12-Step Guide to Be a 20-Something Millionaire (Free Version)

Retire with MILLIONS & make your money work for you. Ask me how at The Wise Living now.

12-Step Guide

to be a

20-SOMETHING

MILLIONAIRE:

*FREE Version*

The 12-Step Guide to be a 20-SOMETHING

MILLIONAIRE *FULL Version* will be available on

October 2013.

Copyright © 2012-2013 - Lianne Martha M. Laroya

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http://thewiseliving.com/


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My friend, this e-book is written for The Wise Living readers.

If you're not yet a reader, please come and join me!

I post regular articles to help you work on your money,

control your cash, inspire other people and ultimately become

a 20-something millionaire emotionally, financially and

spiritually.

As a budding financial advisor, I give FREE financial

consultations as well. Just go on and drop me a line at

[email protected] for any financial concerns,

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It'll be the perfect read during your vacation!

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mailto:[email protected]



Dedication

To the working student who is trying to juggle his job and his studies at the same

time… You are truly admirable.

To the college student who is extremely afraid for his future because he thinks

that he will be poor for the rest of his life since his family is poor… You,

together with God, can control your life.

To the undergraduate who has low self-esteem because he wasn’t able to finish

his formal education… Don’t you lose hope just yet. A lot of successful

individuals did not even finish college.

To the young adult who has so many dreams (traveling the world, starting a

restaurant, living in a foreign country, having a condo unit personally…) but so

little money to accomplish those dreams… You can get there if you start

owning your life.

Friends, this guide is a living reminder that you will be successful.

Read it.

Laugh at it.

Cry during reading it.

Above all? Live it.

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Table of Contents

Preface.................................................................................6

Introduction……………………...……………………..……..10

Priceless: The Millionaire Mindset...…….……………….....12

One Peso: Barriers to Wealth.............................................16

Five Pesos: Be Responsible For Yourself..........................22

Ten Pesos: Make Saving A Habit.......................................25

Twenty Pesos: Create A Saving & Spending Plan............31

Fifty Pesos: Frugality & Priority

Purchasing..........................................................................37

One Hundred Pesos: Increase Your Cash........................40

Two Hundred Pesos: Protect Yourself & Your Loved

Ones....................................................................................43

Five Hundred Pesos: Get Started With Investing..............46

One Thousand Pesos: Grateful? Give Back.....................50

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Preface

“Bayaan mo na.” (“Let it be.” )

This is what my grandfather, Tatang, used to tell me all the time. My laid-

back, carefree, gentle grandfather was a loving soldier. He loved my grandmother

like she was the only woman to ever exist. He loved cooking and he loved his

children. Most of all, he loved playing the lottery just for kicks – he even had

enough money to share with others and give back to the community.

Needless to say, I loved Tatang.

I loved my grandfather not because he cooked delicious ginataan.

I loved my grandfather not because he would ask me to place his lottery

bets for him and I get to keep the change!

I loved my grandfather not because he would often mistake the titles of the

soap operas but memorize the names of famous basketball players.

There really is no specific reason. I love my grandfather. That’s all there is!

“Bayaan mo na. Okay lang yan.”

Whenever I complained about our rather loud neighbors, he would smile

at me and tell me to let it be. I’d feel okay afterward.

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Whenever I told him about the storyline inconsistencies in the soap operas

we used to watch, he would laugh and tell me to let it be. I’d feel better afterward.

However, when he got his second heart attack and we rushed him to the

hospital…

When he was struggling to consume every last piece of oxygen available

because he couldn’t breathe properly anymore…

When his vital statistics became uglier and uglier…

When his body eventually gave up on him, when the monitor dropped to

zero and when I felt my soul leave my body…

“Di ko kayang pabayaan. Hindi ito okay lang.”

I couldn’t just let it be. It was not okay at all!

Deep down, I was really blaming myself for everything that happened. I’m

a registered nurse, for Pete’s sake! I was supposed to be calm, prepared,

informed; I was supposed to know everything!

I felt like a complete trash: I didn’t have enough knowledge to control the

situation. I also didn’t have enough experience to acknowledge the severity of his

condition.

Do you know what the worst part was? Do you know what was it that I

regretted the most?

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I didn’t have enough money to send him to the nearest hospital!

That’s why for me, Tatang’s death was not okay and it was not fine – I

couldn’t just let it be.

Here I am, trying to open my heart for you, my new friend, to see. Sharing

my feelings has never been my forte. There is just something very risky and

fearful about exposing my vulnerable side to people, may it be my family or my

close friends. The thought of vulnerability used to frighten me to the core.

However, I soon came to find out that the thought of losing a loved one,

just because of a lack of money, is so much worse.

Money is a terrible master: As long as you work for money, you can’t

simply ask for money to appear whenever you desperately need it. I’ve learned

this the hard way.

On the other hand, money is a terrific servant: As long as you let money

work for you, you can control it to appear whenever you want it to.

Hi, I’m Lianne, the founder of TheWiseLiving.com and the author of

this book. I’m here to help you convert your money from being a terrible master

to a terrific servant.

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I hope you join me on this inspiring, rich and empowering journey to

being a 20-something millionaire.

Let's start!

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Introduction

“Money is only a tool. It will take

you wherever you wish, but it will not

replace you as the driver.” – AYN

RAND

This book is written with the

young adult as the market in

mind. Who better to talk to

about your finances than with a

fellow colleague, yes?

This book won’t be a “I’m-better-than-you-sermon” – this is a “I-know-

dude-so-I’m-trying-to-help-you-narrative”. I know what you’re going through

because I’ve been there myself!

Many adages say that the future of the country depends on the hands of

the youth, but seriously, how can we handle the country’s future if we can’t even

save up for our future?

