MY MONEY STORY

Making Good Music

By Jaya as told to J. Randell Tiongson

Photos by Jun Navarro

People say that you are what you are because of your surroundings and your situations and I agree. When you are exposed to a negative environment, I believe there are two things that can happen – you can be crippled by it, or you overcome it; I chose the later.

Because I have a celebrity mother (Elizabeth Ramsey), many assume that I was raised in a life of plenty, a life of luxury – how I wish! In reality, I only experienced a life of financial prosperity much later in life. I have no qualms about my life growing up; my mother raised us the best as she could, something I will forever be grateful for. However, I was exposed to the realities of life at a very young age. I learned early on that if I want a better life, I need to work hard and be prudent. In my industry, money can easily be earned but unfortunately, it can also be easily lost. I have seen too many people in my environment reach a peak in their careers then wallow in financial difficulties short after. However, I am also encouraged by so many in the entertainment industry today becoming more financially responsible and manage their earnings well.

I believe in investing and I believe that I invested where it matters most, my craft. I am very passionate about music and I will always be an artist. Competition in our industry is fierce; today’s rising start can be tomorrow’s fallen star – as fast as one rises can be as fast as one getting lost in obscurity. I constantly improve my craft, study, practice, and learn from others. Regine Velasquez is my role model for her artistry – how she is so dedicated to our craft and how she reinvents herself periodically. For an artist like me, this is the sort of investment that I should focus on lest I will find myself wondering what went wrong in my career.

There are many things that I am thankful for the Lord – a God-given talent that has brought me where I am now. I am not saying that I have already reached a life of unimagined wealth but I can say that I am happy with what I already have. It is important that we know what we want and level of satisfaction we should attain. I wouldn’t want to be lost in my quest for my aspirations; I know there are more important things in my life like my relationships and my family.

Financially speaking, I must admit that I am not that savvy. I have simple views in the handling of my finances. I understand that the key to prosperity is keeping a healthy cash flow. I always moderate my spending and I purposely avoid extravagance even if at times I can afford it. I don’t think I will last this long in a very competitive industry and I understand that artists come and go and no amount of talent will guarantee that you will be where you are indefinitely.

Thankful for blessings

I am blessed that through the years, Filipinos still like me and my music. It’s by God’s wonderful grace that I am where I am right now. I am likewise blessed that my husband (Gary Gotidoc) helps me stay rooted with reality and I learn so much of practical living from him. My union with my husband allowed me to learn so much about proper financial management as my father-in-law has been mentoring us with the rudiments of money management. My husband and I relish what we learn from him in the area of finances and investments.

We believe in investing in real assets such as land but we also believe in keeping an adequate liquid position, one can never tell if there will be a financial emergency. Further, opportunities are always present for those who have ample cash. Also, it is prudent that we also have other sources of income such as business ventures. It is the combination of many things that will allow us to live a life of adequacy.

I will continue honing my craft for as long as I can but I am now preparing a life of sufficiency even without my singing career. It is still a long way to go but I choose to prepare for it day by day and well ahead of time.

My past, though impoverished, prepared me and molded me. Negative experiences are part of our lives. I just chose to learn from it and not to scar me.

* Jaya is a multi-awarded singer. She is a mainstay of the highly rating GMA shows such as SOP and All Star K. She is happily married to Gary Gotidoc and the mother of Sabriya and another baby soon. She is set to release her 11th album under GMA Records. Jaya is also part-owner of the hip place Barracks along Tomas Morato Ave in Quezon City.

[Sidebar]

MY MONEY LESSONS

Money philosophy

Jaya has had great success in the entertainment industry. But her background, experience, and lessons from her husband and father-in-law have taught her a practical view of finances. Here are some things she has learned:

1. Don’t buy anything that will require you to pay for a very long period. As I said earlier, one can never be sure how long we will be “marketable” in this industry. If I get a long-term obligation to purchase an asset, there is a good chance that I may not have a sustainable income to pay for such an obligation. When I borrowed for a property I acquired before, my loan was originally a 10-year term. However, I was able to pay it off in just three years because I was deliberate in terminating my obligation much earlier. I don’t know if I will be earning the same income through the years so I made sure that I will not have obligation when the time comes. As a personal rule, I will only get into an obligation with a maximum of two years only. If I can’t afford to pay it in two years or less, I will not make the purchase.

