Financial stewardship

“Some people have become so desperate that instead of using the money they have to buy food, they would buy a lotto ticket,” observes Eduardo Roberto, Jr. of Crown Financial Ministries and Community Economic Ventures, Inc.

“They hope na manalo sila para ma-solve ang lahat ng kanilang financial problems. May promise pa kay Lord na ibibigay nila sa Kanya ang kalahati ng premyo kung sila ay mananalo,” he said.

“But even if we win the lotto we can go back to being pulubi. Tingnan mo ang mga news stories tungkol sa mga lotto winners dito sa Pilipinas at pati na sa America: P80M lotto winner, naputulan ng kuryente; $18M Missourian lotto winner, no more cash; Florida lotto winner wished he had never won.”

“These lotto winners either mismanaged or spent all their money within only a few years after winning and went back to being bankrupt and depressed. Hindi kasi marunong humawak ng pera para hindi ito maging bitin,” Roberto added.

God cares about how we manage money

Roberto himself admitted to his share of business failures and bankruptcy. “Ginamit ng Panginoon…to teach me valuable lessons at magtiwala sa Kanya. Nabukas ang mga mata ko sa mga kasalanan ko: greed, discontent, laziness, fear and distrust. Nag-commit ako kay Jesus Christ as Lord and Savior ng aking buhay – including my finances,” he narrated.

“Bilang isang bagong committed Christian, nagbasa ako ng Bible at nag-attend ng Bible studies at seminars. From these, I learned about ‘financial stewardship’.”

“Ang ibig lang sabihin ng financial stewardship ay pinagkakatiwalaan – entrusted – lang tayo ng Panginoon to be stewards or managers of the money – big or small – that He has given us. God owns everything (Psalm 24:1),” he shared.

Money talk

Money is the second most talked-about topic in the Bible. The Bible has 500 verses on prayer, 500 verses on faith, but over 2,000 verses on money and possessions.

“Bakit kaya? Siguro, God uses money to teach us to trust Him and to test and develop our character. Sabi nga ng Bible, if we cannot be trusted with worldly wealth (money), how can we be trusted with true wealth (eternal life in heaven)?”

The “Automatic Millionaire” Savings System

As board member of Crown Financial Ministries and CEVI, a microfinance institution, Roberto shares Strategy 1 to 7 in learning the basics about money handling  principles that are sound and which take ground in the Bible.

•Strategy 1. SAVE. One day, Roberto was at a bookstore and saw a copy of “The Automatic Millionaire” by David Bach. He followed the advice in there. He said that he “called up the bank manager kung saan dinideposit ang aking salary at kita sa iba’t ibang negosyo naming mag-asawa. Nakiusap ako sa bank manager: Please automatically get 50 percent of the amount in my current account and put it in a separate special savings time deposit account, at the end of every month.”

•Strategy 2. GIVE. Why are we talking about giving away money when we have to save? Giving back to God and honoring Him is a hard thing to do if one hasn’t heard about or don’t believe in God’s promises in the Bible. You give not because you are expecting a reward or want a bigger return on your investment. When you reach this point in your Christian life, many times, you will find yourself giving and even forgetting about what you gave. Then later on, the Lord blesses that decision with more money so that you, in turn, can bless more people more frequently.

•Strategy 3. GET OUT OF DEBT AND STOP BORROWING. Are you addicted to using credit cards? Then do “plastic surgery”! Cut your plastic – your credit cards – into half if you can’t control your spending. “Okay lang gumamit ng credit cards, basta disiplinado ka at nababayaran mo nang buo ang utang mo pagdating ng monthly billing,” Roberto advises. He also encourages having a steady income before getting a housing loan, and never to cosign loans. “Huwag managot sa utang ng iba,” he said this is a trap as it is possible to be in debt even if you were not the one who borrowed the money. Another is “huwag umutang para magpa-impress”. He quoted actor and humorist Will Rogers: Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.”

