The Secret to Saving and

Building Your Future

Become Your Own Financial Educator!

INTERNATIONAL MARKETING GROUP

The Secret to Saving and Building Your Future
Become Your Own Financial Educator!

Copyright © 2017 by IMG Corp.

Published by IMG Corp.

All rights reserved. No part of this book may be reproduced

in any form or by any means without prior permission of the
publisher.
 Foreword

Does money control you? Or do you control money?

Every day people go to work to make a living, but no matter
how hard we work and how much we earn, money always
seems to control us.

So many people are in debt. In rich and in poor

countries, debt has become a way of life for many people
throughout the world. We don’t have much, and we don’t
know much. Nobody teaches us how to manage our money in
school.

Financial issues are not often discussed, and financial

products not always explained. Even though the financial
industry is one of the largest industries in the world, and
even though we are flooded with financial news and
websites, financial literacy is as confusing as ever.

Most people have trouble balancing their budget or

reading a financial statement. We use credit cards and don’t
always understand all the hidden charges. We want to have
good health care and save for our retirement, but many of
us do not have a plan.

We need to change, but we need understanding first.

This book is helpful for people who want to move from
financial insecurity to financial security. It is the first step
toward a better financial future and possibly becoming
financially independent.

3
Foreword

By becoming your own money manager, you’ll

discover that it’s doable to understand, plan, and build a
financial foundation for your family.

You can do it. You can control your future.

Xuan Nguyen
World System Builder

4
This Book Will Upgrade Your
Financial Life

One day, I was on the plane seated in economy when

the stewardess came up to me and said, “Sir, can I request
you to move up to business class?”

“Oh gee, if you insist...” pretending I was

exasperated, but laughing out loud right after. She chuckled
as I picked up my stuff and followed her to the front section.

As I got comfortable in my seat, the large man beside

me introduced himself and said, “Brother Bo, I read your
book, Simplify and Create Abundance. It was very good. My
name is Joen and I’m also a financial educator.”

“Wow, thanks,” I said.

Joen said, “Can I share some more insights with you?”

“Sure,” I said.

He pulled out a piece of paper and started doodling

very simple yet powerful financial concepts. And what he
shared with me that day blew my mind. I realized he was
just being polite when he asked, “Can I share some more
insights with you?” He probably wanted to say, “You know
nothing yet, kid. You’re just scratching the surface...”

That day, I got upgraded in my financial wisdom. That

happened in 2005, when I was very new in my financial
journey. Since then, I’ve been blessed by my friendship with
5
Foreword

Joen de las Peñas, Noel Arandilla, and Bart Borja, founders

of the International Marketing Group. What do I love most
about these guys? Their hearts burn with missionary zeal.
They’re multimillionaires many times over, CEO’s of global
businesses with a salesforce numbering in the thousands. Yet
many times, you still find them talking one-on-one with
market vendors, tricycle drivers, janitors, and clerks—
helping them to take the first steps out of debt and into
financial freedom. Joen, Noel, and Bart just love people.

Friend, this book is your ticket to upgrading your

financial life. Read it, devour it, and share it with people
who need a financial revolution in their life.

May your dreams come true,

Bo Sanchez

6
 DEDICATION

This book is dedicated to every person who

wants to take charge of his or her future.

We’re committed to educating more than one

million families by 2020.

7
 TABLE OF CONTENTS

INTRODUCTION 11

Chapter 1 Getting to Know the Basic Financial Concepts 17

Chapter 2 Choosing the Right Healthcare 33

Chapter 3 Understanding the Purpose of Insurance 37

Chapter 4 Managing Debts Effectively 53

Chapter 5 Building an Emergency Fund 59

Chapter 6 Saving the Right Way 61

Chapter 7 Growing Wealth through Investments 73

Chapter 8 Understanding Retirement & Estate Planning 85

Chapter 9 Empowering Filipinos through Financial Education

An interview with Dr. Joen delas Peñas,
President & Chairman of the Board
of International Marketing Group (IMG)
Insurance Brokers, Corp. 91

CONCLUSION: Invest in Your Future 97

FAQs 101

9
 DISCLAIMER
The purpose of this book is to provide general
understanding about financial concepts and information.
The contents of this book are intended for information
purposes and reference only and without consideration given
to the specific objectives and particular needs of a particular
person. It is not intended to give advice on tax, insurance,
investment, or any product or service nor is any
representation made that any products or services referred
to or discussed on this book are suitable for any particular
person. Since each reader has a unique situation, everyone
should have all the appropriate information to understand
and make the right decision to fit their unique needs and
financial goals. Let this book be a starting guide and
reference as each person navigates his way towards financial
security and freedom. We hope that all who read this book
will succeed in building their financial future.