How can we lead the nation if our debts are the one leading us?

How can we be masters of our own soul if money makes us who we are

right now?

We’re clueless when it comes to these things! After graduation, no one told

us that we needed to save a percentage of our income; no one said that we should

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start investing for our retirement; hey, no one even told us to avoid credit cards if

we’re not disciplined enough!

My friends, it’s time to take control of our finances now that we are young.

If you’re already old, that’s cool, too! You’re still young at heart! At least you’re

actually taking some time off to learn about money management, right?

Let us not be slaves to creditors. Let us not pay interest.

Let us take control of our finances because no one else can do it for us.

We have the power, friends. We WILL be able to do it!

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Priceless:

The Millionaire Mindset

“Money isn’t everything but it sure

keeps you in touch with your children”.

— J. PAUL GETTY

Do you want to be a

millionaire? What kind of a

question is this? Of course you

want to be one!

We all know that being a

millionaire is great! With this status, we can buy what we want, where we want,

when we want to. It’s liberating – it is the ultimate definition of financial

freedom! And who wouldn't want that?

YOUR DREAM LIFE

Just think of this scenario for a while:

You wake up and eat your breakfast of organic fruits, newly prepared

pancakes and freshly squeezed orange juice. You take your time because you’re

really not in a hurry to rush for work. You exercise for a while and bond with your

family.

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After these, you prepare for work – although it’s not really work for you

since it seems more like playing as you enjoy what you do. You’re not worried

about money because your passive income is already enough so that you and your

loved ones can live comfortably.

As you read a book, you sip on your favorite brew of coffee as produced by

your coffee machine just because you can. You end the day with a prayer to God.

Life is good. You never have to worry about money again.

Boom! Time to wake up now!

BACK TO REALITY

I have to give it to you straight – being a millionaire is no picnic, though.

Unless you were born with ultra rich relatives who have taught you awesome

habits, then being a millionaire is tough.

Being a millionaire, after all, is more of your attitude than your actual

income. In a nutshell, being a millionaire boils down to your mindset, and

adopting a millionaire mindset is very important.

“YES. I will be a millionaire!”

This is easy to say but hard to do, right?

Let’s start this guide by defining what wealth means to us. I mean, you

can't know how to reach a dream if you can't even specify what your dream is. It's

a basic thing.

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Remember that your definition is very subjective. Just as my definition

of an ideal partner is different from others, my definition of wealth may be

different from yours as well.

Do you value your family? Your friends? Your loved one? Do you value

your relationships? If that is the case, then, you can say that your wealth is

people.

And I agree! My wealth is people, too! I love people and my interaction

with them is always the highlight of my day.

I need money, though. I can't just let my parents have their semi-

annual check-ups with love! I can't say, "Doctor, here is my super love for you.

Would you care assessing my parents so that any medical condition they have

would undergo early detection and prompt treatment?"

I need money. I can't fund my little brother's college education with

love. "Oh, hi principal. Sorry I can't pay with money. I love you so much, though.

Would you care allowing my brother continue his education? Remember, we all

love you!"

I need money. I can't settle down with the person I love with just love!

"Hi, person I love, could you please not take a bath anymore? The water bill is

high. I love you, though. Oh and please don't bother turning on the appliances.

We don't have money to pay them. I love you, though. Let's not eat anymore! Let

us feed on each other's love!"

These are extremes but you get what I mean, right? I consider people I

love as my wealth.

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But money assists me in caring for them to the best of my

abilities.

After defining what your wealth is, create your very own Millionaire

Mindset. I tell myself to repeat this mantra everyday:

“I will become a millionaire because it is my life purpose to care for my

loved ones. It is my mission to let people experience God’s love through

my writings and through my actions. I sincerely desire this so that I can

inspire and help my colleagues into changing their lives for the best.”

I know, this sounds incredibly cheesy right now. Yes, I’m blushing. Laugh

all you want. Email me joking messages and sarcastic replies. Some of you may

even be laughing at me for being so OA (overly attractive). I understand what

you’re thinking – “Like, seriously, is Lianne actually serious?!”

The main point of the Millionaire Mindset is that it should be meaningful

to you. It should be customized according to your life.

Therefore, my mantra is different from yours!

What is your Millionaire Mindset?

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One Peso:

Barriers to Wealth"Too many people spend money they haven't earned, to buy things they don't want, to

impress people they don't like." - WILL SMITH

Now that we already

have our Millionaire

Mindset, we should make it

a point to repeat this to

ourselves every single day.

Don’t do it loudly, though,

unless you want to receive weird

stares from strangers.

Now you might be telling yourself – I’ve been repeating this mantra every

single day! I’m full of positive energy! I can do everything! I’m going to

accomplish this now!

But then you find yourself in the same cycle again.

What’s wrong? Where did all my energy go? Why am I still not doing

anything?

5 COMMON STAGES OF CHANGE

1. Pre-contemplation: “I don’t have a problem with money! I’m doing just

fine! Mind your own business, Lianne!”

During this stage, you’re not yet fully aware of your financial problems.

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Maybe you’ve never thought about managing your finances before or

maybe you’ve already tried once but failed – either way, it’s important for you to

get out of this stage and move on to the next one. Stop denying and start

acknowledging!

2. Contemplation: “Okay, Lianne, I think I do have a money problem. I don’t

know how to solve it, though.”

You’re typically unsure during this stage – you already know that you have

a problem but you don’t really know what to do with it.

Maybe you’re scared of being ridiculed by your “friends” or being stressed

out with your budget – accept those feelings of contemplation! It’s crucial that

you deal with your feelings of hesitation first before committing. Once you’ve

done that, you’re ready for the next stage.

3. Preparation: “I’ve already done research so I think I’m willing to commit to

doing these action plans.”

