DOES SMARTNESS PREDICT WEALTHINESS?

MY LIFE AS A STUDENT

AS A STUDENT I HAD THE MOST TROUBLE WITH THE FOLLOWING:

1. Those school activities that requires speaking in front of classmates. I am a very shy person, this trait take a lead in my areas of weakness. When i was in grade one, my Filipino teacher criticize the way i deliver my poem because of my voice that lacks loudness and clarity. Worst experience happened when i reach grade three, my Civics and Culture teacher stopped me while i was reporting a current events news because she thought that I wasn't serious. My whole body including my voice was shaking because of so much fear and she thought that I was laughing while am reporting. That was my primary years in school and I did have struggles to improve myself. When i reached high school i saw myself the same until i reached college, im still the same. I had poor grades in my oral communications class. My teacher had to let me used a microphone because she can't clearly hear my advertisement delivery. Classmates knew me as a very shy person and i seem to self-fulfill how people label me. I remain this way because that was the image that people expect of me. I always pray so hard for guidance and help so I could deliver a report successfully and so i could do better with my oral exams. I was totally dependent with Divine Intervention. But somehow at the later years of my college days i showed some improvements, although i still felt tensions while reporting in front of my classmates i managed to speak loudly and clearly. I remember getting a very good comment from my Industrial Psychology teacher for delivering a report successfully.

2. Those activities that forced myself to lead a group. I have this very poor leadership skills. I really had trouble delegating responsibilities. I didn't know how to coordinate and unite a team. And i still wonder up to now why my group mates chose me as their leader. Perhaps like me they hated responsibilities. And for a person who didn't know how to say no, i always get bigger responsibilities in group activities. I often end up doing all the researches and preparing all the reports and visual materials.

3. Those that requires mathematical abilities. Although am quite slow in memorization and reading skills, mathematics was my most limited skill. I am very poor in computation or working with numbers. This was a particular handicap in my entire academic life. Although i got passing grade for this subject, still i never liked learning math. This weakness happened to be one of the reasons why i pursue BS Psychology course for my tertiary education because the curriculum only offers 9 units math subjects. (although math and statistics seemed to be related i learned to like and appreciate statistics more in my Post Graduate years but not pure mathematics)

My school performance had been very inconsistent. I sometimes get high grades and sometimes very low grades. And yet no matter how i work hard to remediate my areas of weakness I'm still dealing with them up to now. I still want to improve my communication skills,leadership skills and most of all my self-confidence level.

I thought before that grades are very important for a person to become financially secure and successful in life. Does smartness predict wealthiness? Here are some facts by Ohio State economics professor Jay Zagorsky

The first one has been a belief by almost all of us:

It seems that the smarter you are, the more you tend to earn. For each IQ point you have above someone else's IQ, you'll earn between $200 and $600 more.

The second one is more surprising, People with high IQ do not end up with more wealth.

We who are smarter than the average bear (I'm including myself and you) would reasonably assume, then, that smarter people would end up wealthier. But that was not suggested by the study. Instead, people with higher IQs and incomes tended to spend more, maxing out credit cards and paying bills late. At the end of the day, those with lower IQs often had a greater net worth.

Zagorsky went on to note that "intelligence really isn't one of the key driving forces to become rich. In fact, people at the middle of the smarts spectrum have the fewest money problems."

As an example to this, is Bo Sanchez' life, a Filipino Catholic preacher who rise up from poverty to financial independence. In one of his talk he said that of his entire school life, most of his grades are at stake of failing, he remember getting an F in English composition, line of 7 grades in Filipino and Mathematics. He was not even accepted in college at Ateneo de Manila because he failed in the entrance examination. He was a concern to his parents but if you look at his life at present, he is an author of best selling books in the entire Philippines and Asia, owner of a publishing company and a great entrepreneur. He started from scratches and gradually rose to achieve financial independence. He did not have high academic performance and high IQ as requirements to reach the top.

The bottom line then
Here's my favorite Zagorsky conclusion: "Intelligence is not a factor for explaining wealth. Those with low intelligence should not believe they are handicapped, and those with high intelligence should not believe they have an advantage."

So the next time you're thinking you are not smart enough to achieve financial security , think again.

FILIPINO MYTHS ABOUT MAKING MONEY

( from the seminar on Financial Planning that i attended last Saturday, August 18, 2007)

Myth No 1: Financial security lies within having a good paying job with a good company
The right belief is that financial security lies in wise investing.

Myth No 2: My family ( relatives ) will take care of me ( especially after retirement)
The right belief is that only you can take care of yourself. You cannot rely on your
children to take care of you. They have their own concerns and responsibilities also.

