I love the spirit of entrepreneurship. I especially love it when I see fellow Filipinos driven to build SOMETHING in the world – whether it’s a large corporation or a small corner carinderia (may paborito ako na malapit sa amin – they have great customer service, and even if they have a cheaper competitor less than 3 meters away, people still flock to them).

Anyway, got distracted. Sorry.

The point is that entrepreneurship – being innovative and building something for yourself and others - can accomplish great things if done right. And I’m not even talking about the money. I’m talking about using entrepreneurship as a way of solving other people’s problems, making their lives better, and transforming yourself in the process. My approach to business is all about legacy – not for the sake of one’s own vanity – but to create lasting change in anything, be it myself, my readers, and maybe even the world. Something passed on. Something that lasts.

So imagine how much it ANNOYS me when people tell themselves (and others) destructive, irrational, and morale-lowering “soundtracks” about business. Here are my top 2 annoyances:

1) “Follow your passion.”

Otherwise known as “Do what you love and the money will follow.” This is meant to be a positive statement, but when taken out of context it can be negative. I’m going to start out by saying there is nothing wrong with doing what you truly enjoy – but to expect this:

What You Love/Enjoy = What You Do For a Living

Well, it’s an equation that leads to dissatisfaction and cynicism.

While it’s best to enjoy the work that you do, to expect it to be The One and Only Passion in your life is to expect too much from a small area of your life. And this is often unrealistic. For example:

a) You could be passionate about something obscure, like creating mosaics based on the paintings of Fernando Amorsolo. That’s nice. You should do that. But you can’t expect to make  full-time living out of it. How many paying customers will you have? Three? Two? One? None?

b) You may feel like you’re drifting in life and you haven’t found your Passion. So you just sit and wait around, not committing to a specific direction because you’re waiting for “The One” to arrive. So you quit job after job, idea after idea, saying to yourself “I’ll know what my Passion is when I see it!” Well that’s just like sitting at home, hoping to eventually meet Mr./Ms. Right. Good luck with that.

c) You might also be the type who’s just curious about EVERYTHING. You feel torn in pieces every time you choose to work on one of your dozens of projects – you feel that by choosing one, you reject the others. How can you possibly work on Your Passion, when you seem to have more hobbies and interests than you can handle?

The key is to not stress out about this passion thing. It’s not The Passion that counts, it’s The System. It’s your ability to:

• Chose tasks or paths that are challenging, and serve a purpose (solving interesting problems, etc.)
• Know which ideas you should explore, which ones to throw away, and which ones to file for later
• Test different ideas, solutions, habits, and tactics.
• Understand and apply everything you learn
• Establish enough autonomy in some areas of your life to do all of the above

So instead of wasting time and energy obsessing about Your Passion. Try the things above. You might not be surprised that as a result of these things, passion will follow.

BETTER STATEMENT: “Work on things that matter to yourself and others.”

2) “Work hard and you will be rewarded.”

Again, this is meant to encourage people to work through their difficulties. Diligence is important, that’s true – but there’s a more important question: Are you working on the right things? Are you working on the things that will have the greatest impact?

I see a lot of people who, when they want to create a business, start with the following things:

• Go to BIR and DTI and SEC and register all the necessary paperwork
• Creating the perfect business plan
• Lawyers, accountants, etc.
• Have business cards printed
• Distribute flyers
• Rent a place of business or office
• Build a website
• Pay for advertising such as print ads, classifieds, ads in the phonebook

They’ve spent all that time and money and yet they have NOT even asked themselves the question “Teka lang, meron bang bibili ng ibebenta ko?”

And even if they’ve asked it, they have NOT conducted real-life tests if people really are willing and able to pay for their goods/services. Their answers come from magical fantasy places like “kutob ko” or “sabi ng kumare/kumpare ko” or “sabi nila magaling raw ako dito”. While these sources are useful, are you really willing to invest tens and thousands of pesos and weeks of your time on something that might not work out?

Are you aware of the stats they always say? Something like “80 to 90 percent of businesses fail”? If that’s actually true, this is probably the reason why. “Business people” invest so many hours and so much money on unimportant, non-revenue-generating tasks.

If you ask me, starting a business is really just 3 steps:

1. Find a problem/need people or businesses have
2. Create a solution
3. Charge them for that solution

Most people start at #2 – Create a solution, without first asking themselves if there’s a problem that other people/businesses have in the first place.

BETTER STATEMENT: “Work on the essential things first, and you will be rewarded.”

So what do you think about these 2 better statements I proposed? Do you think they’re valid? Do you know other positive statements with unexpectedly negative consequences?

Photo by Flickr user JD Hancock

Personally, I “work” during the weekend. That’s the time I spend making stuff for FrugalPinoy and my other projects that have nothing to do with my regular client work.