You’re half-way there, believe me! In this stage, since you’ve already

thought about changing, you go ahead and do some research of your own.

You read books, magazines and blogs; ask experts for advice; and make a

list of substantial action plans that you’re willing to do.

4. Action: “Hey, look at me! I’m actually starting to manage my money! ”

At this point, you might be feeling eager, energized and enthusiastic. Keep

going!

5. Maintenance: “Woah, this being a millionaire thing is hard. But I will keep

on going!”

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Honestly, this stage is going to be difficult. It’s going to be hard. It’s going

to test your self-discipline and motivation. Most of all, it’s going to make you send

me “I don’t like you, Lianne!” emails just because of the hardship that you’re

going to go through.

It is at this point that I would recommend you to go back to your

Millionaire Mindset mantra. Remember the reason you’re doing this.

Are you willing to take on the road to be a 20-something millionaire? Do

you think you have what it takes to make money your slave, and not your master?

Well, you need to deal with these seven barriers to wealth first. These 7

scenarios P-R-E-V-E-N-T you from being a 20-something millionaire!

7 BARRIERS that PREVENT YOU FROM BEING

A 20-SOMETHING MILLIONAIRE

1. P-ROCRASTINATION:

“Oh, I’ll wait until I’m much older to do this. Come on, I’m still young. It’s

not like I’ll need this, right? I have all the time in the world to save up when I’m

in my 40s!”

The Barrier: You’re procrastinating because you have this false security about

your age.

2. R-ECKLESS SPENDING

“OMG. I NEED to buy this dress. I look great in this! My crush would

definitely look at me now! Maybe I’ll include the shoes, too! And this pretty pink

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ribbon! Nice, I still have some money left. Better save it for the time when he

actually asks me out on a date!”

The Barrier: You buy practically everything that you want simply because you

have the money for it.

3. E-RRONEOUS EXPECTATIONS

“I can get rich quickly and easily by joining this program!”

“Dude, it's the government's fault that I'm broke right now. It's a

conspiracy, I tell you! That's why they should provide all my needs.”

The Barrier: Your head is filled with all these false expectations that you simply

can't find the motivation to work on your finances.

4. V-ACUUM PEOPLE

“Don't even bother trying in convince me, Lianne.”

“Why bother? Nothing will work anyway.”

“Oh man, you're so weird for saving up early! You're still young – let's go

shopping instead!”

“Wow, your retirement fund is in the stock market? Loser!”

The Barrier: You know what the word “vacuum” means, right? It's vacant and

it's void – just like vacuum people. Vacuum people are those kind of people who

bombard you with negativity and suck out all your motivation up to the point

when you'll have nothing left.

5. E-FFORTLESS LIVING

“I really really really want to be a millionaire, believe me! I just don't

want to do all the hard work that comes with it. Meh.”

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The Barrier: You've written your Life Dreams – but you're not making any

effort to actually turn them into reality.

6. N-EGATIVE MONEY BELIEFS

“Money is evil.”

“God hates rich people. He doesn't want them to enter Heaven.”

“Hey, if God intended me to be rich, He should have given me a signal.”

The Barrier: Growing up, these money beliefs are deeply ingrained in your

mindset: You think that money is pure evil so you're not really putting any effort

towards achieving financial freedom.

7. T-OTAL FINANCIAL CLUELESSNESS

“I can’t save money because I don’t know what I should do first!”

The Barrier: I know this one: I've met this troublesome barrier before. You

want to budget your take-home income but you don't know where to start first.

You want to invest a part of your income but you don't know which account to

open.

Learning financial wisdom takes up a lot of time as well. Just like how you

can't cram four years of college into one year, you can't just instantly expect

yourself to be a personal finance guru in one month. That will just be crazy!

A lot of people say that “beauty is pain”, right?

I have a similar saying: “If beauty is pain, then knowledge is gain.”

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I'm actually so very proud of you because you’re taking a huge step by

reading this book. Congratulations! (And please don't forget to buy the more

detailed version of this book this coming October 2013!)

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Five Pesos:

Be Responsible For Yourself

“I have enough money to last

me the rest of my life, unless I

buy something”. — JACKIE

MASON

Do you remember the

times when you used to

cry and then your mama

would immediately give

you your milk?

How about those times when you would just need to wail loudly and

disturb your whole barangay so that your papa would be forced to buy you dirty

ice cream?

Remember those embarrassing moments when your grandmother used to

bathe you in public and take pictures of your naked self? (Oh, Lianne, you were

so small...)

That's right! These times are parts of our childhood. When we were tiny

and cute kids, we used to depend on everyone around us to take care of us, to

provide for our needs and to keep us alive.

Well, now that we've all grown-up, the days when we were dependent on

others are now gone! If you don't believe me, then, try asking your mother to feed

you now, try “forcing” your father to buy you dirty ice cream now, or even try

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asking your grandparents to bathe you in public now. They might look at you as if

you were crazy!

What happened, you ask? What changed?

Newsflash, my friend: We grew up!

Can you imagine what would happen if you're already grown up and yet

you're still dependent on others?

CENTER OF CONTROL

You're familiar with the Wheel of Fortune, I assume? (If you're not, then,

stop living under that rock and step into the real world!)

The Wheel of Fortune relies on luck and on pure chance. When they get

lucky because they can depend on others, they rejoice. But when their luck turns

against them, they blame others for their bad fortune.

The Wheel of Control, on the other hand, is what you should be holding

right now! You see, “control” is another personal finance concept that you need to

fully understand before we proceed to the technical details.

This guide is geared towards young professionals. And as such, we should

keep in mind that we alone are responsible for ourselves. We are the author of

our lives, with God as the editor. We are accountable for our actions.

We hold the Wheel of Control in our hands! God is the GPS.

