy an opportunity.  Donate to charities.  They all impact your cash flow.  They either add in to your expenses, or to your income.   However, they don’t have to stop you from building your asset and minimizing your liabilities.  You still have the power to determine how it impacts you.  At the start, I pulled up a doodad card where I had to pay more than what I have in savings.  I had to borrow money from the bank just to pay for the “vacation”.  When you get in this situation during a game, it’s a bit discouraging because you don’t have any money left and you don’t have anything to invest.  You have to wait for your next paycheck to get back into the game.  The reality is that a lot of people live this kind of lifestyle in real-life but they don’t have a clue that one false move (a.k.a. losing your job) can lead them into financial disaster.

6) The More You Play The Game of Money, The More You Recognize Opportunities Around You

I’ve played the game many times, and because I’ve read and re-read the cards on deck, I know what small deals and big deal opportunity cards are out there.  I know what’s possible in terms of market going frenzy over houses, stocks or businesses.  I do believe the same applies to real-life.  The more you learn about what’s possible, the more you are able to expand your consciousness and focus on those opportunities.  By taking advantage of those opportunities, you give your self a chance to gain your own financial freedom.

7) Take Action and Take Advantage of Opportunities 

Watching others make a move doesn’t do you any good.  Take action.  No matter how small.  Each baby step is a giant leap to your dreams.  You never know when the next wave is going to hit and carry you to your goals.  I’ve played the game since 2005, and yet I am still learning.  The only reason I learned what I know is by taking advantage of the opportunities that life gives me.  I don’t always make money, sometimes I even lose some.  But the more I go through all those experience, the more I gain the confidence to move forward.

Luck Favors the Prepared Mind 

Opportunities are flashing before your eyes every second of every day.  You only need to train your mind to see those opportunites.  The reality is that it takes time to build your mindset to see those opportunities.  It took me years to finally see that earning money aside from your job is indeed possible.  But without the constant exposure to financial lessons, I doubt if I even had the courage to start the Rich Money Habits blog.

9)  Money Attracts Its Own Kind

Even the smallest passive income can turn into big amount if you put your heart and soul into it.  In reality, there’s only one asset you actually have – YOU.  You are the asset.  You determine whether something becomes an asset or a liability.  A perfectly viable business like Mang Inasal can be profitable if the owner knows how to turn it into an asset.  If the same asset is transferred to someone who doesn’t know how to manage a food business, and doesn’t have an inkling of an experience running a business even as small as a food cart, the same asset can turn into a liability.

10) YOU are the asset

Even the smallest passive income can turn into big amount if you put your heart and soul into it.  In reality, there’s only one asset you actuall have – YOU.  You are the asset.  You determine whether something becomes an asset or a liability.  A liability can turn into an asset, and vice-versa.  A perfectly viable business like Mang Inasal can be profitable if the owner like Edgar Siap knows how to turn it into an asset.  If the same asset is transferred to someone else who doesn’t know how to manage a food business, and doesn’t have an inkling of an experience running a business even as small as a food cart, the same asset can turn into a liability.

Keep on dreaming. Keep on learning. Keep on Believing.

Cheers!

Allan

P.S. If you’re searching for ways to practice what you learned in Cashflow 101 in real-life, CLICK HERE to email me.

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Google Adsense

Last week, I was able to finally claim my very first $100 Google Adsense earnings.   That’s after 1 year and 5 months.  The $100 minimum threshold was actually reached by the end of January but Google takes another month to compile everything to have the necessary payment issued.  Here’s a picture of the payment.

While trying find the yellow receive money form of Western Union, I was surprised at first because the form was a bit different that what I expected.  It’s now smaller than what it was previously.  I filled-up the new form anyway and gave it to the Western Union agent.  In less than 3 minutes, my money was handed out to me in cash.  Hassle free.  Of course, I had to bring two IDs (my driver’s license and employee ID) for identification purposes as well as print out the payment details in my Google Adsense admin page but that’s pretty much it.

Why am I sharing this to you?  Simple.  It took me 1 year and 5 months to earn $100.  Hardly exciting.  But when you think about it, this is purely passive income.  I didn’t have to create or ship any product, hire employees or even actually sell anything.  All I did is copy-and-paste an html code provided by Google upon signing-up for FREE to automatically generate Google ads.  Whenever someone “clicks” on those ads, I get an income paid by the advertisers of those ads. Google tracks and manages every part of the process.  All I do is copy-and-paste the code once and forget about it.  After reaching the threshold, I received the $100.60 amount from Google. It’s a relatively small amount, but being able to earn it passively is mind bloggling.