Anyway…

Last week I sent out an email asking if there were any aspiring online freelancers out there who would be interested in a complimentary “Pinoy’s Guide to Online Freelancing” (codenamed “Pinoy 500″) that I’m thinking about making.

I didn’t want to make this thing if none of you (or if way too few of you) were interested , so I made an interest list to see how many of you would want this. (If it would be worth the 10+ hours of work, as well as the few thousand pesos I’m going to spend on making this free thing.)

Well… enough people joined.

So I’m going to start making this free kit. If you joined the list, you’ll get it on March 5, which is 3 weeks from now. (In fact, I’ve already started shooting the first lesson on video.)

The Final Call

Starting tomorrow, only people in the the “Pinoy500″ interest list will receive insider information about the program. Plus, only the people in the list will receive the FREE training program.

(Some people who come to FrugalPinoy and who subscribe to the FrugalPinoy mailing list are only here for personal finance advice – so I want to be considerate of them and make sure they don’t get bombarded with information they don’t want or need.)

So if you want to get the free training program coming out on March 5, and all the good stuff I’ve got coming your way, I highly suggest you join the “Pinoy500 Online Freelancing List by clicking here.

That’s it for now.

I’m off to get back to work.

But be assured that if you sign up for the interest list above, I’ll be hooking you up with lots of great information…

…and if you’re NOT potentially interested in being an online freelancer, (and aren’t on the list), then starting next week you’ll be receiving the usual personal finance tips. And the emails about the training program will die down.

Enjoy the rest of your weekend!

At your service,

Celine Roque of FrugalPinoy.com

When we first tell ourselves that we should start saving more money, what’s our initial strategy?

“I’ll try harder.”

Some variations:

• “Basta kailangan ko na magtipid/mag-sacrifice.”
• “Konting disiplina lang yan.”
• “Kailangan ko lang ng willpower, dude/pare/bro/mommy.”

These intentions are noble, certainly, but self-discipline and willpower alone cannot help you reach your savings goals. As we’ve discussed before, willpower is limited and exhaustible.

First of all, willpower fatigues us. It takes a lot of physical energy to maintain full willpower all the time.

Also, while it seems easy to do something like “try harder” or “magbabaon na lang ako ng pagkain araw-araw” or “magje-jeep na lang ako instead of taxi”, remember that changes like these, no matter how small, are things you have to do every. Single. Day. For the rest of your life! True, these small changes seem easy now, as you’re reading this. but what about when you’re stressed? Tired? Depressed? Hungry? What if the weather is bad? What if after seeing some photos of Batanes online, you were so moved that you had the impulse to buy a plane ticket headed there?

Willpower works on a good, rational day – but it’s not enough when it comes to the daily changes and the inherent instability in our lives.

Finally, you have other things in your life to focus on – it’s not all about money. There’s your family, friends, and your own personal goals. With all these things fighting for your time and attention, you don’t need the extra stress of manually managing your savings and expenses every day.

The Stormtrooper watches passively as Pacman executes his plans for him

Yes, I finally said it. Managing your money can be really, really stressful. Do I record my daily expenses in a spreadsheet? Yes. Do I have a crazy customized planner I designed in Adobe Illustrator just so I can mark my financial progress? Yes. But this is because I AM A CRAZY PERSON. Not everyone is as OC about managing their finances. Just because it comes natural for me doesn’t mean that it’s equally easy and exciting for everyone else.

This is why, instead of changing your personality and habits as a savings strategy, you should create a reliable system that works regardless of your situation and the possible changes that occur in your life.

Create a System NOW, Form Habits LATER

We all think we’re so smart.

Sure, when we’re at our most rational, we can be very very smart.

But, unless you’re a Vulcan, you are not 100% rational all the time.

For example: I follow a very strict diet with minimal grains and no artificial sugar. But a personal tragedy occurred, which stressed me out beyond belief.

I did not follow that diet for 3 weeks.

Did I want to get back to it? Yes. But it’s been hard because I’ve now formed the habit of not following it. Sure, I could try harder every single day – but that’s daily effort. Given my stress levels I would probably be weak during the afternoons and tell myself that I “absolutely need that chocolate bar”.

It became clear that this was something I could not do on my own. I had far too important things in my mind to worry about something like my diet – even if, over the long term, I know in my rational mind that my previously healthy diet would give me more energy and make me feel healthier overall (also, every day I’m off it I get a little “rounder”). But, over the course of the day, I give in to several unhealthy cravings. “Just this one time”, I told myself. “I’ll be back on that healthier diet any day now.”

The day only came when I threw away my illusions of a strong willpower and decided to use a system instead.

My diet worked so well in the past because I spent Sundays preparing my healthy sugar-free desserts for the rest of the week (“cakes” made out of coconut milk, dessicated coconut, eggs, and bananas, and “ice cream” made out of no-sugar gelatin flavored with tea and a layer of sliced fruit). I also made it a point that we never ran out of leafy greens like pechay, repolyo, kangkong, and talbos.