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We should not be dependent on our parents, relatives, or friend. Our

financial status should not be dependent on the government as well. I know how

easy it is to blame other people for our mistakes. After all, I was once someone

who used to blame the government too. I would hate them, call them foul names,

glare angrily at them and mock them.

What good did blaming do to me, you ask?

Nothing! Blaming and being dependent on other people is foolish. It's

counter-productive. And most of all, it's a bit childish. (And no, I don't mean that

in a cute way.)

Holding the Wheel of Control made me realize something important that

changed my mindset altogether:

Hey, I have the same government with the other millionaires in the

Philippines, yet they prosper and become richer every day.

Why is that?

It was because these millionaires decided that they are to be responsible

for themselves. They realize the fact that we make our own lives. They took

action, and they are willing to answer to it.

Only when we follow their examples will we be able to put a step forward

financial freedom as well.

I want to be a go-getter. I don't want to wait anymore. I am going to do it.

Are you responsible enough to join me?

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Ten Pesos:

Make Saving

a Habit

“The safest way to double

your money is to fold it over and

put it in your pocket.” –KIN

HUBBARD

Many people often frown upon the very idea of saving. It's like

vinegar, you know? If you don't believe me, try saying “saving” in front of your

friends: I'm sure they're either going to make a sour face at you or get away from

you as soon as possible.

It's such a negative concept for a lot of Filipinos because they equate

saving to being forced, to suffering and to depriving oneself of life's pleasures.

This is so far from the truth!

Saving actually gives you access to life's pleasures!

Imagine if you started saving when you were just in high school. Oh, just

remember all the money that you wasted!

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A STEP-BY-STEP GUIDE TO SAVING

Friends, saving doesn't need to be a chore. Consider it as a rewarding

system instead! It's like receiving double pay: after your boss pays you, you then

pay your future self!

Here's the saving guide for your reference:

A. REMEMBER YOUR REASONS.

You need to stop this mindset right now and save starting now. Go back to

the Millionaire Mindset chapter now to refresh your memory. Come on, you've

gotten this far! It's time to continue!

After that, remember that saving is truly important because:

• You're right! You did earn this money. You worked for this money.

You deserved this money – that's exactly why you should save a part of this

money so that you can use it in the future!

• Remember, you can't take care of the most important people in your life if

you don't have any money with you.

• You are entitled to your salary because you worked hard for it! Therefore,

with every pay day, you should first pay yourself. (After giving back to

God, of course!)

Think of it this way: Because your past self labored and worked so hard

for your money, your present self should save a part of it, so that your future

self can use it accordingly!

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B. FOLLOW THE FANTASTIC FORMULA.

This is a self-development and personal finance book but we're only going

to focus on this fantastic formula. Ready? Have you taken your Calculus,

Trigonometry and Organic Chemistry lessons already? Is your scientific

calculator calibrated for this? You sure you can take this?

The “fantastic formula” is:

Income - (Tithes+Savings) = Expenses.

Where “income” is the money you receive after working for long hours,

experiencing heavy traffic and discreetly browsing Facebook during your lunch

times;

Where “tithes” is the money you give back to God and to the community to

show your gratitude and to let other people experience the generosity of God.

Where “savings” is the money that you will be stashing for your emergency

fund, future business fund, pending vacation fund and retirement fund, among

others.

And where “expenses” is the money you use to pay your bills, to buy a frilly

dress once in a while, to attend a concert sometimes, to purchase a life-changing

book, to pay for your transportation and baon and to hang out at a cafe

occasionally, among others.

This “fantastic formula” simply means that you immediately subtract

your tithes and savings from your income so that the remaining

would be your expenses!

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C. SAVE FOR YOUR S-E-L-F.

If you're unsure of what things you should be saving up for, it's helpful for

you to remember to always save for your S-E-L-F:

D. TACKLE THESE TOP THREE SAVING MONEY TIPS

Save money now.

Some 20-somethings are so complex up to the point that they have this

need to over-analyze everything. For me, I prefer to keep things simple.

I'm not going to bore you with minutiae about how the color of your tie

influenced today's market crashed, how the President's current girlfriend affected

the country's inflation rate or about how you should wait for 3.706074 days

before saving to optimize the value of your pesos.

Friends, there are only two best times for saving: yesterday and right

now. And because you can't travel back in time yet, you only have now. Save

money now.

Save small amounts regularly.

It's so much better to start now and save small rather than to start later

and save all.

Build your own saving & spending plan.

Failing to plan is planning to fail. Building your own plan is beneficial so

that you have a system on how much to save and where to save your money every

month. (We're going to tackle this in-depth in the next chapter.)

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BONUS: If you have debts and the interest on your debts is higher than

the interest in your savings, pay your debts first. So if your debts' interest is 20%

annually and your savings account is earning 2% annually, pay your debts first as

high-interest debts will drown you in the future.

E. FOOL YOURSELF INTO SAVING MORE MONEY

Don't force yourself into saving money.

Fool yourself instead.

How? These are 5 ways:

1. Picture your old self. Find a photo-aging program online, upload your own

photo and see your old self looking right back at you. A study done by Stanford

University found out that by enabling the young adults see their older selves, the

young adults' urge to spend today can be affected by their urge to save for

tomorrow.

2. Don't sign up for “deals”. You'll save more by signing up your email

address on group deal websites because you'll be getting all the huge discounts,

right? Wrong. I don't know about you but getting my inbox spammed by 50% off

on restaurants, gym memberships, bars and hotels isn't really going to help me

save money.

3. Set up a specific retirement date. Saying you'll retire “early” doesn't have

any impact at all! What about saying “I'll retire on June 26, 2053” instead? This

specificity would definitely persuade you to save more because you're going to

have this sense of urgency with you.

