Sha Nacino | Trace Trajano

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Yuppies! _____________________________________ This book is presented to: _____________________ _____________________ 3 .Think Rich.

Sha Nacino | Trace Trajano _____________________________________ 4 .

Yuppies! How to Overcome Credit Card Debts and Start Becoming Truly Rich 5 . Yuppies! _____________________________________ Sha Nacino | Trace Trajano Think Rich.Think Rich.

(63) 2 505. the authors disclaim any liability or risk as a direct or indirect consequence of the use of any contents of this book. 1745 Dian St. The information in this book was obtained from the authors’ personal experiences and insights. Manila. Nacino and Trace Wendell D. Quezon City Tel. San Bartolome.lloydluna. Fax (63) 2 846. For more information about LLOYDLUNA products.1089. While every effort has been made to make this book as accurate as possible. LLOYDLUNA also publishes its books in a variety of electronic formats. No. The LLOYDLUNA Communications. Published by The LLOYDLUNA Communications. Some content that appears in print may not be available in electronic books.5336. Trajano. 10 9 8 7 6 5 4 3 2 1 6 . Philippines. Dona Faustina Subdivision. Edited by Jionette Clyde Arawiran Cover Design by Marguelle Designs Book Layout and Publication by The LLOYDLUNA Communications.. All rights reserved. No part of this book may be reproduced in any form or by any means without the prior permission of the authors. Manila.Sha Nacino | Trace Trajano _____________________________________ Copyright © 2011 by Sharon T. Makati City 1235 Philippines.com ISBN: ISBN 978–971–93474–5–3 Printed in the Philippines. Novaliches. Philippines Printed by KD Printing Corporation located at 2 JP Laurel St. Tel. visit our web site at www. 9375935 Requests to the publisher for permission should be addressed to The Business Evangelist.

..i hate this kind of life. You Set it and Forget it! “I’ve grown my debt and now it’s haunting me.000… How will I be able to get out of this? 7 .i thought having a credit card is great but I’m wrong coz now my debt is greater than my income. Yuppies! _____________________________________ Chapter 8 Deep in Debt: To Control Your Debt..com When I ask the question. It’s a variation of “Hey Trace.” —Anonymous’s comment on http://tracetrajano.. “What is the one thing that is stopping you from getting out of the ‘rat race’ and onto the fast track?” one of the most common answers is debt.bank keeps calling at my office. I’m earning enough for my family but I have this big credit card debt… It’s ₱100.Think Rich.

8 . and that’s forever — until the property is standing there. whereas your debt is always finite. Because here’s the thing: debt is finite but your income. Let’s say you buy a piece of property. Imagine you have millions of pesos and you can buy a piece of property i. end. I will show you how you can do that. so whether or not you work. Later on. Debt is finite but income is infinite. is infinite. we’re going to solve that problem. you get one million pesos a month in cash flow. Think about it. you set it and forget it. As the title of this chapter goes. That’s why your income is infinite. to get out of debt. so in this chapter. Is Debt the Death of Your Dreams? The answer to that is “Absolutely Not!” You can turn this debt — this stumbling block – into your stepping stone. You can pass it on to your heirs. five-storey building. Let me repeat that. It will produce ₱1million pesos a month in income or cash flow. if you set it correctly.Sha Nacino | Trace Trajano _____________________________________ That’s one of the most common things that I’ve read in my blog comments. It will.e. at some point.

“I’m getting out of debt.” What color of the elephant are you thinking of? Exactly — purple. Here’s the other thing I’d like you to think about. Here’s the truth: Your past does not determine your future. This is called the “Law of Attraction. Yuppies! _____________________________________ So take comfort in the fact that you can create infinite income. As we know in Mathematics. That’s how the Law of Attraction works. You will attract debt because you are thinking about debt. no matter how big a number is. So if you say.” But here’s the problem: the Law of Attraction cannot distinguish or understand if you put the word “no” in front of it.” It’s like this: I tell you the statement. You can change your future by changing your present. “I am not thinking of a purple elephant. by changing how you think now.Think Rich. I’m getting out of debt. it’s always smaller than infinite. And here’s another truth: what you think about. I want you to be undeterred by debt and use it instead as your stepping stone to financial success. comes about.” Then guess what? You will get more debt. 9 . It doesn’t see the “no. “Do not think of a purple elephant” and you repeat that after me.

you’ve been working for about ten years. if it’s ₱1 million per month or USD100. let’s say you owe three people or three entities: You owe Ram. Bob Proctor said. Let’s say you’re a high earner. but what exactly is a debt repayment program? Let me illustrate this in an example. “You set up an automatic debt repayment program so you can focus on prosperity. We’re going to do a little bit of math.000. It can work whether your salary is ₱10. This sounds very good. This is just an example so do not think that this will only work for people who earn ₱100. not the negative. which is debt. You owe Ram ₱20. 10 .000 per month.000 a month.000 or ₱5. It works in any of those cases. the Hard Money Lender — maybe he is the stereotypical “bombay” doing 5-6 or whatever.Sha Nacino | Trace Trajano _____________________________________ In order to eliminate debt in your life. I just want you to get the principle.000 pesos every month.000 and you pay ₱2. as one of my mentors.000 per month. which is wealth or income. So going back to our example.” Focus on the positive. you’ve climbed the corporate ladder and now you’re earning ₱100.