So, all I had to do was revert back to that system. Getting back to my diet was much easier after that.

The same could be said for finances. Let’s say that you hope to save Php 5,000 per month. But, even if you know you can afford it with little sacrifice, you never have enough money left to set aside that Php 5,000. “Di bale, I’ll pay myself first,” you say to yourself.

Three months later, wala pa ring nangyayari sa “I’ll pay myself first”.

Don’t worry – no one’s blaming you. You don’t have to be a gastador or gastadora to not have enough money for savings. Maybe you’re earning just enough for your needs and have little room for “luho”. Maybe you had to give your girlfriend/boyfriend/wife/husband/roommate that expensive gift to show your appreciation. Maybe you were too stressed at work and felt like a trip to the beach could really help recharge you. While you could have afforded these things, it’s possible that you felt guilty afterwards because you know that you really, really want to save more money.

This is where automated savings comes in. Fortunately, many local banks now offer this. The idea is simple:

So here’s how to set it up:

1. Check if the bank that hosts your payroll account has an automatic scheduled deposit/transfer program.
2. Note the days that your salary/paycheck automatically debits into your payroll account. (Usually on the 15th and/or the 30th.)
3. Open a savings account in that bank and enroll it into the automatic schedule deposit/transfer program.
4. Schedule the automatic transfers around 2 to 3 days after your paycheck as arrived (this could be on the 17th or on the 2nd of the following month). You might have to fill up a form for this, whether it’s a paper form or an online form.
5. You will also have to set the amount for the automatic transfers. If you’re a little nervous about having enough money for the rest of the month, even Php 500 will be enough per transfer.
6. Watch your savings grow over the months because of this automatic set-up. When you’ve accumulated enough, you can simply withdraw your savings and transfer them for their intended purpose (investments, retirement, etc.)

Notice how this plan is NOT about regular discipline and willpower. You will only have to make a decision when you set this up and when you’re ready to withdraw.

When I first set up my automatic savings system, I didn’t even withdraw the money there for almost a year. I didn’t feel the monthly pressure of trying to save more money, because I knew that just 2 to 3 days after I received my wages, my savings were already taken care of and any money left is for living expenses and guilt-free spending.

Action Task: Create an Automatic Savings System

See if your bank (where your paycheck account is) allows for automated savings, and find out how to set it up. [Note: I am not personally endorsing any bank. I just have their contact information here so that you can easily contact them after reading this and find out if they have this service.]

• Banco De Oro . (+632) 631-8000 or email at callcenter@bdo.com.ph
• BPI. Their automatic savings program is called BPI Direct Save Up, click here to learn more.
• HSBC. They have a program called Autosaver, click here to learn more.
• Metrobank. (632) 860-3000. For provincial areas, 1-800-10-860-3000.
• RCBC. (632) 894-9577, Domestic Toll Free# 1-800-10000-7222
• Security Bank. (632) 867-6788
• UCPB. (632) 811-9111
• Unionbank. 84-186. They don’t offer an “automated savings” service per se, but you can set up regular scheduled transfers to your savings account via their EON account.

Then, set it up to automatically tuck away savings for you 2 to 3 days after you receive your paycheck. Your automatic savings deduction could be Php 500 per month, or it could be P5,000 twice a month – just choose something you can afford but can help you reach your savings goals as well. You can always tweak your system later.

Now that we know we can set up something this easy for savings, is it possible to do this for investments as well?

The answer is a loud “YES!”

Next week, we’re going to tackle just that.

So, do you think an automatic savings plan like this can work for you? Will you set it up this week?

Photo by Flickr user jdhancock

[Note #2: This is a follow up to a previous update. I received more emails than usual from you guys - some even from OFWs in the UAE, the US, and Saudi Arabia - thanks for all the responses everyone! Note that I read every email and try my best to respond to you all.]

I’ve never had a job.

If you’ve been reading FrugalPinoy for the last 4 years, you know this about me. I put myself through college and supported my family by doing online freelance work. This means that I provided paid services – my skills were writing and design –  to foreign clients online.

It was the only kind of job I could do without missing classes or being late for work. After all, I could schedule my own time, work on my own terms, earn in US$ – all my clients cared about was that I delivered great work and that I delivered it on time.

After college, it made no sense for me to print out resumes and apply for a “real job”. The offers back then were around Php 10,000 to Php 13,000 per month for new graduates, and I thought, “No thanks!” I was earning TWICE that as an online freelancer.

My lowest paying job at that time was $5 per 150 words – around Php250.00. For 10 minutes’ worth of work!

And I didn’t even have to show up in an office, wear corporate clothes, or spend money on transportation and other miscellaneous costs that come with employment. I was 21 and I felt like I had found my dream job.