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4. Bring only big bills. Do you really want your P1,000-bill to be broken down

just because you're only buying a cup of tea latte that costs P120? Also,

sometimes, establishments don't prepare enough change so they might not even

entertain you! (Proceed with caution with this one, though!)

5. Use the 2-week rule. When you see something you really want (not need),

put it in your 2-week rule and leave the store. Think about it for 2 weeks. Chances

are your desire has already faded when you realize that you're actually better off

without it.

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Twenty Pesos:

Create a Saving &

Spending Plan

“Why is there so much month left at the

end of the money?” — JOHN BARRYMORE

The word “budget” may mean a lot of things to a lot of people.

Some view it as a nuisance while others think of it as something that is needed to

be strictly followed.

I view it as a guide. It is very difficult to maintain a budget when the

figures in that budget are idealistic. Let’s say you earn P10,000.00 per month. Do

you think it’s realistic for you to be able to save P5,000.00 per month? I don’t

think so!

The key to making a budget is basically viewing it realistically. It shouldn’t

be constricting – it should be comforting.

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6 COMMON MYTHS ABOUT BUDGETS

a. “Budgets are boring and complicated and they just make my head

hurt.”

With all the advanced technology, all the apps and calculators and all the

savvy personal finance tips around, budgets can actually be fun and easy!

b. “I don't need to make my own saving & spending plan. I can just use

my intuition.”

Intuitions are great for determining if your long-time lover is cheating on

you or if your boss secretly dislikes you – these don't particularly work for you

when you're trying to find out how much money you have left at the end of the

month.

c. “I failed at Math in high school. This means I can't budget.”

My friend, you don't need to be a super genius in Math! Unless you're a

complete Math rock star, I seriously doubt that your lessons at Calculus, Organic

Chemistry or Trigonometry would help you in your saving and spending plan.

d. “I'll just start budgeting when I earn more money. It's way too early

for that.”

Let me ask you a few questions:

Are you going to start exercising once you lose a few pounds?

Are you going to start working once you get promoted?

No way, right?

You don't have to be great to be started – you just have to start to be great.

P a g e | 32



e. “Budgets are constricting.”

This is so far from the truth. Budgets aren't constricting – as a matter of

fact, budgets are there to allow you to live comfortably. Without budgets, you're

going to be spending all your money on your fun and borrowing money to pay for

your committed expenses. How awful is that?

f. “Budgets? Ha, aren't budgets for losers only?”

I'm not really sure where you got this myth from. But, I'm pretty sure that

a responsible 20-something who has the money for giving, for saving, for basic

living and for playing is not a loser.

THREE BUDGET TEMPLATES YOU CAN USE

To guide you in setting up your first ever saving and spending plan, I've prepared

three templates for you:

1. Signal #1: Even preschoolers can start practicing this plan because of its

sheer simplicity. You can start with this one to ease into the planning habit.

Brother Bo Sanchez gives this simple template. You can handle your take-home

income with your saving and spending plan that can go like this:

Category Percent

Giving back to God and to the community 10%

Savings and Investments 20%

Committed Expenses 70%

P a g e | 33



Here is a template you can use to get started.

Now, take a moment to absorb what you've just read. Do you feel

overwhelmed? That's normal.

Do you feel scared? That's normal.

Do you feel like you can't do this anymore? That's normal, too.

Feeling discouraged in making changes in your life is a normal reaction

simply because we dread the unknown. However, don't let all these feelings bog

you down. You hold the Wheel of Control, remember?

You're doing this for yourself, for your loved ones and for the betterment

of the world, remember?

I'm serious – the more people become financially free, the more inspired,

motivated and educated other people will be too.

P a g e | 34


https://docs.google.com/spreadsheet/ccc?key=0AqP5TYbIB8x9dEszMW16MmhRM2JxWDlGOXlrSkJXOHc#gid=0


WHY BUDGETS F-A-I-L

Here's a secret: You will fail, at first. You will think what you're doing is

useless. You will think that you're going nowhere with this. Hey, you might even

send me a message on my Facebook account or on Twitter just to blame my book

for everything that's happening in your life right now.

F (Fun Factor is Not Included)

Your budget doesn't have any fun factor in it: you think that all of its

categories should only be limited to the basic spending and the core saving. No

wonder your budget is failing: you're bored out of your mind!

A (Automatic Gratification)

You don't like budgeting because planning for your future prevents you

from wasting your present. Hm? Am I getting this right? You like to automatically

feel happy so you're resorting to reckless spending.

Do something:

• Friends, take a long good look at your life right now. Is something

missing? Does something feel empty? Believe me: that something is not

stuff.

• Go back to your Millionaire Mindset. Refresh your memory as to why

you're doing this. Motivate yourself. Talk to like-minded people. Love the

fact that you're investing in your future and enjoying your present at the

same time!

P a g e | 35



I (Inflexible and Idealistic)

You think that your budget is the extreme rule. You spent P3,500 for your

basic expenses when your budget is only P3,478? Punishment! You did not plan

for your mother's birthday gift so you're not buying her any gift anymore?

Punishment! You got sick for a week so your initial budget is less than you're used

to? Punishment!

L (Low Estimation of Committed Expenses)

You always assume that your committed expenses will be lower so that you

can allocate more for your savings and for your fun money. So, when the bill

comes and your expenses are actually higher, you feel bad and kick yourself in

your head once again.

A NOTE:

Whenever I receive extra money, I don’t believe in saving all of that

money. Hey, we are still young! I suggest you cut that money (not literally,

please), give 10% back to the community, save 60% of it in your emergency fund

or in your investments, and then spend the remaining 30% for you fun!

Do what works for you.

