Get Rich, Slowly!

Mondays Mean a Reassessment

2011-02-07T18:29:00.000-08:00

It's that time of the week where the world thinks the reset button has just been pressed. I should do the same thing and take time to put stuff here about what's happening with my life.

Coming soon to a store near you.

So last Sunday, I started my own mini business! Hooray to me!

The business was inspired by one of my mentors (he's British) telling me once that the best products to sell are the small ones because they're cheap to ship and they're easy to store.

He was referring to Lego, which is, in Britain, apparently a well sought out commodity. British moms go distraught finding specific pieces for their kids. There's also a niche community of Lego collectors in Europe.

I didn't go the Lego route because, hey, Manila ain't Britain, for one, and I never really had a passion for Lego.

But I'm not going to say what my product is here. :) I am going to tell you more about the experience of buying a whole box of this product though... after the jump!

This is the first time I actually set out to buy something not for consumption. It was a weird, totally new sensation for me.

Which was funny, because if this was for ME, I'd have bought it without hesitation. Buying it with the purpose of investing in the product though is apparently a totally different affair.

I wanted to do it right the first time. So I think I got the basics covered:

Find a wholesale seller and get products at wholesale prices.
Make sure that the product caters to a niche market.
Take inventory of the products, and figure out the prices.

My next step is plotting out a road map of a plan on how I launch the product to my niche market. That, and figuring out logistics.

This is totally experimental so I'm not sure what will happen. If I sell all of it I stand to gain 2x my initial investment. Let's see.

If you're interested at just how robust selling Lego is though, click here.

First Steps: Avoid these 5 Places Designed to Make Your Wallet Weep

2011-02-04T19:05:00.000-08:00

Every Saturday is the First Steps section. These are initial attempts at not ending up spending 5,000 pesos on a bill, for anything.

And It's the Weekend! You made it! Good job!

Weekends are a good excuse to think of yourself as a poor overworked employee and end up spending way too much on something.

I usually end up spending way too much on alcohol.

Last week, I started an experiment.

Instead of going out for a good long bout of reckless partying, I stayed in over the weekend.

The result? Lookie here. My bank account (the other one I frequently use) is still relatively full and it's almost payday again (in five days).

That rarely happens.

The outside world is full of tempting little treats that target you, yes you, to bring out that wallet and credit card and feel the rush of sweet intoxicating purchase. These days, even staying home isn't safe (with online shopping and all).

Here are my top 5 places I've grown accustomed not going to:

1. The Mall (Place of Evil)
Shopping loci for us who are weak at the power of product placement and snazzy window displays. Avoid at all cost. If you must shop, get someone else to buy what you need for you. If you're alone, buy it online.

If ever you do end up in the mall, hopefully you didn't bring your entire life savings with you.

Let's roleplay a scenario in case you're unconvinced. Imagine strolling around SM because, oh, you have nothing to do. Your wallet has 1,500 in it and you're strolling around the home section.

When BAM. You see this kiosk with an LCD TV showing two ecstatic hosts marvelling at some product they have in their hands.

You approach the kiosk and you're greeted by a ma'amsir where someone with a microphone is spilling all sorts of disgusting liquid on the floor. You watch the demo and you're just flummoxed (means perplexed, or naloka) at how CLEAN the floor is after it's wiped by the wondermop.

Five minutes later you're carrying a wonder mop. With extra mopheads. And free cleaning soap (in two scents). You buy it because it's just miraculous and you get rewards points anyway.

2. Your favorite club
I know, I know. You worked your ass off. You "deserve" to get wasted with pretty half naked boys prancing around you and kissing you accidentally and stuff (fine, and girls). But if you don't have the talent of saying no to additional glasses of alcohol, AVOID.

3. The Grocery, on an empty stomach
Disaster. My last grocery, I foolishly forgot to eat before going to the grocery. I had my list of things to buy so I figure it wouldn't get bad.

As you can imagine, I ended up buying all sorts of stuff. Chocolates, junk food, this fancy ass loaf of bread (which is now in the trash because no one ate it), and a big-ass bottle of applesauce among other things. I remember at one point I wanted to buy three different kinds of salad dressing.

Eat before you do groceries.

4. If you have a credit card, online sites (like eBay, or Beeconomic).
You know why sites advertise that they have low prices for anything? It's to get you thinking that you win when in fact any purchase is considered a loss really.

It's so hard though. A couple of days ago I ended up innocently searching for Marc Jacobs in ebay (yeah I like MJ) and encountered a Paul Smith carryall for men that was eventually sold at 1,300 php.

Luckily I still don't have a credit card these days. Otherwise I'd have bought a lot of stuff already.