Then, before I could realize what happened, something BIG changed…

How This Whole “Internet Entrepreneurship” Thing Started

In mid-2005, I saw a job ad that read: “WRITER NEEDED: $1 for 500 words”. That was only short of Php 50.00 at that time.

Then I thought, “Baliw ba ‘to?” so I ignored the ad and moved on with my life, not realizing that this was a sign of things to come.

At first it came in trickles, then, many of the online job boards and classifieds I was regularly visiting were now flooded with job ads that paid only $1 to $3 per article.

What was even more surprising were the dozens of applicants lining up, eager to take the job!

It didn’t take long for my clients to abandon me, dropping off one by one. It took me a while to learn that they were starting to choose the $1 article writers over me, and that if I wanted my job back, I had to compete with those rates.

So, I had two choices:

• Lower my rates so that I can compete and apply to as many jobs as possible
• Keep my rates as they were and look for clients who’d still be willing to accept them

I couldn’t make this choice alone. I knew I needed help.

But at that time there were no legitimate Pinoy sites that taught online freelancing…

… there were foreign blogs, websites, and books – but none of them tackled the problems that I was facing. What if clients demanded “cheap labor” rates? How do you negotiate with them? Where do you find clients who wouldn’t even question your skills and credentials in the first place – just because you’re from a Third World country?

I had hit a roadblock. I searched and searched, but couldn’t find another Pinoy who was doing what I was doing, nor could I find anyone else who had walked the path before me.

All I found were hundreds upon hundreds of my fellow Filipinos doing things like “clicking ads”, “filling up surveys”, or “posting ads on their blogs hoping that they’ll get $0.01 per click” and calling it “online business”.

Yeah, right! It was all mostly pyramid schemes, scammy programs, or businesses that promised easy money – only to reveal later that you have to work really hard for years with no pay until you see your rewards.

And the few people I saw who were doing valuable work for pay, they were still being paid $1 to $3 per article.

I couldn’t find anyone who was doing the high-level freelancing I wanted to do.

There were no training programs… no books… heck, there weren’t even legitimate blogs during that time that could teach me what I wanted to learn.

So I had to decide on my own.

Keep my rates and look for new clients, or lower my rates and follow the trend?

I chose neither. I raised my rates.

My line of thought was, “Try ko lang. The worst thing that could happen is that I’ll have to get a regular office job.”

What happened next surprised even me.

After raising my rates, working hard, and doing a LOT of trial and error, I found that raising my rates was the best decision I’ve ever made in my freelance career. Hands down.

My clients didn’t disappear, my cash flow didn’t diminish. Here’s what I got instead:

• higher paying regular clients
• more challenging writing tasks (no rewriting existing articles or doing “filler” work)
• greater exposure for my work
• the opportunity to work with foreign entrepreneurs and writers I had admired

Then, after only 3 years, my articles started getting syndicated by The New York Times, CNN Money, and Salon Magazine. My articles were also mentioned a few times at Lifehacker.org. (If you don’t know what this means, imagine the most famous person in your field talking about something YOU wrote.)

I am NOT saying this to be boastful – far from it. I’m saying that if you’re competent at a certain skill (note that I said “competent” not “the best”) you can achieve similar, or even better, things via freelancing.

More importantly, as I attempted to create a framework or process for getting more high-quality freelance job…

…I may have developed a tested system that can help YOU do something similar.

Except, you don’t have to go through all the embarrassing mistakes, the painful trial and error, and the long periods of waiting that I had to endure.

Ang mahirap sa karamihan ng online businesses promoted or touted by others is that they are not tested and are based solely on theory rather than reality. The people selling these systems and “businesses” have not done the work themselves, and have not tweaked it to perfection, and have not done the numbers. And everything I will share with you is something I’ve tried, tested, and fine-tuned over the years.

As long as you were willing to DO THE WORK and WILLING TO ASK FOR HELP throughout the process, I have no doubt that you will reach the same level of success  - or even surpass what I’ve accomplished.

So here’s what I’m coming to… here’s what’s being demanded of me… and here’s what I feel compelled to do.

Here’s the deal.

The demand for highly skilled Filipino freelancers far outweighs the supply. Not a week goes by that I don’t hear the mention of “hire in the Philippines” or “hire Filipinos” in international business sites and forums.

While there’s a steady supply of people who will do “cheap labor”, that is NOT what I want my readers to go for. Should you decide to do this, I want you to find high-quality clients who hire you for fulfilling, high-value work – and get you paid fairly as well.

So I feel that any skilled Filipino who is WILLING to step up their game can find:

• a skill they can sell as a freelancer, even if it’s part-time
• at least 3 foreign clients who are willing and able to pay them fair international rates
• that eventually, these part-time freelance jobs will help them earn enough money so that they have the option to quit their day jobs (they don’t have to, but the option is nice)

I’m thinking about making a Free Resource Kit for you, IF you’re interested in earning money on the side through freelancing.