The author and all other persons associated with the

book took all reasonable steps to ensure that all information
included in the book is correct and believe that the
information provided is correct at the date of publication.
However, no warranty or guarantee as to the correctness and
completeness of material on this book is made. The author
and all other persons associated with this book expressly
disclaim liability for errors or omissions in such information.

Neither the author nor any other person associated

with this book may be held liable or responsible for any kind
of loss or damage that may result from the use of the
contents of this book or to acts or omissions made by any
person on the basis of the contents of this book.

10
 INTRODUCTION

When it comes to securing and saving their future,

many good people fail. Many hard-working people fail. Many
smart people fail. Many young people fail. Many old people
fail. Many teachers fail. Many engineers and doctors fail.
Many end up retiring without enough savings.

These people don’t set out to fail. They do because

they fail to plan and manage their personal finances.

They lack financial education.

Prevailing Mindsets About Money

Many people believe that financial education is only

for the wealthy.

Many think that the only solution to financial

challenges is to borrow money.

Some say that because they are poor, they don’t need
to save.

Many Overseas Filipino Workers (OFWs) work hard for

years and still end up retiring poor. OFWs are heroes who
sacrifice a lot just to be able to send money and gifts to their
families back home. In many cases, the families take for
granted just how hard it is for an OFW to earn the money
they remit. The families do not know that many OFWs send
balikbayan boxes filled with brand-new clothes and shoes
that they themselves do not have.
11
Introduction

You also hear stories of OFWs investing in businesses

for their families in the Philippines to manage. For example,
providing money to set up a transportation business, like a
car or a jeepney. When it is time to replace the tires of the
vehicle, the business cannot pay for it. The family instead,
depends on the OFW to pay for the tires. Sa kanya na ang
kapital, sa kanya pa rin ang gastos.

So it is a reality that many OFWs who work for 20 to

30 years still end up retiring poor.

Are you an employee? If you are, think of the millions

of pesos that actually passed through your hands in the last
20 to 30 years. Every year, you get your 13th month. But
can you tell yourself exactly what happened to your 13th
month in the past 5 years? Very rarely can people say how
and where they put their money. Often, no one can really
remember.

Did you know that the Philippines is one of the few

countries that has the 13th month pay? Our foreign
friends get confused when they hear it for the first time.
They wonder how we can have a 13th month salary when
there’s only 12 months in a year. For employees, the 13th
month is really a guaranteed bonus.

If you save your 13th month for just 6 years, then

based on the power of compound interest, you could already
have close to 10 million pesos in savings and investments in
the next 40 years. If you sacrifice for 6 years, you could
already change your life.

12
 The Secret to Saving and Building Your Future

The Urgent Need for Financial Education

Lack of knowledge and understanding about personal

finance is causing a lot of Filipinos to lose money and retire
poor. It’s also destroying relationships. Statistics show that
90% of marriages are broken because of a financial problem.

We at IMG want to prevent all these from happening.

We want to change this.

Through this book, we want to educate millions of

Filipinos to create wealth for their families and build a good
future through financial education.

There is “saving the right way” and then there is

“saving the wrong way.” Many people do not realize it but
they might have been saving the wrong way all along. This
book will show you how to do it right.

Everyone Deserves to Be Educated

The difference between wealthy people and average

people is that the former takes the time to invest in knowing
how money works. We believe that the poor or average
person also has the right to become wealthy with the proper
information and guidance.

Financial education is the key to saving a person’s

future. However, many think that it’s only for the rich, that
only they deserve financial education.

13
Introduction

One time, we talked to a banker and asked these

questions:

How come when a person is wealthy and has a lot of

money, they are given a preferred rate?

When a person is working in the mining industry

where his or her life is often at risk, why do you give that
person a low rate? Isn’t it that the money of the wealthy
and average have the same color?