1)      Don’t follow the hype. My environment can be crazy with fads and trends. We are expected to be trendsetters and there is a ridiculous pressure on us to keep up. Most of the trends in my world are costly – jewelry, ultra-expensive bags, SUVs, extravagant vacations, posh homes, etc. I made a resolution early in my career that I will not bow down to such pressures. I am not bothered if people around me will think that I am not up to date with the latest trends. I’m an artist; my craft is my true possession and not what I own. I know that if I succumb to the pressures of trends and hype, I will regret it financially. My feet are planted on the ground; I do not entertain illusions of having the same lifestyle of the rich and famous.

2)      Do not live beyond your means. It may be cliché to a lot of people but I sincerely follow this very wise philosophy. Spending more than what you earn is a recipe for financial disaster and I have made a personal vow that I will avoid experiencing a life of financial ruin. It is easy to be tempted to be extravagant especially in my environment but I also know that such temptations will only cause grief and regret later. While I do not advocate living like a miser, I know that quality of life is not dictated by what we can purchase.

MY MONEY STORY

Building through Moving
How this promdi made it big in business
By Paulo M. Tibig as told to J. Randell Tiongson

I have been introduced as a promdi making it big. I hail from Bataan and took up my college degree here in Manila with big dreams. I have always been steadfast in my aspirations even if things do not necessarily go as I plan.

After college, I worked hard and literally started from the bottom, something that prepared me to the challenges of professional life. Life was not always easy for someone like me. Like many of us, I went through the difficulties of making ends meet but I was persistent even if things were not always as clear to me at the onset of my professional life.

There were also times when I thought that I will stick to the corporate life but there was always that yearning for something more. After college, I ended up working as an employee in large corporations and even dabbled in selling insurance for a leading Canadian insurer. However, my entrepreneurial spirit was always tugging at me. My father was an entrepreneur (an LPG dealership) so going into business was always an option for me.

When my father became ill, circumstances forced me to resign from my corporate job. Being the eldest, I needed to help take care of my father. I took this time to explore the possibilities of being in business.

First step
I used to live in an area in Quiapo, Manila where the student population was very dense. Together with my girlfriend (now my wife), we thought it would be a good idea to establish a laundry shop to cater to the residents of the area. My partner was still an employee of a leading multinational consumer firm but she shared my passion for enterprise. Our first venture into business did not really yield us the desired results we originally intended. Water was a problem in the area while margins were slim due to the limited income of our targeted clients. However, that experience taught us the rudiments of going into business and we built on from the mistakes we experienced.

I knew that the laundry business was just a first step for us and we were further exploring other opportunities. My wife’s work was a good learning experience for us and opened a door for us in the arena of logistics. With keen observation and a more deliberate plan, we entered the world of logistics which also meant that my wife would leave the corporate world too. My future mother-in-law was kind enough to lend us our seed money and we were on our way. With just P100,000, a good business plan, and a lot of passion, we established Vintel Logistics in 1999.

Ten years after, we have re-branded Vintel Logistics into V Cargo, one of the country’s largest logistics and cargo companies today. We pride ourselves as a company big enough to have the efficiencies of a multinational cargo corporation, yet small enough to be flexible for our clients demanding needs. With a client base composed of the leading corporations of the country, V Cargo is gleaming with pride of its accomplishments while looking forward to more value added services that will increase our market share.

I have often asked how a probinsyano like me made it in the highly competitive and quite vicious business world. I would often say that it all starts with a dream, fueled by passion, and nourished by deliberate industriousness. I have molded my organization to embrace excellence in everything we do, be it professionally or personally. Even when we were still a small company, we always run it like a “big” company – deliberate, efficient, organized, and most importantly, highly professionalized. As the captain of my ship, I subscribe to lofty leadership ideals and have never compromised my values even if it wasn’t always practical. Judging from where V Cargo is right now, I would like to believe that I did things right and I will continue to do things right.

The current crisis did not dampen my hopes. I am still hopeful for growth and I am confident that V Cargo will not only survive in these trying times, but will actually thrive. Some people felt that our expansion programs for V Cargo are ill-timed, but I beg to differ – I believe it is perfectly timed. Our programs for V Cargo are to further strengthen our competencies, improve efficiencies while being creative with our marketing endeavors. I believe that our company, with our emphasis on creating value for our clients, will mean growth even in our challenging situation.