Myth No 3: You must have money to make more money
The right belief is that money is an idea and ideas create wealth

Myth No 4: Failure is bad
The right belief is that failure is essential to success

Myth No 5: All debts are bad
The right belief is that there is such thing as good debt

Myth No 6: Money is the roots of all evil
The right belief is that money allows you to become more generous, you can help
many if u have more than enough

Myth No 7: Being rich is a lose lose game
The right belief is that being rich is a win win game


SOME FILIPINO TRAITS THAT ARE DETRIMENTAL TO SUCCESS

1. Mamaya Na/Mañana Habit ( procrastination)
2. Bahala na Habit
3. Close Family Ties
4. Hosppitality

FILIPINOS: WILL THEY GROW RICH?

It has been said that many Filipinos are very talented, intelligent and skillful. However, why most of them are poor? Do you not wonder why Filipinos are deteriorating financially, morally and socially? I wish to cover moral and social issues here but I wanted first that all of us will reflect on the issue that oftentimes exhaust us, and that is financial problems.

In the perspective of financial deterioration - we Filipinos are not doing our part towards financial independence. We desire to become financially secure and yet our desires remain a desire forever. We wish to own a good business, to finish schooling, and to earn extra income but our actions are not heading towards those goals.

Certain Filipino cultural traits, such as ningas kugon (excessive personalism and inordinate family centeredness) have influence our slow to progress. We often blame our corrupt government but isn't it that change should start within ourselves?

I remember, when I first receive a job I was so excited to work. I wake up early, arrive early at the company where I work, and I open my office one hour before other departments could open there offices. I really work so hard, leave the office late. I always accomplish my work for the day and submit reports earlier than the set deadline. I have complete attendance; I don't even use my leaves (vacation and sick leaves). However, I realize lately that the energy I exerted in the past has gradually go down when it is supposed to increase. Is it true that "ningas kugon" is a Filipino cancer? I even come to the point that I am already distress with my work. I got sick psychologically and physically. My attitude may not be true to others but definitely most of us Filipinos are behaving this way. Oftentimes we are very enthusiastic at the start of doing our job but gradually we decrease our effort at a certain point. This trait is detrimental to our progress. The moment we decrease our effort we also deprive ourselves to learn. In comparison, I knew of a Filipino-American whose attitude is really in contrast to mine. While I started working at the age of 22, the person started working at the age of 17, volunteered working in a government agency in repay of a college degree. The person graduated from college then became a full time government employee, proceed studying for another course. Now the person owns a company while preserving the work in the government.

People from other countries were taught to be independent. They work so hard. They are work oriented. They set deadlines when to accomplish a certain goal. I think it is a matter of self-discipline. Every day is a learning experience. Our everyday effort or work should head us towards success. Thus, do not count your failures but rather your daily accomplishments. If you are living this negative Filipino trait, try to shift and change for the better. Enjoy life, love what you are doing but make sure it is beneficial to your future.

Serve well your family, your company, and others.

“Whoever renders service to many puts himself in line for greatness - great wealth, great return, great satisfaction, great reputation, and great joy. Jim Rohn

BASIC STEPS TO GET OUT FROM DEBT

Step 1. Cut up all credit cards. Reason: your credit is already shot and you are not looking for additional debt. What difference does your credit rating, or score, matter now. Temporarily stop contributions to your retirement funds. The main goal now, is to get out of debt. I have somewhat mixed feelings on this step. I understand the importance of saving and building your retirement and the possible lost earnings. If you are devoted to getting out of debt, you could still continue contributing to your 401(k) or 403(b) during this time. Do what makes you feel better. Start looking for ways of increasing your money. Get extra jobs, discontinue extra services, trade down cars (if possible).

Step 2. Establish an emergency fund. A good suggestion is $1,000. Get this account established as quickly as you can. Pay minimums on all debt until you get this amount saved. This will not be your entire emergency fund. This fund is designed to cover small emergencies while you are working to get rid of all of your debt. Remember, this is only a starting point. You will come back to this account later.

Step 3. Start your debt snowballing plan. List all of your debts, excluding mortgage, ranging from smallest balance to the largest. Keep this list posted on your refrigerator or somewhere else. Just make sure you are able to see it most of the time. Pay all you can on the smallest debt. Concentrate all of your efforts on this debt and only this debt. Pay minimums on all of the rest. When the first debt is gone, put all of that money and any extra on the next debt. Keep doing this until all debts are gone. Get mad and stay mad until all debts are gone. There is no energy in logic, only emotion. The reason for this approach is purely a mind-game. You can see debt going away quicker. Will it make better sense to start with interest rates, probably, but as I said, I want you to see debt going away and get the feeling of accomplishment. By seeing debt going away quicker, you will be motivated in continuing.

