10. Active Income 80% to fund your needs and living expenses 20% to build your wealth Passive Income To further build your wealth and Fund your wants 80 / 20 Rule How do we create wealth?

11. Active Income Keep what you earn!! How do we create wealth? Passive Income Do more with what you keep!!

14. 18,000 LIVING EXPENSES 1,000 Eskwelahan 2,000 Allowance "Baon ng mga bata" 500 Tubig 1,500 Kuryente 2,985 Net Income 1,500 Cellphone 32,915 TOTAL MONTHLY EXPENSES 1,500 Pamasahe 8,915 OTHER CASH PAYMENTS 1,000 Gastos sa bahay (ex. Gasul, etc) 1,880 Pension Plans 0 Renta sa bahay 2,000 Other personal debts 9,000 Food Pamalengke at Groceries 1,660 Credit Cards Less: 3,375 House Amortization 0 Other Income (Lupa) 6,000 OPTIONAL EXPENSES 300 Interest Income 1,000 Biglaan gastos (Gifts, etc) PASSIVE: SECONDARY 1,000 Babasahin 5,600 Additional: (sidelines) 2,000 - clothes/personal (etc) 30,000 Primary: Sahod 2,000 - movies/pasyal ACTIVE: R & R (Optional Expenses) 35,900 Gross Monthly Income PERSONAL INCOME STATEMENT

17. Obstacle Inflation Procrastination Solution Obstacles to Financial Freedom

19. Jack & Jill Jack @ age 18 started to save P500 / mo. Or P6,000/yr @ age 26 he stopped saving Saved P48,000 only in 8 years Jill @ age 26 started to save P500 / mo. Or P6,000/yr @ age 65 she stopped saving Saved P240,000 in 40 years At Age 65, who has more money?

20. Jack & Jill Jack @ age 18 started to save P500 / mo. Or P6,000/yr @ age 26 he stopped saving Saved P48,000 only in 8 years FV: P3,245,366 Jill @ age 26 started to save P500 / mo. Or P6,000/yr @ age 65 she stopped saving Saved P240,000 in 40 years FV: P2,775,174 It is not how much you save. It is when. Start Now !!

21. Obstacle Inflation Procrastination Personal Behaviour Solution Obstacles to Financial Freedom

23. Obstacle Inflation Procrastination Personal Behaviour Cultural Issues Solution Obstacles to Financial Freedom

25. Obstacle Inflation Procrastination Personal Behaviour Cultural Issues Taxes Solution Obstacles to Financial Freedom

26. Obstacle Taxes Solution Know the tax implications of every purchase and investment Obstacles to Financial Freedom

28. Value of P1 / day @ 10% per year 5.8 20.9 60.0 161.5

30. Work Smarter Not Harder Working Harder Save P500/mo for 30 yrs. @ 7% interest = P609,985 Save P1,000/mo for 30 yrs. @ 7% interest = P1,291,971 Working Smarter Save P500/mo for 30 yrs. @ 10% interest = P1,130,243 @ 12% interest = P1,747,482 3 x

32. Net Worth Planning Assumptions: You are 35 years old today. You are earning P360,000/yr or P30,000/mo Ave inflation is 5% per year How much should you be earning 30 years from now? Answer: P1,555,899/yr P 129,658/mo

33. If I have to earn P1,555,899 per year 30 years from now, how much earning assets should I have at that time? Answer: @ 7% - P22,227,132 @ 10% - P15,558,990 @ 12% - P12,965,827 Net Worth Planning

34. Target Net Worth P15.5 Million in 30 years P 6,880/mo. @ 10%/yr 1.4 5.2 9.1 15.5 Net Worth Planning

41. Start Your Journey Your first source of capital Pay yourself first Spending means you pay others first.

43. Savings is not enough Be a Passive Entrepreneur

44. Active vs Passive Income Earning P360,000/yr @ 5% increase per year 20% savings earning 10% per year interest rate 19,464,037 24,697 296,362 2,022,623 1,481,809 30 17,364,195 23,521 282,249 1,803,481 1,411,246 29 15,475,529 22,401 268,809 1,606,416 1,344,044 28 13,777,446 21,334 256,008 1,429,275 1,280,042 27 12,251,328 20,318 243,818 1,270,109 1,219,088 26 10,880,353 19,351 232,207 1,127,158 1,161,036 25 5,868,866 15,162 181,940 605,021 909,702 20 2,984,017 11,880 142,555 305,002 712,775 15 1,356,846 9,308 111,696 136,231 558,478 10 151,370 6,300 75,600 11,892 378,000 2 72,000 6,000 72,000 3,770 360,000 1 Total Savings Monthly Savings Annual savings Passive Income Active Income Year

45. Active vs Passive Income

48. Types of Investments Fundamentals of Investing Ownership Investment (LT) Speculative (ST) Lending Investment (ST/MT/LT)

49. Fundamentals of Investing Fundamentals of Investing Risk/Safety Liquidity Rate of Return/Yield Capital Requirement Investor Risk Profile Term of Investment Tax Investment Expertise Timing

51. Financial Intelligence is not about Money It is about mind set

52. Everytime you spend, always ask yourself the question… will it bring me closer to my desired networth?

53. We cannot control the wind But we can certainly adjust our sails

54. “ All we have been talking about are things that money can buy… But in our journey to financial independence, let us not lose sight of those that money cannot buy …