Why freelancing? Why not selling your own products or investing?

Here’s why:

• Freelancing is DIRECT income. You work, you get paid – simple as that. Investing and selling products carries more risk and needs a higher level of knowledge/experience that most people don’t have the time or energy to even think about.
• You have FREEDOM to choose when you work, and where you work – these are great perks if you already have a job. Most people might not even be thinking about quitting their jobs, and that’s okay. This can just be a side project or extra cash for you.
• Most likely, you are ALREADY SKILLED at something you can turn into a paid freelancing service – but you don’t know what it is yet. On the other hand, selling products requires you to invest time and effort into producing and selling a product, while investing requires specialized knowhow that you might not have yet.

Over the years many of you have agonized and pleaded that I show you how to make more money – and I believe that freelancing is the best way to do this. Especially if you’re just getting started – you’ll be capitalizing on skills and resources that you already have. All you need is a step-by-step system to convert it into direct income.

Because of this, I’m thinking about making a training program about how to start your online freelancing career, but I need to make sure it’s perfect, and that others could repeat the results I got.

To test this, I’m thinking about making a value packed, 100% FREE Pinoy’s Guide to Online Freelancing for you. IF and ONLY IF you’re serious about starting your own online freelancing business, where you provide paid, skilled services to foreign clients.

Here’s what it includes:

• A basic introduction to freelancing. What it is, and how you can tell if it’s for you.
• The most common mistakes that Filipino freelancers make – and how to avoid them. You’d be surprised how many people rely on ineffective, time-wasting strategies. You DO NOT want to be one of those people.
• The I+C+D Formula. This is the EXACT formula I use for picking ideas/services I can sell as a freelancer (and also what I use to pick business ideas in general)
• The Client-Coordinate Technique. Want to spot who exactly is your potential client? I’ll teach you how to find their “coordinates” so that you don’t waste months randomly answering job ads, and you can have a shot at the jobs that aren’t advertised anywhere.
• Email scripts for pitching to your first potential clients. Just copy and paste them and make minor edits. Pitch to 10 potential clients in one sitting using these scripts.

All these modules/lessons are based on the most common questions I receive from readers who ask me about making money online. These are techniques I haven’t seen discussed, or even mentioned in local forums, events, or even local blogs. AND I DON’T KNOW WHY!

Maybe because it took me 8 years of being a 100% full-time freelancer to learn and fine-tune these techniques? Maybe because I spent over Php 70,000 (or more) in books, courses, and materials just to be more proficient in my field?

It doesn’t matter what the reason is – the point is that I’m willing to give you all a chance at what I think is my best material –  for free. I’m inviting you all to test these methods on a grand scale!

BUT here’s the catch:

I quietly released this project last January (as Pinoy500), but didn’t expect to do a full launch until now. It took me this long because I can be such a perfectionist, and small projects tend to become giant projects I can’t control.

Because I want to get this right and I want to make sure it’s something that you want, I want to get a list of everyone who’s interested in online freelancing.  It will take me days of work to do the videos, make the slides, and design the downloadable worksheets. I just want to make sure that when I finish it, people will actually want to use it.

So here’s what I want you to do…

If you’re interested, then: click here and leave your email address on the form, and if I end up making this I’ll send it to you. This is separate from the “Frugal Pinoy Insider List” because I don’t want to bother everybody else with this – only those who are interested in earning a side income through freelancing.

Now, finally, I officially give you Pinoy500:

Note: If you signed up for this during the “soft launch” in January, you don’t have to sign up again. The form will tell you if you’ve already signed up.

Click Here to Sign Up for Pinoy500

If enough people get on this “Pinoy500 interest list” (I’m thinking 150 or more) then I’ll make this FREE training program and send it to EVERYONE on the interest list. I won’t release it on the site or anywhere else – just on this private list.

If no one wants this, then no worries.

Always at your service,

Celine Roque, FrugalPinoy.com

P.S. I call this list the “Pinoy 500 List”. I’ll explain later.

Okay, so marami akong natanggap na emails and comments from readers who were curious (and even upset) about the previous blog post.

Sorry about that. Didn’t mean to be too dramatic. Di ko sinadya. It’s FrugalPinoy’s 4-year anniv and maybe that’s why I was too dramatic.

Anyway, as you may or may not know, my freelance career and my business are both getting WAY out of control – but in a good way.

When I first started my ventures, I was still a college student in 2004, trying to support my family and make ends meet. I never in a million years would have IMAGINED I would get to where I am today.

I still have far to go, and more to achieve, but I’m proud of the things I’ve built. Most importantly, I built it by myself. And without a college degree.

I’ve been blessed also for the opportunity to regularly share at least some of the things I’ve learned through the FrugalPinoy blog and Facebook Page.

And I’ve been deeply touched by all the heartfelt emails, comments, and messages you’ve sent over the years.

And I learned a lot.