Step 4. At this point, the only debt you have is the mortgage. We will not touch this debt yet. Now go back to your emergency fund. Build this fund up as quickly as you can. All of the money you devoted to paying off your debt can now be added to this emergency fund. A good rule of thumb is to have at least 3-6 months of expenses saved in this account.

Step 5. Fully fund all of your pre-tax retirement options. Max out all you can. You should also take a good look at your insurance needs. Always get level, guaranteed renewable term life insurance. Never get whole life. Your policy should be worth 10 times your annual salary. Why? Your family is accoustomed to living on $50,000 a year. You would want a $500,000 policy. Your family will be going through a hard enough time in losing you. Why also make their financial life suffer as well. Your spouse could invest the $500,000 and at a 10% return, they will still be getting $50,000 a year. With your emergency fund fully funded, look at your auto insurance. Deductibles could be raised. This will save you money.

Step 6. Now is the time to start saving for your kid's college fund. I know you think this should have started a long time ago, but it did not meet your immediate goals back then, when you were in debt. Do not let the guilt of not doing anything for the kids stop you, in fact the guilt should be motivation for you to get to this step even quicker.

Step 7. Now is the time to attack the mortgage. Let's get rid of this as soon as possible and have the biggest mortgage paper burning party your neighbors have ever seen. You may be saying, but why? What would you rather do, send a lot of money to the bank, just to get a little back from the IRS? I do not think that makes good financial sense. Spend a lot to save a little, doesn't make sense to me.

Step 8. Now let's get rich. You have zero debt at this time. What are you going to do with all of the extra money? Invest to your little hearts content. Very soon, you will be wanting to give away lots of your money to charities. You are now a giver instead of a spender. How much buying power do you have now. Just go to a merchant and offer cash for any item, look at how fast the price drops.

Personal finance is not a microwave, it is like a crock-pot. You can't get there quickly. Liken it to climbing a mountain. You take very small, careful steps. .

By following these steps, you will be well on your way to obtaining Financial Peace.

.

*Ideas for this were taken from Dave Ramsey's "Financial Peace." Lampo Press

http://moneycentral.communities.msn.com/YourMoney/creditproblems.msnw?action=get_message&mview=0&ID_M

Top 10 Traits of Highly Successful People -That You Can Learn!

By Philip E. Humbert

1. They work hard! Yes, they play hard, too! They get up early, they rarely complain, they expect performance from others, but they expect extraordinary performance from themselves. Repeated, high-level success starts with a recognition that hard work pays off.

2. They are incredibly curious and eager to learn. They study, ask questions and read – constantly! An interesting point, however: While most of them did well in school, the difference is that they apply or take advantage of what they learn. Repeated success is not about memorizing facts, it’s about being able to take information and create, build, or apply it in new and important ways. Successful people want to learn everything about everything!

3. They network. They know lots of people, and they know lots of different kinds of people. They listen to friends, neighbors, co-workers and bartenders. They don’t have to be "the life of the party", in fact many are quiet, even shy, but they value people and they value relationships. Successful people have a rolodex full of people who value their friendship and return their calls.

4. They work on themselves and never quit! While the "over-night wonders" become arrogant and quickly disappear, really successful people work on their personality, their leadership skills, management skills, and every other detail of life. When a relationship or business deal goes sour, they assume they can learn from it and they expect to do better next time. Successful people don’t tolerate flaws; they fix them!

5. They are extraordinarily creative. They go around asking, "Why not?" They see new combinations, new possibilities, new opportunities and challenges where others see problems or limitations. They wake up in the middle of the night yelling, "I’ve got it!" They ask for advice, try things out, consult experts and amateurs, always looking for a better, faster, cheaper solution. Successful people create stuff!

6. They are self-reliant and take responsibility. Incredibly successful people don’t worry about blame, and they don’t waste time complaining. They make decisions and move on. Sometimes they are criticized for taking this to extremes – Jimmy Carter carried his own briefcase and a President "shouldn’t" do that! Extremely successful people take the initiative and accept the responsibilities of success.

7. They are usually relaxed and keep their perspective. Even in times of stress or turmoil, highly successful people keep their balance, they know the value of timing, humor, and patience. They rarely panic or make decisions on impulse. Unusually successful people breath easily, ask the right questions, and make sound decisions, even in a crisis.