5. [BOYFRIEND'S SUGGESTION] Gadget Stores/Accessory Stores
Well, I'd have to agree. Those babies cost a lot. And the new models never stop, making you feel like a big loser for owning something as ancient as a phone that isn't 5G+.

So there you go. I'll add in a bonus place by the way.

BONUS: Makati Cinema Square

I've travelled to many places but there ain't no place that makes me want to spend it all other than MCS.

The DVD's, the weird shit, pre-owned stuff, toys, and more DVD's.

...

Entire box sets of Sex and the City maybe.

Review: Entrepreneur Philippines Jan-Feb 2011 Issue

2011-02-01T20:19:00.000-08:00

Every wednesday, I attempt to review literature such as magazines and books, or articles from the Harvard Business review. Yes. Every wednesday I shall attempt to do this.

I was waiting patiently for my morning bagels from Yellow Cab to finish. Having smoked a cigarette already I ambled over to their magazine rack and found this magazine.

So because I have started this blog about money, this particular title caught my attention. I couldn't help but wonder what sort of content it had inside. I scanned through it and decided that I liked it.

In fact, it held such promise to me that I left Yellow Cab, went into Mercury Drug and bought my own copy.

(After that I went back to Yellow Cab and my bagels still weren't finished.)

Okay so here's the part I review it from the point of view of just a regular well-read, well-travelled guy.

The Good
1. This magazine is probably one of the few to really dive into the whole history of Mang Inasal (I don't expect a book to come out about that topic).

So Mang Inasal is a company I've noticed pop up everywhere here in Manila. It's almost everwhere where a McDonald's is, or a Jollibee branch is. You probably knew this, but Jollibee went on to acquire for 3 Billion Pesos. The story from the humble beginnings of Mang Inasal to something that Jollibee would actually covet is told here. Love this.

2. The Business Start Up Guide
A guide! That has seven steps to making a business plan! Tailor suited for the Filipino citizen! Six pages of it with 11 size font/type!

The Not so Good (for Me)
3. Restaurant Special
The magazine featured some probably famous chefs in its article "Hail to the Chef."

It featured Sau del Rosario for Le Bistro (he is just so cute), Giney Villar, Him Uy de Baron, and Reagan Tan.

I don't know about you but I'd like to have more details on how painstakingly the chefs grew their restaurants as a business (aside from their whole life histories). Oh I don't know, some stats in there or something.

The restaurant special also meant listing all the schools one can enroll in to launch a career in the restaurant industry. Nice. I understand the value this has. However, it would have been so much more wonderful if there was a rating system that the magazine put on it. Or pros and cons. Or a review of each. Or the pricing of the lessons/courses.

4. Article entitled Opportunities in Tourism and Wellness
Just because I came from the travel industry, AND just because I spearheaded several studies for the travel agency arm of a big-ass airline meant that I have a lot of knowledge in the industry.

This article just didn't go into detail deep enough. This is probably because it only had one page devoted to it.

If you want me to elaborate, the article can be best summed up like this.

Tourism is big in the Philippines

Festival Economics
Ecotourism
Medical Tourism
Retiree Vacations

If I had a billion this wouldn't really convince me to go jump into the tourism industry.

What could make it better? I'll just zoom in on med tourism okay?

Well, medical tourism is basically becoming more famous in countries like Thailand (cosmetic surgery) and Brazil. It's because of the quality of healthcare, the price they charge, and the lower cost of living. In countries like Dubai, they zoned this whole area to make a Dubai Healthcare City because they wanted to go into this niche.

To discuss topics on this ultra macro scale is useful, if you happen to be a king or a president. Starting entrepreneurs? Not so much.

Other Thoughts

Hoo boy! There sure are a lot of "franchising opportunities" out there.
From those "franchising opportunities," hoo boy there's a lot of siomai centered opportunities out there!
I like the layout of this magazine. For each article, they have a color coded square "tag" on it.
Did you know there's a "party bus" here in Manila? Yes. So the party doesn't stop when you barhop because your ride is a big bus with what looks like a dancing pole! (I just showed it to boyfriend. He says he wants a party in one. 28,000php for 10 people). Hnh. Oh wait. there's unlimited booze...
You should try yellow cab's morning bagels. Wow. We ate the one with bacon and egg and split the one that had sun dried tomatoes in it. It just takes so long for them to make anything though.

Eek! There's another Blog with the Same Name!

2011-01-31T18:52:00.000-08:00

Ingrid wanted to tackle her and beat
her bloody with her heels

I had signed up to a site aggregator and was browsing through their top 100 list when I came across another blog that caught my eye.

It caught my eye because it has the same name as my blog.

Oh. And it's won awards and stuff too. :(

What to do, what to do?!