So here’s what I’ve been holding out on for years…

I’ve been:

• Nicely asked
• Encouraged
• Begged repeatedly
• Pleaded with

For years I’ve resisted teaching this stuff.

I made the usual pathetic excuses. “I don’t have time…” or “I’m too busy with my actual business to actually teach this to others…” and even “Jusko. Sino ba ako para magturo!?”

And I’m embarrassed to admit that during that time, even during my “lean” months, my freelancing business grew bigger, my clients became more high-profile, and people started paying more attention to my work…

… I started wondering if teaching my fellow Filipinos this would actually HURT my own business and result in fewer clients. I also wondered if it was possible to teach everything I’ve learned in the past 8 years, including things I learned from respected mentors, paid courses, and experience. (I know, I know, what a stupid and small way to think!)

Also – I’m kind of a perfectionist.

Ok maybe not just “kind of”. I’m a super, 100% full blown perfectionist.

And because I’ve given up all hope of fixing my perfectionism, I can’t go half-way on this new project with you guys. I have to go all the way or not at all.

How I’m Trying to Learn from the Past

Before I started Frugal Pinoy, my mom and some of my friends would tell me, “Celine, you should write about this!” (referring to my ideas and business experiences)

BUT, I thought, “Jusko sino naman ang magbabasa niyan? And ano ba alam ko sa businesses and finances ng ibang tao? Mangingialam pa ako…”

Still, I ended up launching this blog anyway. And it ended up having such a profound impact that I’m understanding only now.

It would’ve been stupid and small minded of me to NOT start FrugalPinoy.com.

So this leads me to think: maybe it’s also small and stupid if I don’t share what I know about starting one’s own online freelancing business.

So I’m Seriously Considering Doing This

Despite my fears, hesitations, and complete nervousness, I am seriously considering pulling back the curtain and showing you EVERYTHING I know about starting your own business online.

I’m going to start sharing things – from how to find profitable freelancing business ideas to finding your first paying clients. These are things I’ve never shared yet with ANYONE, except maybe a handful of people who were very very good at drilling me for information (you know who you are, you determined FP readers!)

I would have LOVED to have this kind of training when I was starting out.

If I Do This, It Will Be A LOT of Work

I’m excited about sharing these things with you, but I’ve been working solo long enough to know that my tiny projects turn into giant projects that go out of hand.

So I ONLY want to do this IF there is enough interest.

So I want to know…

• What do you think?
• Should I do this?
• Would you be interested?

Anyway, if you have a second, please leave a comment here to let me know what you think.

Or you could email me at support@pinoy500.com.

It would mean a lot to me, and I’ll do my best to respond to EVERYONE.

Talk to you soon,

Celine of FrugalPinoy.com

Well… today is a bit different.

First of all, FrugalPinoy’s 4-year anniversary is approaching.

To celebrate, I want to stop holding back and reveal some things that are a little more personal.

Here goes.

Last 2010 was one of the worst years for me. This goes for almost every aspect of my life – professionally, financially, and even personally. I had:

• Lost a high-paying client/project which accounted for 60% of my income
• Completely depleted my emergency fund because of some super expensive family emergencies
• Ended a 4-year relationship
• My very old house was falling apart and repairs were costly
• Felt like I had “plateaued” professionally – I had reached a very good level in my career and felt like there was nowhere else to go. This led to boredom and monotony.

This is why I look forward to New Year’s Day every year. While the date itself isn’t that important – it’s just like any day of the year, except there are celebrations – I think of it as a time of letting go, creating change in my life, and expanding my horizons.

Here are some examples of goals I used to set:

• Earn at least $2,000 per month for my freelance work (all my clients are foreign)
• Be fluent in Spanish (I wanted to start pitching my services to Argentinian businesses)
• Take up a new professional course each month
• Finish repairing my house
• Learn how to negotiate better
• Raise my hourly rate

As you can see, some of those goals are HUGE, while some are small. My main intention was to do something new with my life. Change things up.

This is why 2012 is important for me. If 2011 was my year of rebuilding, I see 2012 as the year where I’ll outdo everything I’ve ever done before. Even if this year doesn’t “feel” important, it feels hugely different.

How is it different?

Well, instead of focusing on myself…

This year is about YOU.

I’m serious.

As many of you may have noticed, I’m revamping the type of content we have here at Frugal Pinoy. I’ve started focusing on what YOU readers have told me over the years.

This is why I’ve covered topics on earning more money, creating an automatic financial plan, and changing your financial life without too much dependence on willpower.

There’s still more to come. I’m always interested in what you guys have to say, so keep the ideas coming!

But… (eto na)…

There is really ONE big request that you all have been asking me – through your emails, comments, and even your Facebook responses. I’ve been ignoring this for YEARS – even if you keep writing to me about it.

And, more importantly, it seems like you readers aren’t 100% aware that this is what you’ve been asking me to do.