P a g e | 36



Fifty Pesos:

Frugality & Priority Purchasing

“The real measure of your wealth is how much you'd be worth if you lost all your money”.

– ANONYMOUS

Frugality.

Sigh, this word gets such a bad

reputation simply because

people equate it to being

cheap, being thrifty and being

kuripot.

I will illustrate its meaning and

its correlation with “priority

purchasing” through a story.

FIONA AND CHIONA

To differentiate the meaning of these two, let's talk about Fiona and

Chiona, okay?

Fiona and Chiona are twin sisters. They both love saving, budgeting and

giving back to God. They both adore frilly dresses and pink fingernails. And they

both have a crush on Daniel Padilla, yes, even though they're already 20-

somethings.

P a g e | 37



One day, Fiona and Chiona have gotten their salary. After tithing, saving

and paying for their bills, they decided to spend their fun money by going

shopping (for dresses, not for Daniel Padilla!)

After browsing the stores for a while, they both take got their picks and

went in line. Their conversation went like this:

Chiona: What dress did you get? I got this one even though neon orange

is not my favorite color and even though this doesn't fit me that much. It's the

cheapest! Only P299!

Fiona: I got this P899-worth dress because I love pink and because it fits

me perfectly.

Chiona: Well, fine, maybe this dress's materials are poor. But they're

cheap anyway so I can just buy again next month.

Fiona: The materials of this dress are high-quality. I think this can even

last me for one year.

Do you get the difference between cheap people and frugal people, then?

Cheap people care about the cost. Frugal people care about the

quality.

Cheap people are concerned about getting the lowest price, whether or not

they really like the item. Frugal people care about getting the reasonable

price for an item that they deeply care about.

Cheap people practice cost-centered spending.

Frugal people practice priority purchasing.

P a g e | 38



My friends, as a fellow 20-something, I understand your spending habits.

Therefore, I know what items you spend on, what items you care about and what

things you don't really think of.

I'm so not telling you to be cheap. No way. No one likes cheap people

anyway.

I'm telling you to be frugal. Practice priority purchasing with me.

WHAT PRIORITY PURCHASING IS

It's simple, really: it's basically spending money on your priorities!

The keyword here is “priority”. Priorities are the things that matter to you

and the things that you care about.

If you're willing to sacrifice other expenses just to spend money on it,

there's a high chance that it's your priority.

What are your priorities? We've already touched saving for your

investments and giving back to God when we discussed the saving and spending

plan.

I'm asking about your spending habits. Which are you most likely to

sacrifice in order to gain something else?

It's your money. Therefore, you'll only be spending it on your priorities.

Make priority spending personal.

P a g e | 39



One Hundred Pesos:

Increase Your Cash

“A bank is a place that will lend you money if you can prove that you don’t need it.” – BOBHOPE

I've decided to include this chapter in the latter part of this

guide. I don't think that earning more is the key to financial freedom – I think

your Millionaire Mindset is.

It's not how much you make; it's how much you save and invest that

really matter. This is why I've included saving and prioritizing in the first few

chapters.

THE 5-STEP STAIRCASE

Everything starts with your belief. If you believe that you can earn money,

then you will earn money. If you believe that you can't, then you won't. It's as

simple as that.

Let us take this 5-step staircase framework into consideration, shall

we?

P a g e | 40

Mastery

Progress Habits

Pursuing Action

Powerful Attitude

Positive Beliefs and Thoughts



Everything starts in your mindset. The quality of your life is dictated by the

quality of your thoughts – this is why you need to fill your mind up with

inspiration, motivation and positivity in order to keep you going.

Once you believe these wholeheartedly, the way you respond to your life

changes for the better. This new life view then encourages you to start pursuing

action and own your life.

After starting and researching and experimenting, you'll then familiarize

yourself with the actions that you need to repeatedly do: your habits. Once you

dedicate enough time, determination and passion into doing these progressive

habits, the only road left for you to encounter is the road of mastery.

INCREASE YOUR C-A-S-H

However, there are times when even though you have immense amounts

of self-control and even though you have a strong conviction on your Millionaire

Mindset, you're still far away from being financially free because you simply are

not making enough money.

This is where increasing your cash comes in.

Now that we've covered beliefs, attitudes, actions and habits, we can finally

talk about increasing your cash naturally.

C – lear out the clutter in your closet.

Do you really need all your clothes in your closet? Yes, I’m talking about that old

sweater that you only wore once because your parents told you to.

P a g e | 41



A - dopt a part-time job online.

Adopting a part-time job wherein you don’t need to leave the comforts of your

own home is great! You can be a virtual assistant, a freelance writer, a business

blogger or a graphic artist! The Internet is your friend!

S – ell your services.

There is nothing wrong with testing your talent in the service-based profession.

Just to be sure that we're on the same page here, I'm talking about moral, decent

and wholesome services, okay? Come on, you're not that desperate.

H - one your knowledge & skills and get promoted.

If you never ask, you will never know the answer. “Ask and you shall receive”,

yes? Don’t think that your boss will randomly ask you if you want higher pay! Be

responsible for yourself, remember?

A word of caution, though: there is nothing worse than a person who

works hard but never pays attention to his loved ones. Keep it in moderation!

You’re awesome. Everyone is. This is why we all have the capability to

produce more cash.

Go out there and make things happen.

P a g e | 42



Two Hundred Pesos:

Protect Yourself & Your Loved Ones

"You don't have to die in order to

make a living." - LYNN

JOHNSTON

Life is a huge and

unpredictable adventure,

guys. Today, you can be eating

gourmet food while tomorrow

you can be surviving off of

instant noodles for your

breakfast, lunch and dinner.

Now, you can be enjoying the products of your hard work while later, all these

earnings may be wiped away in an instant.

This is where security comes in.