How it all started…

A few years ago while still working as an Overseas Filipino Worker (OFW) in Malaysia, I started writing about my thoughts on money and investing and published them here at Rich Money Habits (you can check out my old articles at the archives section).  In March 2009, I got interested in the potential of making money online and tried putting Google adsense ads into this site.  After 8 months, my Google adsense earned me a whopping total of $1.08. 

For some this was a very very small amount.  And it is!  That’s just enough to buy a small burger.  But one thing that got stuck in my mind from earning that small amount is the realization that I can actually earn money online — it is indeed possible!  That helped inspire me to try to learn about how to do it more effectively.

I really didn’t know much about Internet Marketing then, so when I found out from attending Bo Sanchez’ Financial Coaching Seminar that Jomar Hilario is offering an Online Internet Marketing Mentoring program, I grabbed the opportunity right away.  From Jomar’s Online Mentoring program, I learned that you can display the Google ads in a certain way to maximize your Google earnings.  I did apply some of it and noticed my Google earnings start to grow.  It really suprised me because after a month of applying those lessons, I now earned $6.10! Still not that huge, but it is now more than 5 times what I earned in 8 months figuring it out by myself.

This could have been higher if I bombarded this blog with Google adsense to the point where you cannot read the articles anymore, but as I mentioned in one of my previous articles, I decided early on that Google ads will not be the main focus of this blog.  For as good as the “passive income”sounds, there are still some things that are worth more — that is helping you read through the articles without disctractions, so you can focus and absorb the money and investing tips better.

Rich Money Habits Guide Ebook

Last February 17, I launched my very first ebook guide Rich Money Habits – 8 Ways To Shift Your Money Habits and Be Rich.  Because it was my first time to publish a paid product, I didn’t know what to expect.

What if no one buys?  Am I asking for too much?  What will other people say?  I had all these fears and the more I thought about it, the more I realized that these ideas are only in my mind…they reflected my own internal struggles that I had to battle through.  I had to refocus my attention away from my own fears.

There was only one question I had to answer — “will this help other people?”  My short answer was a definite YES!  And because I created the product from beginning to end and applied the same ideas myself, I know how valuable it is.  But I still didn’t trust myself enough.  I had to go and ask other people, specifically those who have read the same information through my newsletter…and the feedback was overwhelmingly positive.  It was enough to give me the courage to actually launch the ebook.

Launching the ebook was my own little experiment.  And it’s aligned with one of my goals this year to earn $100 monthly income passively from at least 3 income streams.  I wanted to share with you the results (so far) not to brag, because there’s nothing to brag about, but to help inspire you to take your own journey as well.  Here it is.

Total guides sold: 15

Total sales: $118.38 USD

Affiliate share: $8.97 USD

I am not a best-selling author and I don’t claim to be one.  I am just like you, an ordinary person still working full time as an employee looking for ways to bring value to other people and earn income without having to spend so much of my time…because in reality the bulk of my time is still being consumed by my full-time job.

5 Surprising Things I Learned from Launching My Ebook

1) Comparing Ebook Earnings vs Google Adsense Earnings.  The $100 amount was reached in just a week after it was launched.  For a moment, I realized the same result ($100) was achieved a lot faster compared to Google adsense!  1 week vs 1 year and 4 months!  It’s hardly a comparison.  Of course, Google adsense pays only in cents while the ebook is priced at $9.95 initially.

2) The value of launch.  As expected, the bulk of the sales (80%) was made on the launch day itself and continuing on to the next day.  After that, the sales began to taper off in the next few days.  Now, it’s 1 guide sold every other day.  Which is not disappointing considering that this is now purely passive income.  I don’t have to do anything anymore.  Everything is being taken cared of by e-junkie, my shopping cart provider.

3) Being true to your customers. One buyer sent me an email asking when will the book delivered.  After receiving the email, I was surprised.  Suffice it to say, I didn’t expect it and was confused at first.  One, because I was selling an ebook, not a hard copy version.  And two, because I was totally clueless that the book description was misleading people.  I checked my site again and realized that there’s actually no specific mention that the guide is sold as electronic copy only (i.e. ebook) and there’s no paper-based actual hard copy to be delivered.  After calling the buyer, I figured out the miscommunication right away and promised to fix the problem.  Unfortunately, I couldn’t ship a hard copy book to the buyer so I decided to do the next best thing.  First, I decided to refund the payment immediately.  Also, I gave away the ebook, including the bonuses to the buyer for FREE to help compensate for the inconvenience.  Last and more importantly, I had to go and modify the description of the Rich Money Habits package to say that the buyer will get an ebook, not an actual hard copy paper-based book to prevent other people from facing the same problem.

