How to Become Financially Independent in Seven Years or Less

I am 59 and looking forward to a financially stable life. I can't complain, but I also want more in life. I feel I am just beginning to accelerate in my quest for financial independence. That's part of the reason why I blog. It helps me discover out-of-this-world ideas, opportunities and people. I learn from them.

Mark Ford, Editor of the Palm Beach Letter, son of a teacher, started out with no money but built a multi-million fortune.

If you are middle aged, whose net worth is meager,  and your income is barely sufficient to meet your expenses, this article is for you. He says that we should take responsibility for our situation and make changes. When we see our financial goal not aligning with our age, we are to take courage. Don't give up on your dream of being wealthy. Mark says that we always have the ability to change our financial life. But it will take a bit of time and patience.
Here are four things he suggests we do:

1. Accept the fact that you are solely and completely responsible for your financial situation. Nobody can change your future but you. The sooner you do that, the anger and blame will be dealt with and you begin to feel financially powerful.

2. Set realistic expectations. Don't be in a hurry to get rich. Be contented with 10%-15% returns per year. This is a journey and like a train, you can't go from 0 to 100 mph in no time flat. Be content with 10 and then 20 and soon you're doing 100. Your journey to millions of dollar is earned $100 at a time.

3. Thoroughly understand the difference between spending, saving and investing. Mark says that every paycheck you get cover your necessary expenses first, then put money on your savings and then put some money toward investments. Then and only then, after paying yourself, should you add to your spending.

4. Recognize that your net investible income (the amount of cash you have after spending and saving) is the single most important factor in determining how quickly you will become wealthy. Commit to adding to your income a second income.

I love the what he says about the value of time: devote your time to wealth building rather than spending time on non-productive hours like watching TV.

I am so happy to discover this very practical and doable tips from a man whose been there and came out successful. If Mark can do it, we can.

To your debt-free life,
Jimmy

P.S. I have changed the way I think. Blogging  about my passion, helped me gain not only personal but global economic realities.

Photo credit: http://www.flickr.com/photos/rmgimages/4882450962/sizes/m/in/photostream/

5 Simple Ways to Erase Debt

I used to owe a lot of people and credit card companies. I was deep and wallowing in debt. I had a good job, driving my own car yet deep in debt. I didn’t know how to manage my money. I was loose.

Then one day, I received a demand letter from a law office, threatening me to pay or else? Being a young, I didn’t know how to handle the threat. I felt like it was a shock treatment. I learned my lesson. I decided to do something about my debt. I talked to the credit card company manager and asked for practical way to pay my debt. Yes, slowly but surely I was paying and getting out of debt.

http://www.flickr.com/photos/17642817@N00/3378489363


I learned to prioritize my expenses. It was like starting all over again. Somebody taught me how to budget. It was simple but effective. I used a simple system called the “envelope” system. Each time I received my pay, I put money on each envelope, starting with “debt payments” envelope then the rest. My life changed. I cut down on self-indulgent activities and stuck to my budget.

When I got married, the first thing we did was to make a budget. My wife, my lovely wife, Maritess and I agreed to have a budget and stuck with it. I got out of my credit card debt. So, it was a good start!

Today, we still work on a budget. We do this at the start of the year. We review it at the middle of the year and assess it at the end of the year.

Here are 5 simple ways to erase your debt:

1.        Decide you want to get out of debt.

2.        Do something about it. Contact all creditors, honestly relate your problems, and arrange an equitable repayment plan. Creditors love it when you talk to them sincerely. And you know what? They will agree with your repayment plan.

3.        Destroy all credit cards. Buy on a cash basis, and sacrifice your wants and desires until you are current.

4.        Make a budget. Establish a payment schedule and allocate at least 5% of your income for debt payments.

5.       Stick with your budget. If the expense is not in the budget, do not proceed. Be disciplined.

http://www.flickr.com/photos/50715604@N07/4882450962


Yes, discipline is an integral part of this debt-free process.  My coach in “Vertical Leap”, Al Hollingsworth, defined Discipline as “delayed gratification”.

Why stay in bondage to your debt? You can live a debt-free life now. Just make a decision!

To your debt-free life,

Jimmy Ching

P.S. This year, instead of focusing on not getting into debt, I decided to increase my income by creating additional income stream. I have joined Jomar Hilario’s “The O.nline Mentoring Club”. He’s helping me make money online.. right now! Jomar is one of the Philippines' foremost online business guru. He has helped a lot of people become internet entrepreneurs. What I am learning from Jomar, I wish I did when I was younger. But, the good thing is you can always start anytime you decide to do something about your situation. Today I am being mentored by one of the best in online business guru. How about you?

Winning Over Debt By Changing the Way You Think

I graduated from college because my parents decided they would do everything to finance my schooling. I graduated from one of the finest schools in the country; Mapua Institute of Technology (thought you might want to know). But, here’s the thing, they did it by borrowing money from their friends and relatives. As a result, they ended up in debt, financially and emotionally. I will forever be grateful to my dad and mom for their support and commitment to give us the best education.

In debt even before they leave

Like them, many are also going through the same process in making both ends meet just to see their children finish school. I know this because I meet them every day. You see, I teach “Work Ethics and Values” seminar in our company, Uno Overseas Placement, Inc. We send out workers to Japan as Technical Interns. One thing common to these Interns is that they go into debt even before they leave for Japan. This is disheartening to say the least.

Connecting to the right people 

When I came across the teachings of Bo Sanchez and later joined his Truly Rich Club, I made it my goal to impart the principles I’ve learned to our interns. I love sharing with them these principles because I have seen the effects of these in my own life. Today, I have almost eliminated my credit card debts.  The first thing that Bo teaches is the renewing of our minds. Changing the way we think. Bo said, “Unless You Get Consistently Immersed In a New Way of Thinking, You Won’t Change!” 

People in debt could not think positively because they are in bondage to fear, worry and anxiety. The more they think about their debt, the more they sink deeper into it. Their ability to change the way they think is impaired.

A new mind set

In order to change the way we think, we have to renew our minds. Bo does this by supplying us with positive, encouraging words. In TrulyRichClub, we are fed daily with God Whispers, Soulfoods and lessons on how to create additional income streams. I love it when I receive my daily dose of encouraging words that renew my mind.  Because of my involvement with Bo, I also came to know Jomar, his mentor in internet marketing (but that is another story, which I will tell you in my next letter). Bo says that in order to change your life, you need to get rid of your poverty mindset and gain a wealth mindset. He has learned how to change mindsets: Through the simple act of repetition.  Because repetition is the mother of all skill.  By constantly immersing one’s mind with a new way of thinking, a new mindset is formed. This was the reason why Bo created TrulyRichClub membership.

Opportunity, not Security

Opportunities! Look for opportunities in your daily situations and problems. It was Gen. Douglas MacArthur who said, “There is no security on this earth, there is only opportunity.”  When we change the way we think, we begin to see opportunities. The Bible tells us that “As a man thinks in his heart, so is he.” If you think you are a winner, then you will be one. If you think you are a loser, then you will be one. In our “Managing our Resources”, a topic we teach our interns in our values seminar at Uno Overseas Placement, they learn how to do a simple home budget. This is the first step towards putting their financial house in order and this will lead to living a debt-free life.

To your debt-free life,
Jimmy Ching

P.S. If you are reading this and would like to gain financial freedom and released from your debt, why not try TrulyRichClub! When I did, I felt like entering into a new dimension of opportunities and possibilities, limitless possibilities. It is worth it! Remember: The only thing permanent in this world is change!