Why would you give different rates?

This was the banker’s response:

It’s not my fault. The depositors were the ones who

were willing to open an account in that bank and they knew
beforehand the interest rate. It was clearly mentioned.

The fact is that they got in and opened an account

without understanding the effects of compound interest.
This clearly shows that the financial industry is not doing its
job to educate people.

Through this book, we can help the financial industry

educate Filipinos on a massive scale.

Our Mission

Our journey as financial educators started when we

realized the importance of having the right financial
products and solutions that we can apply in our own lives.
We also found out that our families and friends needed to
know the same information. With proper knowledge,
14
 The Secret to Saving and Building Your Future

everyone can make the right decisions, take action, and

achieve the desired results.

The secrets we learned in creating wealth for our

families, we also shared to our friends. Eventually, we
realized that everyone needed to know about how to save
the right way.

Our goal is to make financial education available to

everyone, regardless of status and professional background.
In this book, we will share with you a financial planning
strategy that is simple, clear, doable, and easy to
understand.

We want the book’s message to enable and inspire all

Filipinos to become wealthy. We want to make sure that NO
FAMILY IS LEFT BEHIND when it comes to saving their future
through financial education.

Financial Education Made Easy

There is a saying, “Plant what you want to harvest. If

you want to harvest mangoes, plant mango trees, if you want
to harvest tomatoes, plant tomatoes. However, if you want
to harvest money, then learn to plant money.”

We want to inspire you to become your own financial

educator. Thus, we removed the complexities and made the
basic financial concepts in this book simple and easy to
understand.

You must be educated about personal finances so you

can decide for yourself what you need. When you are
equipped with knowledge, no salesman can offer you any
15
Introduction

complicated, over-priced, or undervalued financial

products.

Ultimately, what we hope for is that through financial

education, you will buy and own a product because you
understand its purpose.

Bill Gates said, “If you were born poor, it is not a

mistake; but if you die poor, it is a mistake.” Nobody should
be more interested and invested in your financial future than
you yourself. The government or your employer will not do
it for you. It’s your own responsibility to learn the simple
rules of how money works. Understanding it is part of taking
care of your family.

Financial education and discipline can help you

become wealthy. You can do it. You can control and save for
your future.

A Gift for Everyone

We wrote this book because we want everybody to be

properly equipped to manage money.

To the many people who want to help their own

families and relatives but have no courage to talk to them
about financial education, give this book as a gift.

With this book, we hope to change and save lives.

16
 CHAPTER 1

Getting to Know the Basic

Financial Concepts

Financial concepts and solutions may not be the most

exciting subjects to learn about. But with discipline and
patience, you can understand the fundamentals and
appreciate their importance. Knowing the basic financial
concepts is the beginning of building a solid financial
foundation.

Financial independence is not only a dream. It is a

priority that every person should aim for. Take control of
your future by learning how to:

• Make Money

• Save Money

• Grow Money

• Protect Money

No one else will do these for you.

17
Getting to Know the Basic Financial Concepts

Building Blocks of a Strong Financial Foundation

Building a solid financial foundation is just like

building a house. You build it from the ground up.

Here’s how a solid financial foundation looks like:

Fig. 1-1
INVESTMENT
EMERGENCY FUND

DEBT MANAGEMENT

P R OT E CT I O N

H E A LT H C A R E

First, you must have proper healthcare coverage in

the event of a serious health problem or sickness. Both of
these can greatly affect or upset a person’s financial
stability, especially during old age. Statistics shows that
90% of personal bankruptcies are due to unexpected and
unforeseen illnesses.

Second, you must have proper protection in the

event of your premature death. If this happens, then you
have instant money to pay-off any responsibilities and
liabilities left behind.

Third, manage and pay-off all your bad debts.

18
 The Secret to Saving and Building Your Future

Fourth, set aside 3 to 6 months of your income to deal

with sudden changes in the job or business. This is also to
pay for unforeseen accidents or repairs.

Fifth, save and make long-term investments.

You should consider your healthcare and protection as

a priority. Why? Even if you save a few hundred pesos a
month, but have no healthcare and life insurance, it will not
take you far. When you get sick, disabled, or die suddenly,
your savings won’t last very long. Getting long-term
healthcare and life insurance are the best investments.