Handling money
Unlike most businessmen, I prefer to have a low key and simple personal life. My wife and I have agreed that we will not raise our children in an opulent environment and that we will be deliberate in teaching them good values and in being industrious. We continue to live a life free of debt, both for our company and our personal affairs. We run our corporate finances the same manner we run our personal finances. We always maintain a healthy cash flow and we never spend more than what we earn. In fact, we have been very conscious in the way we expend money. Growth in income does not necessarily mean a proportionate growth in expenses.

One of the things we decided on was to separate business money from personal accounts, even when our company was still very small. At the onset, most of the income generated by the company was being plowed back to business for operations and infrastructure. When the business began to generate comfortable surplus, we started to build on our personal wealth. I know that I will not be in business for a long time so I will need to live on whatever I store up. In fact, my wife has already distanced herself from the business, choosing to spend her time as a dutiful wife and mother to our kids – something that I am actually very thankful for.

I would like to say that what we’ve stored may not be much compared to others, but it is enough for us. Should I decided to stop working, I believe that we can already live on what we have set aside. We initially just tucked away money in savings and time deposits because we believe that we can’t tolerate any capital risks for our money. I take risks for the business, but I prefer not to take unnecessary risks for our personal wealth. While we will not complain to receiving higher yields for our investments, we’ve decided not to sacrifice yields for risks.

My wife has taken charge of managing our personal accounts and she has started to diversify in terms of investments. We’ve recently hired a personal financial planner to help guide us through proper money management but we are still in control of our finances. Despite the successes the Lord has blessed me and my family, I don’t intend to change the way we live our simple lives. Next to God, nothing is more important to me than my family. Money and the business are just a means for me to live a good life with the people who mean the most to me.

I will soon hit 40 years and I am preparing for bigger challenges. However, I am happy with what I have already been blessed with. This is my story.

[sidebar]

My Money Lessons
Paulo Tibig, president and CEO of V Cargo, a leading logistics and cargo company, learned business and money lessons the hard way:

1. Learn from your mistakes. Paulo started a small laundry shop with a partner, which eventually closed shop. But he used that experience to make a more solid plan for his next business, what is now a major logistics and cargo firm.
2. Act big. From the onset, Paolo ran V Cargo as if it’s a large corporation, by making it professional, efficient, and organized.
3. Separate business and personal accounts. Even when the business was still small, Paolo and his wife made sure that their personal finances don’t get mixed up with business income, allowing them to plow back what their company earns to the corporate coffers. Although they apply similar principles of spending less than what they earn for both their company personal lives, they don’t take unnecessary risks with their investments the same way they take more risks with their business.

MY MONEY STORY

My Waddage
A former employee savors freedom and fulfillment through a terrific partnership
By Katia Quirolgico as told to Regina G. Posadas

After graduating from the Ateneo de Manila University, I worked in a bank for eight months. But I realized that it wasn’t what I wanted to do. I proceeded to work in an advertising agency and loved it. I stayed in the industry, and toiled in different ad agencies for the next 11 years.

After more than a decade, I wanted to slow down a bit because advertising can be very tiring. Plus, it was also a dream to put up my own business. At that time though, I wasn’t entirely sure what type of business to embark on.

Getting my feet wet
Originally, I set up a business connected to retail – supplying for a direct marketing company. I soon realized however that it was not as rewarding as I initially thought it would be. My savings was also at its lowest then, and I was already panicking. So after a year, I went back to being an employee. I needed to recover financially. It was in my next workplace that I met my business partner, Ben. The two of us currently run Waddage, our own advertising agency.

Ben and I shared the same sentiments. Moreover, he had been in the same industry as long as I had, and we both had individual strengths that would complement one another superbly. If we combined our talents, Advertising and Communications would be the best choice for business.

I knew I didn’t want to be an employee again for the next 11 years, but I also knew that if I set up another business, it had to work already. No room for errors anymore.

Back in business
I ventured into entrepreneurship again in 2004. We originally set up the agency with partners, Ben and I being the minority. Of course there were birth pains and problems, such as finding the right partners. Eventually, Ben and I had a falling out with our associates. And after almost three years of working together, we decided to be independent.