A WALK IN THE PARK

Let's say that you love walking in the park to exercise, to brainstorm and

mostly to stalk on your long-time crush in real-life. So that you won't be too

obvious, you brought your little brother with you during your walk.

You heard that it was going to be a nice weather – not too sunny and not

too rainy as well. However, before going out, you still applied sunscreen lotion

and brought your lotion bottle, rain coat and umbrella with you.

P a g e | 43



Upon going out, you were shocked to know that the sun immediately

intensified its rays. Gasp! It was a sunny day! Good thing you applied sunscreen.

After 3 hours, though, your crush is still nowhere in sight. Also, the sun is

still angrily glaring at you and your protection from it is deteriorating! What you

did was apply sunscreen again. Thank God you brought the bottle with you!

Your emergency fund is your sunscreen lotion:

- It's worth 3-6 months' of your monthly expenses.

- It's supposed to be accessible and liquid so that you can easily tap into it for

emergency situations.

- After using it all up, you're supposed to fill it up again.

After waiting for an additional one hour, your Daniel Padilla-look-alike

crush appeared. He's still as attractive and as suave as ever.

Suddenly, you felt a hint of wetness – you noticed that light rain was

drizzling. It's umaambon! What you did was put a raincoat on you and your little

brother for protection.

Your rain coat is your health insurance.

- You need it for sudden medical emergencies.

- Your hospitalization and medical expenses are covered so you don't have to

watch your life savings be swept away.

- There are many types of health insurance but you have to shop around and get

the best fit for you and for your dependents.

“Blast this rain”, you thought. Now where was your crush? Oh there, he's

there and walking... Walking away! He's holding hands with someone? Who? Oh

my gosh, was he holding hands with your best friend?

P a g e | 44



Your best friend and your crush are going out? To make matters worse, the

rain even got stronger.

Heartbroken and panicking, you opened your umbrella and gave it to your

little brother so that he could cover himself. Then, you run after the couple while

crying in pain and laughing at the irony of it all.

And your umbrella? It's your life insurance.

- When you become disabled or when you pass away, your life insurance would be

left to your dependents.

- Your dependents will then rely on your life insurance to stand as your income

replacement.

- Life insurance makes sure that your loved ones are protected even after your

death.

I'd like to remind you that life insurance is meant to be as an income replacement

or as a family protection, okay?

• TERM Life Insurance is perfect for:

◦ Twenty to thirty to forty-somethings. It protects your dependents while

you're gone.

• PERM (Whole) Life Insurance is perfect for:

◦ People who sell insurance. It protects your dependents while you're

gone and makes the agent who sold it to you lots of money. Boom

boom pow.

P a g e | 45



Five Hundred

Pesos:

Get Started With

Investing

“Inflation is when you pay fifteen dollars

for the ten-dollar haircut you used to get

for five dollars when you had hair”. - SAM

EWING

Inflation is a bad thing. It is the reason why putting your long-term savings in

a bank is not a good idea.

INVEST TO PROGRESS

Rule of thumb: Your investment money should be in investment

vehicles that beat the inflation rate.

The inflation rate of the Philippines is recorded as 2.80% as of June 2013.

And how about the time deposit rates in your banks? Usually, they’re between

0.875% to 1.85% only!

This means that your money which is stuck in the bank is

actually losing its value over time.

The only way to combat inflation? Invest.

P a g e | 46



Investments are available for people of all walks of life now. Gone are the

days when investing is only for the rich. Now, we can all invest with the initial

amount of either P5, 000 to P10, 000!

We as young professionals owe it to our older selves to invest.

You should remember that the best way to prepare yourself with investing

is through self-insight.

Simply speaking, know your goals.

Short-term goals: (1-4 years): You will need the money in a few years’

time so you need to invest in something where the possibility of losing money is

very small. Examples: Retail Treasury Bonds.

Medium-term goals: (5-9 years): This is where there’s a chance that

you will lose some money although there is also a chance wherein your

investments will yield a substantial profit. Examples: balanced mutual funds

and bond mutual funds.

Long-term goals: (10 years and beyond): This is where there is a chance

that you will lose a portion of your money within a short period of time, say,

losing 10-30% in a span of two months. This is also where there is a chance that

you will earn huge profits, provided that you keep the money in for the long term.

Examples: equity mutual funds and the stock market.

P a g e | 47



TIPS TO KEEP IN MIND:

1. Invest NOW. Compound interest working for you for a very long time is

your best friend. Later you will see that when you start investing early, you

will be able to get a huge amount of money just by investing a little

amount.

2. Diversify your investments. Don’t just bid everything on one

company. This is because if one company folds, then you will be sure that

the other company’s got your back.

3. Make investing your habit. Treat is as one of your bills. Make your

money work for you. Invest consistently and regularly so that you will

make it as your habit as time goes by.

Let’s say you invest in a mutual fund company with an average annual returnof 9%?

Your AgeNow

To have 1 Million Pesos at a specific age, youneed to SAVE & INVEST the following amountsmonthly (9% Annual Return)

At age 30 At age 35 At age 40 At age 45

21 6,400.00 3,202.76 1,810.87 1,085.21

22 7,556.20 3,630.55 2,017.69 1,198.49

23 9,057.54 4,137.56 2,253.85 1,325.42

24 11,076.65 4,745.56 2,525.00 1,468.05

25 13,924.37 5,485.01 2,838.24 1,628.87

26 18,222.39 6,400.00 3,202.76 1,810.87

27 25,421.23 7,556.20 3,630.55 2,017.69

28 39,872.41 9,057.54 4,137.56 2,253.85

29 83,333.33 11,076.65 4,745.56 2,525.00

30 13,924.37 5,485.01 2,838.24

31 18,222.39 6,400.00 3,202.76

32 25,421.23 7,556.20 3,630.55

P a g e | 48



33 39,872.41 9,057.54 4,137.56

34 83,333.33 11,076.65 4,745.56

35 13,924.37 5,485.01

36 18,222.39 6,400.00

37 25,421.23 7,556.20

38 39,872.41 9,057.54

39 83,333.33 11,076.65

40 13,924.37

41 18,222.39

42 25,421.23

43 39,872.41

44 83,333.33

P a g e | 49



One

Thousand

Pesos:

Grateful?