Shall I
1. Change the name of my blog?
2. Make the S in Slowly a $ sign?
3. Tagalize the name of my blog? (O Pera Nasaan Ka! or something to that effect)

Suggestions?

This is the other blog with the same name.

First Steps: Two Bank Accounts

2011-01-30T17:23:00.000-08:00

This post gives all sorts of reasons why having two bank accounts is the correct first step to a richer you!

The first thing I've done (and so far I'm still in this step) is open two bank accounts.

Why?

Well, human beings are habit-driven creatures. And if you're like me, I have a habit of exhausting my bank account on the basis of the amount of money it has in it.

Two bank accounts have its merits.

You can continue your habit of abusing one while leaving the other one untouched.

My boyfriend had the insight of asking the bank to not give him an ATM card for his bank account. That could be a good way of you not ever touching that bank account.

The next step is simple. Keep on dumping money on that other bank account until you have, oh I don't know, say 50,000.

For me, I have the bank account my company uses for putting my salary in (Chinabank), and the second one is the bank that gives good interest plus has a branch in the same building I work for (BDO).

So far, it has worked. I actually have savings now.

If only these self-destructive thoughts of immediately buying something with whatever money I've ended up with could stop though...

Not convinced? Here are some links to extra literature.

Invest In Your Passions

2011-01-30T15:29:00.000-08:00

Ingrid gave up a successful career in banking
to pursue her passion in nude wrestling.

I've lost count how many people have given me this advice. Equally, I've lost count how many articles I've come across that preach this fact.

I suppose it's all about sustainability. Not of resources, but of your interest and your motivations.

How often have you gone into a venture with a lot of energy in the beginning only to fizzle out a few months later?

After the jump I talk about my passions, fears, and a little video of Warren Buffet's son who got the advice from his dad to invest in what he loved in.

Learn from those Successful People

First, let's see what successful people have to say about this. This is for you as much as it is for me really. ;)

My Daddy the Billionaire

Before all that bankruptcy thing ruined his company, my Dad was all for pursuing what he loved most: food.

Food was really the closest my dad felt he could get to divinity.

He came from a poor family. So poor that at one point, he had to sell off all their family furniture on the streets just so they could eat. So poor that he had to walk to school (which, I was told, was probably 10 kilometers away from where they lived). During winters, he had to ski to work. He'd be freezing to death, of course).

But he did love food.

So at one point, he got some money and decided to set up a business in the city. A tiny hole-in-the-wall restaurant.

He didn't have culinary skills, but he loved cooking. He was the cook, the waiter, the owner. And he worked his ass off.

Years later the small restaurant gained popularity and he decided to have faith in it and put more money into it.

To make the long story short, the restaurant grew to a level where it was considered as the finest restaurant in that city, arguably the country (the Royal family started eating there, and so did the founder of Sony).

It grew from a humble restaurant, to a chain of restaurants, to a supplier of off-the-shelf food products for grocery stores.

Success through passion.

Oh, and don't worry about the bankruptcy. He's retired and likes to lounge about in his underwear trading stocks online in his comfortable 3-bedroom flat.

My Passions

I'd love to develop a new passion for real estate, gold, and the stock market, knowing that these are really the most prudent methods of income generation. But I don't. Instead, I have passions that I fear may not really be totally lucrative.

1. Travel.
I have no idea how to monetize this passion. I really don't. But I've pursued this passion. I work for the travel industry and I've spent tons of cash travelling around. Transforming this into a source of income? Not sure how.

2. Magic the Gathering cards
When I was in high school, I came across this wonderful card game that was totally addicting. I played and played and spent tons of money to buy more and more cards. I've stopped playing, but if there's ever something I'd be totally interested in selling in, this would be it.

3. Food.
It worked for my father. My boyfriend has a restaurant. I could very well go into this. I just... don't know where to begin.

4. Anything targeting the gay community
Like, oh I don't know, a bar. Or a book. Or, let's be honest here, even pornography.

A Million. Gone.

2011-01-30T14:09:00.000-08:00

I spent all of it. Hooray to me.

Now, as I sit here and try to put more content in this new blog, I wonder where it all went.

How often does THAT happen? You have some cash, you're richer than you ever were. So you go on an insane spending spree thinking you have enough left. One year later you wonder where it all went.

So in hopes of trying to prevent past mistakes, I'll try to enumerate what I've been busy spending for the past few years.

Short Term vs. Long Term Happiness: A Big Struggle

I never had that much money, and was never a lottery winner, but I have had a modest amount of money at some point. But then I spent a LOT on travel, food, and clothes.

This is actually a major conflict in my life. On one hand it's all about living a happy hedonistic life. And on the other, scrimping around so much that I try to deprive myself of everything that's shiny and pretty.