” This is your total balance divided by the minimum payment you need to make on a monthly basis. You owe ₱50. Calculate what I call the “Debt Cash Strain Factor.000 a month You owe ₱50.000 and you need to pay a minimum amount of ₱1. Minimum payment is ₱2. Calculate the “Debt Cash Strain Factor” (DF) DF = Loan Balance Minimum Payment Lowest DF gets paid off first 11 . You actually owe more than what you earn every month. You are in deep debt in this example. I’d like you to do a little bit of math. So let’s say you are able to allocate ₱10.000 per month for your debt repayment program.000 a month.000 from MasterCard. Yuppies! _____________________________________ You have a Visa credit card at 36% interest.Think Rich.

I’ll explain why.000 MasterCard: DF = P50.Sha Nacino | Trace Trajano _____________________________________ And what I want you to do is pay off the debt with the lowest Debt Cash Strain Factor first.000 Visa: DF = P50.000 12 . So in this example. Ram: DF = P20.000 = 25 P2. By doing it that way. to whom you’ll have to pay more than the minimum amount.000 but you pay him ₱2. MasterCard has 25 and Visa has 50.000 = 50 P1. except for Ram.000 = 10 P2. you owe Ram ₱20. The idea here is you pay all of them the minimum monthly payment required. you’ll be able to pay off your debts a lot quicker than you think. The Debt Cash Strain Factor (DF) is 10.000 a month.

When you pay Ram first. Yuppies! _____________________________________ Recall that you allocate ₱10. The interest due. you do the same thing. And then on Month 2. it will take you forever to pay off your debt.000 for Ram.000 for Visa. Because your total principal has gone down.000.000 per month but you need to pay a total of ₱5. We don’t want you paying the minimum only. you pay him ₱2. if you do the math. If you do that. ₱2. In addition. is P1.000.000 for MasterCard) as your minimum payment to all three.000 (that’s the minimum he requires). It would be a mistake to pay only the minimum. But notice that since you now owe Ram ₱15.500.000.000 because you have paid ₱5. ₱1. you can pay him another ₱3.000 (₱2. your minimum payment should go down as well. 13 .Think Rich. remember? That means you’ll be paying him ₱5.

On Month 3.500 And then on Month 3.000 P1. Now. you do the exact same thing.500 MC P50. notice this. So can you see how your debt gets paid off a lot quicker? 14 .000 P1. Now you can pay Ram even more in terms of principal. you only owe Ram 9.000 --Visa P50.500 pesos and your monthly interest due is only 950 pesos.Sha Nacino | Trace Trajano Introduction _____________________________________ Month 2   Balance Payment Ram P15.000 --- Additional P5.000 P2.

000 P1. 15 .000 a month for Visa.Think Rich. Ram would have been paid off. you will have to pay ₱10.000 --- Additional P6.000 in additional principal payment. You can now allocate your payment towards paying off the next one. you should be paying ₱7. Instead of paying ₱2. By the time you pay off MasterCard. Yuppies! _____________________________________ Month 3   Balance Payment Ram P9. basically by Month 6.050 If you do the math.000 pesos only.000 P2.000 --Visa P50.500 P 950 MC P50. which is MasterCard.

000 P2.000 P7.000 Visa P50.000 P1. It’s very. there are several things that you can do.000 --- Can you see now how you can really accelerate paying off your debts by doing it this way? It’s a simple technique. 16 . and it works! But what If you come up to me and say “Hey Trace. very powerful. what if I really made a lot of financial mistakes and I can’t even afford to pay the minimum payment anymore?” Well.Sha Nacino | Trace Trajano Introduction _____________________________________ Month 6 Ram Balance Payment Additional ---MC P50.