This agency – Waddage – is now owned by Ben and myself. It was established in 2007 and is a corporation. Majority is Ben and me, with some of our trusted staff filling in as the required five incorporators. Financially, Ben put in more money in the agency than I did.

Our very first problem was getting clients. And this is where contacts came into play. Contacts from school, previous offices, relations, etc. all helped. I believe securing clients will always necessitate effort. Even so, I don’t call it a problem. Securing clients, like in all businesses, is always an objective.

Financially, the difficulty is the cash position. Our work requires the company to advance expenses to get the projects going, over and above the staff salary which always has to be paid on time. This was a problem at the beginning, but things get better as you progress.

Savoring success
The best part of being an entrepreneur is the freedom you have in running things. And your accountability is to yourself. Also, you don’t have to fear what your boss will say and how it will affect your evaluation.

I have absolutely no complaints [with the way things are going]. Admittedly, it is very tough with growing competition from other agencies and decreasing advertising and promotional budgets. Nevertheless, it is rewarding. There is a feeling of accomplishment, knowing that you are able to help people by giving them jobs and of course, the business rewards you financially.

Last year, 2008, was a good year for Waddage and the plan is to do better year after year. In terms of long term strategizing, we plan to grow the business but only up to a size that is comfortable to manage.

Business-wise, yes, I think I am money-wise. On our second year, we managed to pay all our loans, and our cash position has not been a problem anymore. It’s different when it comes to my own funds. Personally, I think I am not as prudent. I like to shop. Let’s leave it at that.

Advice from an advertiser
Being an entrepreneur takes a lot of determination and guts. My advice is to never give up and to always go forward. It also requires some sacrifices. If the company does well, we (the owners) are to benefit the most; but if it does not do too well, we are also the first to sacrifice and to suffer.

I have no regrets at all about my decisions. I believe in perfect timing. If things do not work out despite the fact that you’ve done your best, maybe it is not yet the proper time.

It is very important that you enter [a business] having the right mindset. Financially, there is a big difference between receiving a monthly salary and being uncertain [about your income] every month. There will be very good times, just okay times, and bad months. But I guess the best part of it is having the freedom to do and implement what is best.

[sidebar]

My Money Lessons
Advertising entrepreneur Katia Quirolgico shares the highs and lows of owning your own business:

1. Find the right partners. After setting up an ad agency, Katia had a falling out with her partners. Thankfully, she got along well with her original business partner, Ben, and both started Waddage.

2. Manage cash flow. The startup stage in any business is the most critical, as running out money is always a risk. Katia and her team stuck it out, growing the company at a comfortable level. By the second year, they were able to pay off their loans and things went smoothly thereafter.

3. Make some sacrifices. Katia realized being your own boss requires sacrifices – financial and otherwise. But with guts and determination, they will pay off someday. The freedom that comes with the territory is worth it.

MY MONEY STORY

Finding Life’s Purpose under the Bridge
How extreme poverty taught this successful entrepreneur to reach for his dreams
By Bonnie C. Apelado Jr. as told to Excel V. Dyquiangco

Living under the bridge in Pildera 2 in Pasay City near the NAIA airport was what I called home when I was growing up. Even when I really wanted to escape this sad reality, there was nothing more I could do. My parents weren’t earning so much – my father sold coffee in a market in Baclaran and my mother was a street sweeper.

I, on the other hand, just decided to help them out by doing various jobs, hoping that we all could get out of this situation eventually. Selling newspapers, cigarettes, balut, and palamig in the streets and washing cars and being a sidecar boy were the things that provided for me allowance in school.

I would also spend time at the airport to ask foreigners or locals arriving in Manila for money. This was the easiest job I had so far but also the most dangerous one, since when you get caught by the police, you could be assaulted and end up in jail. Thankfully, that never happened to me. And when I realized how grave this situation could be, I tended to my other “work” – selling balut in the evening while studying during the day.

At that time, I had thought life was all about living under the bridge. Life was about a series of events that would take you out of bed, eat a little, study and work, and then go back to our little house and sleep – activities that I considered routine. I had thought that life was all about waking up early each day to do what you are supposed to do. It wasn’t until I was in fourth year high school that I found significance and meaning.