I grew up with a really spendthrift mother. I also grew up a really greedy kid. I saw all these beautiful shiny expensive toys and couldn't wait to own them.

You can imagine the suppression I had to do to these greedy feelings so that I can synthesize some form of contentment.

You can also probably imagine that, at some point, when I end up with huge amounts of cash, I look at it like an opportunity to spend all of it on all the things I wanted to have, but could never afford. And spend I did.

This happened far too frequently the past few years by the way. But this 2011 I say nay! Enough!

And what was my solution? Oversaturation. And a lot of thinking while I was saturating myself.

Now that I'm older, though, I'd like to think that I've saturated myself of all those worldly pleasures.

TRAVEL - I still would like to travel but after a three year vacation fest I feel that going to other countries could be a long term goal for me instead of planning a vacation every half of the year.
FASHION - I still like expensive clothes. I do. But after having done a pull-out-all-stops shopping sprees, I feel like I can pass up opportunities to do this again in the next five years.
TECH - This is the most difficult one to pass up. Seriously. How many gadgets pop up in the course of a year? I don't think I've burnt myself out of buying this.

Painfully Transitioning from Consumerist-Me to Anti-Consumerist Me

Oh the pain. But I'll survive.

I mean, take this thing I've been drooling after for example:

lifted from pinoytechblog.com

I want this. I really want this.

But thankfully I'm no longer the same person that I was three years ago (I did have an iPhone three years ago by the way which I lost to an unfortunately roller coaster accident).

My current phone is the one I bought off ebay.ph which was pre-owned.

*sigh* It doesn't make me stop drooling over anything Apple though.

That's my point. This division between the needs and the wants is easy to do. That's the logical side of it. The emotional side though, *sigh,* is harder to rein in.

It doesn't help that all ads target your emotions. Taking the same example, how could I *not* respond emotionally to this?!

Thankfully, saying "no" gets easier with practice. After I've gotten really familiar with the emotion of unfulfilled unbridled yearning, it gets easier to not end up with your WANT list. It doesn't stop me from drooling, but I am comfortable with just that: drooling.

Weighing Options for A Richer Me (and You)

2011-01-30T11:07:00.000-08:00

I'm assuming I'm like you. Or conversely, you're like me. Otherwise you wouldn't be in this blog of mine wouldn't you?

Let me clarify?
1. You want to have lots of money.
2. You don't have a lot of money.

Let's define what I mean when I say "lots." Lots meaning 1 million. So do you have a million pesos? I don't. Do you want one? Yes? Yes. Let's say it together. YES.

Before I go on in officially writing HOW in this blog, I'm going to weigh my options.

Get Rich by Saving
Definitely the easiest route to 1M is doing this. Provided you have a job or a small business (which I hope you do), slowly becoming that millionaire starts by painstakingly (and slowly) stocking up.

Assuming you get money regularly, and assuming that after eating, rent, utilities, and bills, you have extra cash.

Slow, yes, but not impossible. Simple math leads to a richer you. The problem is, of course, the patience.

And here's my own personal challenge: patience. I am a young, male, coffee-addict with a taste for expensive things and easily distracted by shiny, pretty things. And I suspect I'm more or less like you are.

Am I up for this challenge? Yes. Again, I'm not growing any younger. It's either do this (the easiest) or fail miserably.

Get Rich by Investing
I have no idea what investing is. I have a vague idea it's about those stocks or bonds or whatever it is out there. I can google it, and then read the definition. I understand the words, but haven't really made the jump to relating it to my life.

Are we still on the same page here? You're probably one (or several) pages ahead of me already.

I do acknowledge though that Investing is factually an option towards great richness.

I'm up for this challenge. But I suppose I need actual cash to use for investing first.

I have to confess though. I once had some government bonds which I got 8% from. Shortly after getting the rewards I went on a vacation and spent it all. :/

Get Rich by Investing... in a Business!
Oh this to me is totally different than just plain investing.

This is entrepreneurship. This is providing products and services to the general public to get profits off it.

Anyone can do this I think. But, this requires a lot more effort and time than the other previous two. Also an option I'm willing to take since I have opportunities to do so.

It Took 28 Yrs To Realize I Didn't Have Savings

2011-01-30T08:51:00.000-08:00

I was more or less born of a relatively well-off family, whose fortunes disappeared when a bankruptcy ravaged the family business.

I can say I came out of a good university, thus spurring several good starting jump off points, all of which culminated into employment in a huge company outside the Philippines. Earned a good salary. But because of... an misalignment with what that country had to offer, I left.

I am now in middle management. Earning considerably enough.

But, no savings, no assets, just a lot of... stuff.

My motivation to chronicle what's about to happen in my life is just another way for me to follow through on my one and only goal: To have savings. Lots and lots of savings.