So that’s what I’ll give you, especially since after thoroughly studying your emails and comments over the past 4 years – it’s what you’ve secretly been asking for all this time.

BUT (na naman) I am very, very, very nervous about this. Doing this means sharing more about myself and my business, even more than I have done in the past.

And I’m also going to need your help.

So I’m going to ask you guys to do something for me.

But that will have to wait until next time.

See you then,

Celine, founder of FrugalPinoy.com

P.S. I’ll update you with more details in the next few days. Until then, please email me at support@pinoy500.com and let me know your #1 most important, super priority goal for the rest of 2012. I read every email and will try to respond ASAP.

Here’s what happened in the previous lessons:

Lesson 1: How your inner soundtrack is holding you back – and what to do about it

We learned how we all have inner soundtracks playing in our heads. When this soundtrack is negative, it can hold us back from reaching our goals. This lesson taught us how to uncover the hidden assumptions in our inner soundtrack, and also how to challenge them so we can rewrite a new inner soundtrack that is more positive and can help us achieve more. (Click here to review it.)

Lesson 2: Change your life dramatically by asking this one question

Is it possible to make the right changes in your life just by asking a question? Our answer to that is, “not always” but asking The Miracle Question helps. Instead of wasting time on internal dramas and obsessing about the past and our hidden motivations, we learned the strategic question that can help us find that one small change we need to make to get everything started. (Click here to review it.)

Lesson 3: Stop depending on “willpower”. Shape your path, instead.

Lastly, we learned that willpower is limited and we can’t depend on it 100% if we really want to reach our goals. Instead, we have to make it easier to make good decisions and harder to make bad ones. (Click here to review it.)

Applying the things we’ve learned in these 3 simple lessons  is the first step to becoming above average and achieving your goals.

That’s what we’re trying for this 2012.

Our Rise Above Mediocrity

It doesn’t take much to be above average.

If you think about it, average means “what most people are/do”. And if we look at what most people do, it’s really not that impressive.

• According to a Nielsen survey last year, the average Filipino spends at least 13 hours per week watching TV.
• The average family income in 2009 is Php 206,000 (around Php 17, 166.00 per month). (Source: NSCB)
• Average annual savings in 2009 was Php 31,000 (around Php 2,583.00 per month). (Source: NSCB)
• Filipinos on average have only nine weeks of savings in reserve. (Source: Yahoo! Philippines)
• Only 4 out of 10 Filipinos have businesses (Source: GoNegosyo)

Photo by Flickr user jdhancock

I’ll do more.

Magiging masipag na ako.

Kaunting tiyaga lang yan.

Basta, kailangan ko lang ng disiplina.

Just do it!

Ever said these things to yourself? And, more importantly, ever failed to follow through on your goals even AFTER you’ve said these things?

Maybe you honestly thought if you were a bit stronger you could stick to that diet, or if you were more disciplined, you’d stop impulsive spending. With just a little bit more willpower, you could achieve your goals, get more done, and become superhuman.

Right?

Photo by Flickr user jdhancock

 Maybe. But your willpower is not enough.

Many studies show that willpower has its limits as a motivational tool. First, it depletes physical resources in our body. Here’s a discussion of various studies on the subject (emphasis mine):

The mind-body response of exerting willpower literally fatigues us (Tice et al. 2007). It depletes physical power, as shown in one study that looked at the effects of mental self-control on physical stamina (Bray et al. 2008). In this study, trying to control one’s thoughts decreased muscular endurance, as measured by performance and EMG activity.

In one recent set of studies (Gailliot et al. 2007), participants were required to control their thoughts, emotions or behavior. Immediately following each act of self-control, participants’ blood glucose levels dropped. Levels did not drop dur­ing similar tasks in which participants were not exerting self-control.

Source: “The Science of Willpower” by Kelly McGonigal, PhD

This is why dieting is so hard. You try to curb your cravings but, by by exerting self-control, you deplete the blood sugar in your body so you end up craving more. It’s tricky and ironic, isn’t it?

Also, willpower is finite. It doesn’t come from the power of your “soul” or your “mind”, no matter what motivational speakers tell you. It’s very limited.

Our supply of self-control is limited. Studies show that our self-control is actually sapped each time we use it (Baumeister & Vohs, 2003). It’s also sapped, predictably, by alcohol, lack of sleep and stress.

Source: “Money and Self-Control: The Battle Between Thoughts and Emotions” from PsyBlog

Psychologists have discovered that self-control is an exhaustible resource. And I don’t mean self-control only in the sense of turning down cookies or alcohol, I mean a broader sense of self-supervision—any time you’re paying close attention to your actions, like when you’re having a tough conversation or trying to stay focused on a paper you’re writing. This helps to explain why, after a long hard day at the office, we’re more likely to snap at our spouses or have one drink too many—we’ve depleted our self-control.