Give Back!

“One of the strange things about life is that the poor, who need money the most, are the

very ones that never have it.” — FINLEY PETER DUNNE

Giving back to the community is such a wonderful feeling.

I want you and your loved ones to be able to experience this wonderful

feeling, too! And so for today, I am going to enumerate some perks of donating:

1. It makes you content!

This is my main reason for donating. Donating feeds my spiritual

hunger. God must have given us our own versions of spiritual hunger. Some

people mainly cope with it through religious rites. Others sing songs of worship.

Personally, I choose to give back.

2. It gives you more time to appreciate God's goodness.

Donating gives me the mindset that I am indeed blessed by God in so

many ways. I think sometimes, God gives us more than enough so that the excess

P a g e | 50



can be given to other people. Let others feel God's love through you and feel good

about yourself.

3. Practically speaking, it helps clean out the clutter.

Obviously.

4. It promotes bonding.

I've said it before and I'll say it again: doing something together promotes

familial bonding with your relatives and romantic bonding with your special

person. Take a group of people who feel good about themselves (See #2) and let

them experience that feeling together.

Instant satisfaction guaranteed!

Now that we are on the subject of giving back, let me ask you this: have

you heard of tithing?

A WORD ON TITHING

Tithe means one-tenth of a something. It can usually be translated to 10%

of a something.

Don't feel bad about tithing – you can actually start with 5% of your money

and then work your way up to 10% or even more. What matters is your

intentions. God won't judge you based on the amount you give!

This tithe is then given as a voluntary contribution to support

something that manages to give us "spiritual food".

P a g e | 51



Here are some Frequently Asked Questions regarding tithing:

1. Why should I tithe?

You should be able to tithe to be able to give back to God. God is the source of

everything that we have right now, and tithing adds conviction to that belief.

2. Should I tithe only to the Church?

Everyone has different views regarding this one, so I believe that answering this

objectively can be deemed difficult. If you believe that other religious

organizations are also able to provide you your "spiritual food", then go ahead!

3. When should I tithe?

A person should tithe upon receiving his monetary blessings.

4. Can I tithe in other religious organizations as well?

Like I have said, tithing is up to you. If other organizations can also help you find

more meaning in your life, then by all means, go ahead.

If you want to show to God how grateful you are, tithe!

You can even use your tithes to giving back to non-profit organizations or

charitable institutions.

Make your money mean something meaningful.

P a g e | 52



WHAT'S NEXT?

How did you find this book? Helpful? Inspiring? Bitin? :) Here are 4 quick

offers to you:

• A FREE REPORT: “50 Things You Can Do Right Now to Prepare for

Retirement”

◦ Just send me a review of this e-book to my email at

[email protected] or post your review on your

blog and email me the link to get the FREE report!

• A FREE SUBSCRIPTION

◦ Join us at TheWiseLiving.com and get free posts on controlling your

cash, improving your income, managing your money and being a 20-

something millionaire!

• A FREE HELPING HAND

◦ If you find this e-book helpful, please share it to your friends by

giving them the link to my blog at TheWiseLiving.com Who knows?

They might even thank you for helping them open their eyes and own

their lives!

• A FREE CONSULTATION:

◦ Like what I've mentioned, I'm well on my way to being an official

financial advisor. For your money questions, budgeting basics,

investment inquiries, insurance queries and basically, financial

P a g e | 53






planning needs, feel free to go and email me at

[email protected]. I'd be happy to guide you!

Stay tuned for the detailed, comprehensive and full version of the “12-

Step Guide to be a 20-SOMETHING MILLIONAIRE” this October 2013.

This book will contain more lessons like:

• A “Did you learn” section at every end of the chapter;

• Making your own Millionaire Mindset to motivate you to be a

millionaire;

• In-depth explanations of 5 Common Stages of Change to empower

you;

• Solutions for 7 Barriers to Wealth to help you overcome these

obstacles;

• Relatable anecdotes that make you realize you are not alone;

• Complete Step-by-step Guide to Saving to systematically guide you

into making saving your habit;

• Complete 3 Saving & Spending Templates – with actual

percentages! (including the template that works for me) to guide you in

making a budget that works for you;

• How to get started with Priority Purchasing to make sure your

money only buys the things that matter to you;

• How to compute for your own life insurance coverage to know if

you're insurance coverage is enough to provide for your family when

you're gone;

• The simplest definition of inflation to make you understand why it's

foolish to put your long-term savings in the bank;

• The 3 Basic Types of Investments to let you know which investment

type is right for you;

P a g e | 54




• How it's possible to invest only P300,000 and get almost

P20,000,000 in returns to motivate you to invest now;

• The 6 Key Rules to I-N-V-E-S-T to retire with tens and hundreds of

millions along the years;

• The Importance of Giving to give you a more abundant life; and,

• The 5 Money Beliefs that can Change Your Mind to overhaul your

financial mindset and help you think like a millionaire and be a 20-

millionaire;

Excited? Me too!

Right now, feel free to email me at [email protected] for

your money questions, insurance advice and investment queries. I'd be waiting

for you, my friend!

Live wisely,

Lianne Martha M. Laroya

P a g e | 55


Documents

12-Step Guide to Be a 20-Something Millionaire (Free Version)