seriously cut down on a lot of things. Make it simple. If you can sell some of those things or gadgets that you’ve accumulated over the years. As an example. Why not try approaching one of the credit card companies to whom you owe and renegotiate your debt. What if I offer you ₱10. Step 2: Renegotiate the debt.000 and I pay you ₱1. For a while. So offering them a big chunk of money versus their receiving payments in little increments 17 .” Well. that doesn’t work in the Philippines. It will help you to also get rid of all the clutter in your house as well. No movies. do it. it does work in the Philippines and I know because a relative of mine did this. Postpone that expensive vacation or that gimmick. Yuppies! _____________________________________ Step 1: Cut down on living expenses Forego that grand wedding you’re planning.000 debt gone?” Some of you might be thinking.000 a month. no dinner out. And in fact. “Trace. Opt for free or cheaper place of recreation. no. he did this not just once but several times across the different credit cards he had. I owe you ₱50.000 now and consider all the ₱50. you can call and say “Hey MasterCard.Think Rich.

go for that if you can raise the other ₱15. They asked you to pay ₱25. There’s no harm trying especially if your debt is killing you.Sha Nacino | Trace Trajano _____________________________________ is always tempting to them. Why? Because instead of receiving a little bit of money on a monthly basis.000 credit card debt. they can receive a big chunk of cash now. They can lend that ₱10.000. Let’s say you a got a “No” when you offered ₱10.000 that you paid them and so they can make more money.000 to pay off ₱50. your credit card company might just agree to your proposal. That would still be far better than having to pay off ₱15. And guess what — they can write that loan off and they can lend again. Heck. Step 3: Look for other means of income What if you’ve been trying to live below your means and yet you still have a lot of debt? What if you tried renegotiating your debt and the creditor said “no”? 18 .000. So it can be a Win-Win situation. Who knows.000 instead and they will write off your ₱50. It could actually be a Win-Win situation.000 or ₱20. Try renegotiating your debt.000.

Jay Castillo. as long as homeownership is allowed. If you had such an amount. wherever you are. It can be done.Think Rich. in any market. and get the right coach so that you’d be able to succeed as how Jay and my countless students all over the world have done.000 pesos in cash — that’s not the equity. It’s possible in any country. made 140. you have to look for other sources of income. In fact. Don’t think that you need hundreds of thousands of pesos for this. You just have to get the know-how. there’s a guru who also teaches people how to buy condos with no money down. But it can happen. Yuppies! _____________________________________ Then now. Think about it: 140. for instance.000 pesos in cash. Even in Singapore. it’s hard to believe it. That’s cash in his pocket in just seven days. what could it do for you right now? How much of your debts will be paid off if you can generate that amount of money in a very short span of time? And maybe right now. One way is through real estate. 19 . There are certain techniques in buying a house with no money down and selling it quickly for quick cash. you can buy real estate with no money down. You can become my next successful student if you just seek out the knowhow and the coaching.

Just look hard enough because if you have accumulated a lot of debt. but so what? Welcome to the real world. That’s one advantage. So how does that apply to your finances? Well. and that is to tell you it’s high time for you to convert your stumbling blocks into your stepping stones. There are a lot of people with big debts and yet they’re able to turn their life around.Sha Nacino | Trace Trajano _____________________________________ Let me end this chapter in the same way that I started it. So you might be thinking. 20 . It forces you to simplify and to make the right priorities. you’ll be able to distinguish better the important things and needs from your wants. As I said. “What is the advantage of having a lot of debt?” Well. having big debts forces you to simplify your life. granted you have a lot of debt. The thing is. said that when life throws a dagger at you. So it’s high time to simplify your life and enjoy the things that really matter. or your wardrobe. there’s always an advantage for every disadvantage. it’s likely that 90% of them are things that you don’t even use or see or enjoy. It forces you to get rid of clutter from your home. you can either catch it by the blade or by the handle. Norman Vincent Peale. One of the greatest motivational speakers of all time.

Personally alone. not including the debt that his company owed to creditors. He then went into executing and implementing what needed to be accomplished. His net worth became negative. Yuppies! _____________________________________ Now. as you all know. In fact. big debt also forces you to think big. back in the late 80’s to early 90’s.Think Rich. he was actually richer than before he got into financial trouble. but let me tell you the story again. convert a 900 million dollars of debt into billions of dollars 21 . and you know what? — in five years. he was in great debt. focus on the things that are really important. got into financial trouble. into getting more deals done. and return to what made him rich in the first place. Yet he utilized his big debt to simplify his life. Think about it. Donald Trump. How much debt do you have in your credit card? Do you have 900 million dollars in debt? I bet not! When Donald Trump saw a beggar down the street in New York. You’ve probably heard of this story before.” That beggar was richer than him because he owed 900 million dollars. he’s liable for 900 million dollars of debt. If Donald Trump can turn his life around. he said to himself: “This beggar is richer than I am.

one hundred thousand pesos credit card debt? That is nothing. eighty thousand. Realize that big debt gets the winners in life to think big. to turn their greatest adversity into their greatest victory. why can’t you overcome a fifty thousand. 22 .Sha Nacino | Trace Trajano _____________________________________ of net worth.

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