Likewise, if you experience an emergency but your

money is tied up in some investments, how could you deal
with the sudden unexpected expense? If your money was not
tied up then it could have been used as your emergency
fund. Worst, if you have an emergency and you have no
savings or emergency fund, then you may have to apply for
debt.

A strong foundation will result to you having sturdier

and resilient finances that can withstand any money-related
storms, tornadoes, and earthquakes. Following these five
building blocks of a strong financial foundation will help
build and secure your financial future.

19
Getting to Know the Basic Financial Concepts

UNDERSTANDING HOW MONEY WORKS

The Wealth Formula

Here’s a simple formula on how to grow your wealth

or money.

You can grow wealth if you can make the positive (+)
much bigger than the negative (-). If the minuses are
higher than the pluses, then there’s no wealth created.

*This concept/goal was developed by the International Marketing Group

(IMG) for illustrative purposes only. In no way does this statement offer,
guarantee, or otherwise imply any financial gain or reward as a result
of joining IMG. The term “wealth” is subjective and must be defined on
an individual basis.

20
 The Secret to Saving and Building Your Future

MONEY TALK: STRATEGIES OF THE WEALTHY

Most people spend money and save what is left.

Wealthy people save money and spend what is left.

Most people consider healthcare and insurance as an

expense.

Wealthy people consider healthcare and insurance as

an investment.

Most people work hard for the money.

Wealthy people let money work for them.

The difference between the wealthy and most people

is the way they think about planning their future.

THE X-CURVE CONCEPT

Laws of Building Wealth and Decreasing Responsibility

The X-Curve shows the relationship between taking

care of your responsibility while building your wealth. The
theory states that over time, a person’s responsibility
decreases and their wealth increases.

21
 Fig. 1-3a

Fig. 1-3a is further explained in the next pages.

Fig. 1-3b
Getting to Know the Basic Financial Concepts

The Responsibility Curve

When you are younger and starting a new family, the

level of responsibility is high. You and your spouse have big
job roles to fulfill such as becoming parents and having
babies, paying bills, among others. These are obligations
that both of you must fulfill whether you live or die.

In the early stages of building a family, the need for

insurance protection is quite high as well. But as your
children grow up and your mortgage matures, you reduce
your debts. The level of your responsibility then decreases.

24
 The Secret to Saving and Building Your Future

More Wealth, Less Responsibility

Assess this scenario. Something happens to you

unexpectedly, leaving your spouse with two children to raise
by himself or herself. Can your spouse support your two
children?

Factoring in your standard of living and your debts and

savings goals, you figure out that you would need an instant
cash of Php5,000,000 to continually take care of your
family’s needs. That means that you need a Php5,000,000
worth of protection while the actual cash is not yet
available. With Php5,000,000 life insurance coverage, your
spouse will be able to have enough cash or money to raise
the children in case you are gone.

However, let’s say you are a good saver. You build up

your wealth rapidly. When you have Php1,000,000 saved, you
may not need Php5,000,000 worth of insurance. At that
point, you only need Php4,000,000 because if something
happens, your spouse will have Php1,000,000 cash savings
plus Php4,000,000 of insurance, totaling Php5,000,000.

When you have Php3,000,000 in cash savings, your

protection needs will drop to Php2,000,000. And of course,
when you reach Php5,000,000 in cash savings or investments
on hand, you will no longer have the need for protection.
(This example is further illustrated in Fig. 1-4a on the next page)

25
Fig. 1-4a
Fig. 1-4b

Mortgage
Paid Off
5M

PAYMENT P0
Getting to Know the Basic Financial Concepts

2. Save as much as you can take care of your future.

Caution: There is a growing number of people

who have more debt as they get older. Instead of
reducing their mortgage, many people buy bigger
houses and take on bigger mortgages. And of course,
some may have more children if they remarry.

As a result, they still have high responsibility

and therefore high protection needs even when they
get older.

By understanding the X-Curve concept, you

may want to decrease your responsibility by
increasing your savings so that you move toward a
debt-free, happier life.

The Two Important Questions You Need to Ask Yourself

There are two sets of important questions that you need

to address:

1. What if you die too soon? Who will take care of your
family?

2. What if you live too long? Who will take care of you?

Here are the solutions:

If you die too soon, Life Insurance will take care of

your family.