A group of young people visited us in our school, Pasay City West High School, and they gathered us together during break time to conduct a Bible study. The leader of that Bible study taught us about Christ and our dreams, and they told us that with God, you can change and that your life can have meaning and direction. It was there when it all started – I accepted Christ as my personal Lord and Savior and I become a member of that church. I learned how to dream and to have an ambition. It’s indeed true that once you put your mind to something and when you work hard for your goals, your life can change. I never once gave up on my life and my dreams.

A steady rise
I juggled work and school back in 1991 – as a janitor for Manila Refrigeration and Airconditioning System in the morning and as a college student at night. The company saw how efficient and hardworking I was so they promoted me to become one of their sales representatives. Imagine that – from a janitor to a sales rep!
At that time, there was a huge demand for airconditioning systems and the company eventually became a major player in the industry. I even became one of their best sales representatives.

After working for 11 years with the company, I began thinking of putting up my own business. During that time, the company wasn’t doing too well already, so my wife and I decided to just resign from our jobs to start our own small store. But the problem was we didn’t have enough capital, aside from the SSS loan and the commission I got as a sales rep. In the end, our starting capital was P25,000 – the P15,000 went to the rent and the down payment of the space. And we bought goods to sell (novelty and gift items) with the rest of the money.

At the onset, the shop was doing well but after the Christmas season had passed, we were having a hard time earning profits. During that time, the cell phone repair business was also booming so my brother-in-law and I decided to enroll for training.

This was the start of everything. We renovated the gift store and transformed it into a cell phone repair shop, where we also sold cell phone accessories. Soon our business expanded, and we became famous here in our place in Malibay. When this happened, I began to realize that having my business is not just about selling stuff and goods – it’s about opening your doors to new opportunities and challenges.

The dreams are now turning into reality – little by little. Now we have five stores. We don’t live under the bridge anymore. Instead, we were able to buy a house in Cavite, a car, and three motorcycles. These are all the fruit of perseverance, hard work, and determination.

Good working relationship
It’s not easy to start a new business – all kinds of fears and apprehensions envelope me. Fear such as “what if the business goes bankrupt” or “what if it won’t sell” has hounded me. But by God’s grace, we overcame these fears by thinking positively and working productively.

I take pride in a good working relationship with my customers, and this was what probably saved me from what I consider my greatest challenge yet. Two kids broke into our store and took hold of almost everything – cell phones, MP4s, and PSP units that were quite expensive. When my customers heard of what we went through, they were even the ones who investigated the burglary. In the end, they were able to corner the two kids. And everything that was stolen from us was also returned. Now, I’m teaching the kids the Word of God, changing their lives in the process.

I no longer live under the bridge anymore but this was a humbling experience that has molded my character and changed my perspectives in life.

[SIDEBAR]
MY Money Lessons
From living under the bridge to become a successful entrepreneur, Bonnie Apelado has learned some hard life lessons along the way:

1. Your past is not an excuse. I have learned that in life, you can change your destiny no matter how unpleasant it is. Poverty is never an excuse for a life that is less fulfilling. When you dream and then you work hard for it, you will eventually succeed. I attributed all of these happenings in my life to God and to His Word who serves as my guide and ultimate encouragement.

2. Successful people set goals and stick to them no matter what. I have also learned that business people who succeed in life share the following – dreams and goals, determination, courage, discipline, and faith.

3. Give back and share your blessings. My mission in life is simple and that in the success of my business, let God, my family and my relatives be the beneficiaries. My vision is that to enjoy more of God’s blessings and to become a more successful entrepreneur and always enjoy serving Our Creator.

MY MONEY STORY

The Coach’s Playbook

The popular basketball coach shares life and money skills

By Vicente “Chot” Reyes as told to Tina Arceo-Dumlao

It’s not easy being a professional basketball coach. Aside from motivating big and tall players to give their all, night after night, to chalk up a win for the team, you end up setting some of them aside to give them a pep talk on life, love and, sometimes, money.

Perhaps it is because we are together so much and go through the agony of defeat and the thrill of victory that we become a band of brothers, not unlike soldiers. And I, as their coach, am often asked for advice even outside the hard court.