4) Facing your fears by taking action.  One surprising thing I learned from the whole experience is that — “your fears are not as scary as you might think.”  My fears didn’t materialize.  Someone actually bought my ebook.  That alone gave me the confidence to think that this could actually work.

5) All the support that you need is nearer than you think. Some of my friends were delighted when they learned that Bo Sanchez wrote the Foreword to my ebook.  The reality is that Bo Sanchez wasn’t even paid to write the Foreword.  And I didn’t even have to meet him in person to make the request.  One night, while thinking who should write the Foreword for my ebook, I asked myself this question — “if there’s one person in this world that you look up to and would like to write the foreword to your ebook, who would it be”.  There’s only one person that came into my mind — Bo Sanchez.   I learned a lot from Bo Sanchez so to have him write the Foreword would really be the greatest thing in the world for me — a seemingly impossible dream at that time.  I hesitated because I felt my own insecurities cropping through my mind.  Thoughts like “who am I that Bo Sanchez would take the time to write to foreword of this ebook?”was making my own personal doubts stronger.  But I started writing the email anyway…and at the last second, I closed my eyes and took a leap of faith by clicking the send button.  The next day at 9AM in the morning, I got the surprise of my life.  Not only did Bo Sanchez read and replied to my email — he even wrote the Foreword and included it in his email reply right away, no questions asked!  Wow!  To say I was happy is an understatement.  I was wearing a very wide smile the whole day! 

Throughout this journey of trying to learn to earn income through the internet, I’ve met a lot of interesting people and learned a lot along the way.  But my journey is only just beginning.  I am still a long way from financial freedom…but I’d like to think I am inching towards my goal each and every day.  My wish is that this article help inspire you in your own financial journey.

Cheers to your financial success!

http://www.richmoneyhabits.com

WARNING: There’s a time-sensitive early-bird bonus for the first 10
who buy the ebook.  Special introductory price is only available in
the next 72 hours.

To your success!
Allan

P.S. If for any reason, you are unable to access the link above,
you can go directly to the following link:

http://www.richmoneyhabits.com/rich-money-habits-8-ways-to-shift-your-money-habits-and-be-rich/

As mentioned in my last article, we now have an official launch date and time:

** Thursday, February 17th at 7:00 PM Philippine Standard Time **

As I write this, it is just a little less than 24 hours away.

It has been a long road, and I still have a few details to share with you, but it’s going to be a huge relief to get this launched and get it into my readers hands.
In the mean time, you can watch this countdown page as we get closer to launch –

http://www.richmoneyhabits.com

It will automatically redirect you to the order page once we start taking orders.
Also, if you missed the last couple of articles where I gave a little bit of background on what this project is all about, you can read them here

• What’s Brewing @ Rich Money Habits

• Your Valentine’s Day Gift – Get A Chance To Win 10 of the Best Business and Personal Finance Books Of All Time!

In case you missed it, there are two important things mentioned in my last update:
1) Reserve your copy now to get in the priority list to get huge bonuses and discounts.

One thing I haven’t mentioned in my last update is that there’s a special bonus discount EXCLUSIVE only to those who reserved their copy.  It will NOT be available to everyone else.  After my last update, the response from our readers have been overwhelming and a lot of them have have reserved their copy already.  Don’t miss out on this golden opportunity.  By the way, did I already mention that there’s a very very special surprise BONUS for the first 10 who will be buying the Rich Money Habits ebook guide?

2) Become an affiliate to earn 50% commission!

Get the chance to earn 50% affiliate income for referring this incredible resource to your friends! Signing-up as an affiliate automatically qualifies you to join the Rich Money Habits Guide Contest where the first 10 affiliates who are able to successfully refer a sale will receive one of the 10 best-selling business and personal finance books below delivered to their doorstep free-of-charge.

10 of the Best Business and Personal Finance Books of All Time

Straight From My Own Collection

To Be Given Away!

* All books above are actual hard copy version (6 HARDBOUND, 4 PAPERBACK) from my own book collection

Lastly, I wanted to give you a chance to get a sneak preview of the Rich Money Habits Guide.  Click the link below to checkout what makes this book really really special.

http://www.richmoneyhabits.com/sneakpreview

If you’re an affiliate, feel free to forward or share the sneak preview of the Rich Money Habits guide to your friends and contacts.

That’s all for now.  I am so excited I am hardly getting any decent sleep the past few days!

Let’s get it on!

Cheers!

Allan

P.S.  What are you waiting for? Reserve your copy to get HUGE discounts and/or sign-up as an affiliate now, promote the Rich Money Habits guide to your friends and get a chance to win one of the 10 Best Selling Business and Personal Finance Books of All Time!