Jim Rohn wrote a very good article about the Ant Philosophy. When you study the ants, they really are amazing creatures largely because of their characteristics and their characteristics are very applicable to personal finance.

When you look at how the ants go about their business, they are very structured and deliberate. They know the value of hard work and they definitely know the value of having a storehouse. If we can apply the characteristics of ants into they way we go about our life, we definitely are more prepared with the challenges of life, and definitely more prepared for our life events — emotionally and financially!

The way the ants behave is so amazing and long before Jim Rohn thought about the said creatures, the Bible already made reference to those wonderful creatures. God actually wanted us to be like ants — “Go to the ant, you sluggard; consider its ways and be wise!” (Proverbs 6:6, NIV). And for a good reason… “Ants are creatures of little strength, yet they store up their food in the summer.” (Proverbs 30:25, NIV).

You want to achieve financial freedom? Be like the ant!

The Ant Philosophy

by Jim Rohn

Over the years I’ve been teaching children about a simple but powerful concept – the ant philosophy.

I think everybody should study ants. They have an amazing four-part philosophy, and here is the first part: ants never quit. That’s a good philosophy. If they’re headed somewhere and you try to stop them; they’ll look for another way. They’ll climb over, they’ll climb under, they’ll climb around. They keep looking for another way. What a neat philosophy, to never quit looking for a way to get where you’re supposed to go.

Second, ants think winter all summer. That’s an important perspective. You can’t be so naive as to think summer will last forever. So ants are gathering in their winter food in the middle of summer.

An ancient story says, “Don’t build your house on the sand in the summer.” Why do we need that advice? Because it is important to be realistic. In the summer, you’ve got to think storm. You’ve got to think rocks as you enjoy the sand and sun. Think ahead.

The third part of the ant philosophy is that ants think summer all winter. That is so important. During the winter, ants remind themselves, “This won’t last long; we’ll soon be out of here.” And the first warm day, the ants are out. If it turns cold again, they’ll dive back down, but then they come out the first warm day. They can’t wait to get out.

And here’s the last part of the ant philosophy. How much will an ant gather during the summer to prepare for the winter? All that he possibly can. What an incredible philosophy, the “all-that-you-possibly-can” philosophy.

Wow, what a great seminar to attend – the ant seminar.  Never give up, look ahead, stay positive and do all you can.

This is taken from Inquirer.net

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Run your household like a business

First Posted 18:01:00 07/29/2009

WHEN personal finance coach Randell Tiongson asked the audience at the recent Money Sense Live’s Family Finance 101 seminar how many have made decisions they regretted later on, a number of hands went up. Randell was quick to admit that he, too, has made bad decisions in the past.

“People can be logical in business but illogical in the house,” he says. “At the end of the day, it’s how we use money in the house that determines the quality of life. So treat your house like a business.”

Randell explains this further: “The household is an enterprise that operates like a business.” For instance, households have revenues (your income) and non-discretionary costs (bills). It needs efficient use of cash flow and wise allocation of resources over time. A household has assets and liabilities which must be taken into account in planning out one’s personal finances.

Just like a business, the household calls for people to make logical decisions and promote efficient operations. To do that, here are some valuable tips he offered:

1. Money that comes in must be bigger than what comes out.

2. Be objective-oriented.

3. Observe the 20/20 rule: Prepare for retirement 20 years before you actually need to retire.

4. Come up with a budget. Don’t take out wants; otherwise your budget will be like a New Year’s resolution that doesn’t get carried out. Prioritize needs.

5. Reduce consumer debt. “You can’t even start investing if you have liabilities.”

6. Use the liquidity ratio. “If the ratio of your expenses to income is 85 to 90 percent, that is too high. The solution is not always to increase income.”

7. Set goals.

8. Use the integrated portfolio approach for financial decision making. Don’t use emotions in financial planning, especially in investing.

Wise words from a wise family man.

(INQUIRER.net and Citibank invite readers to ask questions regarding financial matters. Send your questions to personal_finance@inquirer.net or comment through our personal finance blog called MoneySmarts.)

*Disclaimer: Readers are solely responsible for their own investment decisions and should thus conduct their own research and due diligence and obtain professional advice. INQUIRER.net will not be liable for any loss or damage caused by a reader’s reliance on information obtained from our web site. INQUIRER.net receives no compensation of any kind from companies or industries or funds that are mentioned here.

… con’t.

Life is not unfair because it always gives us second chances — yes, even in personal finance matters. It is never too late to change the way we do things and although it will result to a lot of sacrifices, those sacrifices will come to pass. We can take control of our financial destiny by making critical changes in the way we do things. Change is not easy and for most of us, change is painful. Here’s a thought: the pain that we will feel if we don’t change will eventually become much more painful that the pain we will feel with the change.

Change becomes easier if we take baby steps but there are some changes that we need to do that we have to do abruptly. If there’s one thing that we need to do ‘cold-turkey’, it’s the way we spend our money. The formula is very simple: spend less than what you make! There’s no magic formula, it really is as simple as that. People are always intrigued at how the rich became rich thinking that there’s got to be some secret. Here’s the real secret… there is no secret! Don’t be fooled into thinking that if you think the way rich people think, you will be rich – it is not a mind issue, it’s a heart issue. If you want to be rich, don’t think the way rich people think – do what the rich people do and that is, they spend less than what they make.

There is still time for us to put our financial life in order if we start today. The longer we wait, the more difficult and painful it will be. The reason we are where we are right now is because of the person you see in the mirror. Getting out of our financial woes will not be because of a best-selling author, not a savvy financial practitioner, not an inspirational speaker, not your spiritual leader, not your parents, not your boss, not Oprah, not the universe. The one that can get you out of your woes is the person you see in the mirror, with the grace of the Lord.

Speaking of missing an opportunity, I was reminded of something I almost missed out on when I attended the Victory Christian Fellowship’s 25^th anniversary last week. 25 years ago, the founders of this movement where in the University Belt area trying to reach out to students who are in the midst of a lot of strife and uncertainties. I was there but I missed out, totally unaware of a great opportunity for me to experience a life that would have made me live a much better life. But life is fair because the seeds that were planted 25 years ago eventually reached me 23 years after, and I finally live a life that brings real joy. Coincidentally, my spiritual awakening coincides with my financial restoration – this is not a mere twist of fate.

The blunders in my financial past allowed me to learn painful lessons that prepared me into the financial warfare that I am waging now. My misguided spiritual life also allowed me to realize the beauty of living a life of victory. I finally realized something too… Christ came for people like me – Jesus answered them, “It is not the healthy who need a doctor, but the sick.” (Luke 5:31, NIV)