When they ask me about what to do with their money, the first thing I tell my players, at least those who are interested, is that they should learn to work within a budget. It sounds fundamental and very basic, but you will be surprised at how many of the players do not know the value of working within a certain amount so that there would be enough for all the essentials, like food, shelter, education and, more importantly, savings. Some have not even heard of the concept.

I try to impress upon them the importance of having a budget because I do not want them to end up like so many others before them who once had a lot of money on their hands, only to lose it all after they hang up their jerseys.

I do understand why it is very difficult for many of these players to work within the confines of a strict budget and to live within their means because many of them came from very modest backgrounds. Since they had very little growing up, they do not know exactly what to do when they suddenly earn about P150,000 a month as a top-quality professional basketball player in the Philippine Basketball Association.

Many of them end up buying non-essentials like the latest model car. They do not even think of buying a house yet at the start maybe because they are not yet earning enough. The car is almost always the first thing they buy, which I think is also understandable because they no longer want to take public transport.

The danger though is in buying one expensive thing after another, those they do not really need like jewelry or designer watches, thinking that the money will never end, and that they will always earn what they are earning.

I try to tell them that they will not be in basketball for many years, especially with competition, the prospect of injuries and the very real possibility of being cut from the team when a better and younger player comes along. No one stays at the top of their game forever.

I also tell them to be wary of those who are just hanging around them because they feel that they can get a piece of their resources. Over the years, I have seen players who are faced with relatives, friends, and groupies who suddenly surfaced just because they have money. But to their credit, the players almost always take care of their families. If nothing else, they will make sure that they are provided for – education, shelter, and altogether better living conditions.
They can do more with their money though. This is why many teams invite speakers from insurance companies or real estate brokers to talk to the players – especially the veterans – about what else they can do with their money so they will not spend all of them.

The talks are very informal and with no strings attached. Our idea is to at least give the players an idea of the many possibilities open to them, that they must take advantage of opportunities while they are still earning well. I am happy that many of the players I have coached over the years have been good with their money, so good that they may no longer be professional basketball players but are still earning more than a decent income.

These are players like Jojo Lastimosa, Glenn Capacio, Alvin Patrimonio, and Jerry Codiñera who have long left the PBA but are still cashing in on what they have saved up and invested in during their playing years.
Some of them bought pieces of property. Others went into business while others just saved up because they never lived beyond their means. They did not commit the same mistakes as the others, like buying big houses or expensive cars that they really cannot afford.

Practicing what I preach

I do practice what I preach although I must admit that I have learned through trial and error with the help of my wife, Cherry. But just like I tell my players, we do work within a budget and we do live within our means. That is why we decided, for instance, against splurging on a big house. We still live in our townhouse but it works for us.

We also have a little set aside and have investments in some instruments. But one thing for sure is that we are well insured and we do have a good pension plan so that we won’t be a burden to our four children. We make sure that our retirement money is out of the way.
We are very hands-on in our approach to investments, which is why we do not put our money in trust funds or hedge funds, although we really do not have too much to put in those instruments.

What we have, we invest in our business, which is Essensuals Tony and Guy. We already have three branches and that is where our money is going. I also do not have too much money saved up for the children because I believe that is the surest way to making them lazy, especially since we have three boys. Aside from education and maybe a little something for them, we do not want to leave them with too much. They will have to work for their fortune themselves.
But what we do spend a lot on are vacations and travel together. Those are investments that will not give us any financial return but they are still investments that are truly worth making.

MY MONEY LESSONS

How to Play the Money Game

Chot Reyes teaches his players not only basketball skills but important life skills, including how to handle their money.

1. Start with the basics. The first thing Chot teaches about money is to work within a budget and live within one’s means. It may be very basic but a lot of people don’t even know this fundamental concept.

2. Save for a rainy day. Basketball players may be earning a lot of money in their prime but Chot warns no one stays at the top of their game forever. It applies to any other career. So don’t waste your income on expensive stuff. It’s okay to enjoy your money and especially to help your family but just make sure you save and invest wisely.

3. Make good investments. One good way to augment your income and transition to a new career is to start a business. Chot owns three branches of Essensuals Tony and Guy and takes his hat off to some veteran basketball players who have become entrepreneurs. Invest in real estate and education, and most importantly, invest your time with your family because that’s what truly matters.