•Strategy 4. LIVE SIMPLY. According to “The Millionaire Next Door” by Thomas Stanley and William Danko, America’s millionaires live simple lives. Forbes magazine reports that Warren Buffet, who is worth $47B, drives a pick-up truck and lives in the same house that he has lived in for the past 50 years. Carlos Slim, the 70-year-old Mexican billionaire (richer than Bill Gates) lives in the same house that he bought 40 years ago. Ingvar Kamprade, founder and owner of the Swedish furniture company IKEA, still rides the bus and flies economy class. Henry Sy, frugal founder of SM and the Philippines’ richest man, “namamalengke pa rin at tumatawad pa sa mga suki. Ang mga totoong mayaman ay hindi mga pasikat!,” this was emphasized. “What’s important is not how much you make, but how much you save. It is much easier to save money if you live a simple life. And the important thing when you start earning is not to let your possessions possess you.”

•Strategy 5. MAGSIPAG, MAGNEGOSYO. Enterprising means having the mindset to start a business. Go Negosyo, a movement started by Joey Concepcion (www.GoNegosyo.net), believes that entrepreneurship will help Filipinos get out of poverty. “If you want to become an entrepreneur, magsimula ka ng maliit na sideline. Ang daming pwedeng gawin. For example, pag-aralan kung paano kikita sa Internet. Pwede kang mag-set up ng mga online shopping sites tulad ng mga Pinoy na based dito sa Pilipinas na sina Monching Romano (Divisoria.com), Rianna Trinidad ng Funky Feet (proudmamastore.multiply.com). O kumita sa mga blogs mo tulad ni Anton Diaz, dating manager sa isang multi-national company na naging full-time blogger; Carl Ocab, high school student na kumikita ng more than P80,000 a month sa kanyang website,” Roberto enumerates. “Read more examples from the Go Negosyo book series available at bookstores nationwide.”

•Strategy 6. INVEST. There are many heartbreaking stories of people victimized by scams. These are schemes that promise five percent interest per month. “Hindi per year ha,” Roberto pointed out. “Ang mga bangko kasi five percent per annum lang ang interest. Too good to be true di ba? So, follow stock investor/philanthropist John Templeton’s advice: “Before you invest, investigate. Lesson is “if it’s too good to be true, it probably is! Don’t let greed or desire for fast money cloud your judgment,” he added. To learn more about investing in real estate in the Philippines, he recommends attending Larry Gamboa’s ThinkRich Pinoy Seminars. Visit www.thinkrichpinoymanila.blogspot.com. For investment in mutual funds, visit PinoyMoney Talk.com or RandellTiongson.com for the latest tips and news on the best mutual funds and other investment programs to consider. Subscribe to MoneySense magazine or attend seminars organized or promoted by MoneySense and the Registered Financial Planners Institute to get more knowledge on smart investing. Meanwhile, Citisec (www.citiseconline.com.ph) offers free seminars on how to invest in the stock market. For small business, franchise or direct selling distributorship, read Mark So’s “How to make extra money with zero capital” in his blog at markso.wordpress.com. He is the owner of BusinessMaker Academy.

•Strategy 7. EDUCATE YOURSELF. Chinkee Tan, author of “For Richer and For Poorer”, said: “Rich people educate themselves more than they entertain themselves. Poor people entertain themselves more than they educate themselves.” Invest in increasing your intellectual capital, Roberto advises. “Ang iyong intellectual capital ay ang iyong talino. Ang problema, karamihan ay inuubos ang pera sa cellphone load kaysa sa libro o seminar kung saan matututunan ang isang bagong skill o information. Keep on reading good educational materials para lumawak ang iyong kaalaman.”

Eduardo Roberto, Jr. or Ardy is an award-winning entrepreneur and the author of the OMF Literature bestseller, “Ang Buhay na Hindi Bitin”. He also wrote “Ang Pera na Hindi Bitin” which is the basis for this article on practical living. To get enough of the “life saving” information, call 255-5012 and order through Lynnie Leal, OMFLit sales and marketing officer.