If you live too long, Investment and Long-term Care

will take care of you.
28
 The Secret to Saving and Building Your Future

The 3 Major Financial Needs

1. Income Protection/Life Insurance

This will protect your family if you die too

soon. Life insurance protection can help you
replace your income, help finance your
children’s education, pay estate tax, pay
debts, etc. instantly.

2. Investment

This is the answer if you live too long. This

will generate continuing income for you
when you retire. It is your money working for
you.

3. Long-Term Healthcare

This is the answer to your healthcare needs

when you retire or get old. How comfortable
your health care situation will be after you
turn age 60 depends on the decision you
make today.

29
 Fig. 1-5

SSS PAG-
GSIS IBIG

PHIL
HEALTH
 The Secret to Saving and Building Your Future

The government programs GSIS/SSS, Pag-ibig, and

PhilHealth are great but we have to understand that they
have limitations. You cannot rely on their coverage and
benefits because they may not be enough to cover your
needs.

That’s why it’s important to look into other means

that can help you save and grow your money in order to
prepare for your financial future.

31
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 CHAPTER 2

Choosing the Right

Healthcare

In the Philippines, a lot of sick people die not because

there is no medicine or treatment available but because they
don’t have money to pay for these costs.

A study commissioned by the World Health

Organization (WHO) showed that most health expenses are
shouldered by private households—as much as 48% of total
health expenditures. These households often had to use out-
of-pocket payments for their health expenses.

Short-Term Healthcare

This is also known as the traditional HMO. Generally,

it has no life insurance coverage. There may be a yearly
increase of premium upon renewal. However, renewal is not
guaranteed, especially when there are high claims. HMOs
cover only up to age 60. There is no return of premiums for
non-utilization.

Senior Care

This type of healthcare works similarly to the short-

term coverage except that it covers ages beyond 60. It’s an

33
Choosing the Right Healthcare

individual type of HMO and it’s the most expensive program.

Renewal is also not guaranteed.

Long-Term Healthcare

This is an HMO with a Health Savings Account. It has a

fixed premium program, usually 7 years, which matures in
20 years. It comes with a 4-way insurance coverage together
with the long-term healthcare plan. Renewal is guaranteed
and all unused health fund accumulates with interest. It may
cover beyond age 60 with long-term care growth.

Sample Benefits of Having Long-Term Healthcare

• Long-Term Care Benefits

A guaranteed benefit which you can use after
20 years, whatever sickness you have or you
can also use it at age 70 onwards.

• Yearly Health Benefits

A 10% yearly accumulation based on the long-
term care benefit starting at the end of the 7th
year up to the 20th year.

• Long-Term Care Bonus

If no claim was made during the accumulation
period, 85% of premiums paid will be given
back at the end of the 20th year, making it
COST FREE.

34
 The Secret to Saving and Building Your Future

• Lifetime Network Access

Lifetime access to over 1,000 doctors, over 500
hospitals as long as you have funds available in
your health benefits.

• Cost-Free Health Benefits

With Return of Premiums for Non-Utilization

• Accumulation of unused yearly health benefits and

bonus
All unused yearly health benefits and yearly
health bonus accumulate with interest.

• Term Life Insurance Coverage

If the policy owner dies during the paying and
accumulation period, the beneficiary will
receive an amount equal to the sum of Long-
Term care benefit and Long-Term Care Bonus.

• Accidental Death & Dismemberment

If the policy owner dies due to an accident or
suffers from dismemberment of both hands,
both feet, or loss of sight in both eyes (or any
combination thereof) and is below the age of
70 during the paying and accumulation period,
he or she will receive an additional of 100% of
the Long-Term Care Benefit plus long-term
care bonus.

• Waiver of Installment Due to Death/Credit Life

If the policy owner dies during the
accumulation period, the balance of premiums
is waived, rendering the plan fully paid.

35
 CONCLUSION

Invest In Your Future

Congratulations for reading this book and making it

this far! You are investing in your financial education and
that is really commendable. You now have the opportunity
and knowledge to become your own financial educator.

You are making a difference in your life, in the lives

of your family members, and in the lives of the people
around you.

Here’s the good news. Whatever situation you are in

right now, you can make a change.

You can go from being broke to being blessed.

You can zero out your debts.