8. Extremely successful people live in the present moment. They know that "Now" is the only time they can control. They have a "gift" for looking people in the eye, listening to what is being said, enjoying a meal or fine wine, music or playing with a child. They never seem rushed, and they get a lot done! They take full advantage of each day. Successful people don’t waste time, they use it!

9. They "look over the horizon" to see the future. They observe trends, notice changes, see shifts, and hear the nuances that others miss. A basketball player wearing Nikes is trivial, the neighbor kid wearing them is interesting, your own teenager demanding them is an investment opportunity! Extremely successful people live in the present, with one eye on the future!

10. Repeatedly successful people respond instantly! When an investment isn’t working out, they sell. When they see an opportunity, they make the call. If an important relationship is cooling down, they take time to renew it. When technology or a new competitor or a change in the economic situation requires an adjustment, they are the first and quickest to respond.

These traits work together in combination, giving repeatedly successful people a huge advantage. Because they are insatiable learners, they can respond wisely to change. Because their personal relationships are strong, they have good advisors, and a reserve of goodwill when things go bad. And finally, none of these traits are genetic! They can be learned! They are free and they are skills you can use. Start now!

Perseverance is the Key to Success

Perseverance is the key to success. After thousands of efforts to make the electric light bulb, Thomas Edison said, “I haven’t failed, I’ve identified 10,000 ways that it doesn’t work.”

Acquiring a desired job or promotion, or succeeding at business may present difficulties. But this is part of the learning process. Ultimately, people who persevere become successful. They learn from mistakes.

Do you persevere? Or, after meeting rejection or difficulties, do you quit?

Test Your Perseverance Quotient
Rate yourself – on a scale of one to three, one being low and three being high – on each of the following:

1. I believe in myself.

2. I have clear career goals.

3. I address my limitations.

4. I bounce back from disappointment.

5. I have the stamina to persist.

6. My family and friends support me in my pursuit of goals.

7. I can adapt to change.

8. I focus and complete projects.

9. My goals are consistent with my purpose and values.

10. I can take unpopular actions when I believe I’m right.

Add your scores. The higher your score, the more persevering you are.

Tips for Persevering

1. Clarify your goal. Base it on your mission/passion, needs and abilities. Know why you want your goal and how you and others will benefit.

State your goal in the present. Write desired outcomes, what you want to accomplish. Be detailed, specific, positive.

2. Intend to achieve you goal. Outline goal, strategies and time line. Know resources that can help you attain your goal, such as people, associations and the Internet. Break the goal into small steps, working backward form your desired outcome and achievement date.

3. Develop support systems. Meet regularly with positive, encouraging people who support your goals and celebrate your achievements. Select other sources of positive reinforcement such as books or tapes with uplifting themes.

4. Choose productive attitudes and behaviors. Don’t dwell in the past, worry about what might happen or view yourself as a victim.

Maintain optimism. Reinforce the positive in yourself and others. Expect good things. Watch self-talk. Replace negative thoughts or statements with positive ones. Keep a diary of each day’s good experiences.

Focus on what you can do. Acknowledge your accomplishments. Judge your accomplishments against personal standards of self-improvements.

Have the courage of your convictions. Don’t change for others or compare yourself with others.

5. Develop the will to risk. Don’t fear mistakes. Ask: ‘What’s the worst that can happen?’ Decide whether you could live with the worst or take steps to reduce the chance of it happening.

Research your goal to reduce negative outcomes. For example, interview successful people who have achieved similar goals. Learn from their mistakes.

Live in the present. Don’t worry about what might happen. View mistakes as opportunities to grow.

Let go of attachments. The more attached you are to something, the greater the fear of losing it.

6. Maintain a healthy lifestyle. Care for you mind, body, emotions and spirit. Schedule quiet times to think and reassess. Practice stress relievers such as deep breathing, exercise, meditation. Get sufficient sleep, eat healthy. Take time for fun and friends.

7. Practice imagery. Imagine yourself living your goal today. Hold your desired outcome firmly in your mind. See, smell, touch and hear aspects of your goal. Each morning upon rising, review your goal. Repeat the process at night.

8. Persist. Focus on goals daily. With every “no” of defeat you’re closer to a “yes” of success. If you learn from set-backs and stay on course, success will follow. Every day, at regular intervals, ask yourself whether your activities are helping you attain your goal.

Believe you’ll attain your goal. Persevere. When your mind, emotions and activities focus on your goal, you can achieve the extraordinary.

" Don't be afraid to give your best to what seemingly are small jobs. Every time you conquer one it makes you that much stronger. If you do the little jobs well, the big ones will tend to take care of themselves." ~Dale Carnegie

sources:

http://www.quotegarden.com/perseverance.html
http://www.investopedia.com/artic