You can invest in your future.

You can make the change.

You can start today. How? Change your life by

changing the way you think.

Developing the Right Mindset

One thing common among highly successful people all

over the world is the way they think. They think rich and
97
Invest In Your Future

therefore grow rich. Sounds familiar? Read Napoleon Hill’s

classic book Think and Grow Rich.

Now that you’ve learned the important financial

concepts and how money works, it’s time to apply what
you’ve learned.

Here are a few tips to help you get started.

1. Increase your cash flow. Make as much money as you

can, while you can. Have multiple sources of income.

2. Spend less. Reduce your expenses. Remember, it’s

not how much you earn that counts, it’s how much
you keep. Set aside 20% of your income to save and
invest.

3. Zero out bad debts. Interests on debts are like leaks

that drain your finances.

4. Understand how money works. Read books on money.

Attend seminars on money. Seek mentors. Learn how
to make money and how money can work for you.

5. Define your financial goals. Write them down. Read

your goals every day. Set strategies on how to make
your goals work.

6. Have proper protection. While you are still building

your wealth, get insurance to give you and your family
peace of mind.

7. Build up your wealth.

98
 The Secret to Saving and Building Your Future

Take Action: Secure Your Future Now!

You will always have an excuse not to save or invest.

No matter what your excuse is, one thing is for sure. You’re
going to get old next year.

No matter what your excuse is, your child will grow

up and enter college and you would need money for his or
her education.

No matter what your excuse is, you will eventually

retire and stop making active income.

You have to be prepared for these kinds of

situations. Be with a group who inspires you. When the
members of your group save, they will also inspire you to
save.

IMG’s mission is to convert people from being

spenders to savers and to teach them how to save the right
way.

Go back to the 2 sets of important questions you need

to ask yourself:

1. What if you die too soon? Who will take care of

your family?

2. What if you live too long? Who will take care of

you?

Remember the solutions.

1. If you die too soon, Life Insurance will take care of

your family.
99
Invest In Your Future

2. If you live too long, Investment and Long-Term

care will take care of you.

In other words, be financially educated. Make sure

you have knowledge and understanding of basic and
important financial concepts. Make sure to act on your
financial needs and make the right choices. You must have
Healthcare, Protection/Life insurance, Savings and
Investments.

100
 FREQUENTLY ASKED QUESTIONS
(FAQs)

Question 1: How would you know how much protection

you need?

Answer: Your total life insurance coverage should be your

annual income x 10.

Here’s a sample computation.

Your Annual Income x 10

Monthly Income of Php20,000 x 12 = Php240,000 x 10

Amount of Protection Needed = Php2.4M

If you put Php2.4M in an investment that gives you 10% return annually,
you will earn Php20,000 interest per month. The Php20,000 income per
month is your monthly income replacement.

Here’s the computation:

Php2.4M x 10% / 12 mos. = Php20k per month

101
Frequently Asked Questions (FAQs)

Question 2: How much should you save for your

emergency fund?

Answer: As a guide, you should have at least 3-6 months of

your monthly income as your emergency fund.

Question 3: Where should I save/invest my money and

earn a return that is above the inflation rate?

Answer: One of the most realistic investment options to

outpace inflation is mutual funds.

Question 4: What is the minimum amount required to

invest in a mutual fund?

Answer: A mutual fund can be an easy entry to investing as

you don't need a large amount of money to start. One can
start at Php5,000.

Question 5: Where can I attend seminars on financial

management?

Answer: You may visit www.img-corp.com for more details.

Alternatively, you may also download the IMG Wealth app
on your iPhone or Android phone so you can be assisted by
an IMG Financial Educator.

102
 The Secret to Saving and Building Your Future

Question 6: If I want to join a community of like-minded

people who invest in their financial education, who should
I contact?

Answer: You may visit www.img-corp.com. Alternatively,

you may also download the IMG Wealth app on your iPhone
or Android phone so you can be assisted by an IMG Financial
Educator.

103
 Acknowledgement

The International Marketing Group (IMG) wishes to

thank everyone who shared their time, talent, and treasure
to make this book a reality. More importantly, we are truly
indebted to the people who not only believed in our financial
concepts, but also shared in our mission and crusade to
educate millions of families worldwide.

INTERNATIONAL MARKETING GROUP

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