Source: “Why Change is So Hard: Self-Control is Exhaustible” by Dan Heath

Since willpower is limited, you can’t depend on it alone to make drastic changes in your life.

You need to “Shape the Path”. This means: change your environment and situation to make it easier to reach your goals. So that when it’s time to call on your willpower, you don’t have to exert so much effort in walking the right path.

Photo by Flickr user dolmansaxlil

How do you do that?

We can break it down to two approaches:

# 1 – Make it easier to make good micro-decisions.

How exactly can you make life changes easier? Change your environment so that you don’t have to make a hard decision every single time. Most of us think that changing our lives requires ONE BIG DECISION (“From now on, I will avoid all artificial sugar treats!”), when the change actually happens in several micro-decisions over time (“Isang slice lang naman ng cake today…”, “I’ll just buy one can of coke this afternoon…”, and “Well I had that cake yesterday, but there’s no harm in having an ice cream today because I’m feeling sad…”)

So, ask yourself “What small changes can you make in your environment/situation that can make it easier to exert willpower when the micro-decisions come up?” 

Here are some examples:

Instead of saying “I’ll try harder to save more each month”, set up an automatic savings plan that automatically deducts a set amount from your paycheck account each month. It’s easy because you do not have to actively think about saving. It just happens.

Instead of saying “Just do it! Exercise regularly!” why not get all the extra barriers out of the way and prepare your gym bag the day before (just as Arvin said he did in the comments from last week’s post).

Key Takeaway:

Make it smoother and easier for you to make good decisions when you’re low on willpower.

# 2 – Make it harder to make bad micro-decisions.

This time, ask yourself, “What changes in my environment/situation can stop me from giving in to my bad habits/impulses?”

Again, some examples:

Instead of saying “I’ll exert more self-control and spend less money on going out,” only take a set amount of cash with you when you leave the house. No credit cards or debit cards – just enough cash for the basics and a little “wiggle room” for emergencies. (After all, for a REAL emergency, you can always text a friend or relative to help you out.) You may WANT to buy that gadget impulsively, but you can’t cause you don’t have enough cash.

Instead of saying “Basta here’s a list of food that’s allowed in my diet, and here’s a list of what’s not allowed. I’ll do my best to stick to it”, then just don’t buy the wrong food in the first place and stock up on healthy food! This means that when you’re hungry, all you have is healthy food. You may WANT to eat cake, but there’s no cake in the house so you snack up on fruits instead.

If you’re worried about impulsively spending your hard-earned emergency fund, then don’t put your emergency fund in an ATM account. Keep it in a passbook account, so it’s more of a hassle to go to the bank and get your money during non-emergencies.

Key Takeaway: 

Set up barriers to prevent yourself from doing the wrong thing when you’re low on willpower.

This Week’s Action Task:

Think of your #1 goal for the year and ask yourself these questions:

• How can I change my environment/situation, so that I can make reaching this goal easier – even when I’m low on willpower?
• What barriers can I set up so that I don’t abandon or forget this goal even when I’m low on willpower?

Also, therapy tends to be costly.

But this doesn’t mean that we can’t learn from some of the techniques that therapists use. I’m going to share with you a technique I learned from the book “Switch: How to Change Things When Change is Hard” by Chip and Dan Heath. Here’s what you can expect to learn:

• How to stop wasting time being emo and wasting energy/time on uncovering your feelings and emotional scars from the past
• What questions to ask yourself to start taking small steps to solve your problems, make behavioral changes, or accomplish your goals

Being Solutions-focused

In the book, the Bros. Heath discuss solutions-focused therapy. Unlike the type of psychological talk therapy and psychiatry we see on US TV shows, solutions-focused therapy does not dig around your past, explore your childhood, or unearth repressed memories about your parents. Solutions-focused therapists don’t care about your hidden reasons and motivations from childhood – they care about fixing the problem at hand.

How do they help you find solutions? First, they ask you what your problem is. Then, they ask you a very specific question to help you find a simple solution.

They call this “The Miracle Question.”

Luigi confronts Mario with a serious question

Here it is (quote from the book, emphasis mine):

“Can I ask you a sort of strange question? Suppose that you go to bed tonight and sleep well. Sometime, in the middle of the night, while you are sleeping, a miracle happens and all the troubles that brought you here are resolved. When you wake up in the morning, what’s the first small sign you’d see that would make you think, ‘Well, something must have happened—the problem is gone!’?”

Chip Heath; Dan Heath. Switch. Crown Business. Kindle Edition.

Or, in conversational Tagalog:

“Sabihin nating habang natutulog ka mamayang gabi, may milagrong mangyayari, ma-so-solve na yang problema mo. Pag gising mo, ano ang unang maliit na sign na makikita mo na mapapaisip ka na, ‘Uy, nasolve nga yung problema ko!’?“

How do we apply this?

For example, your problem is that you’ve been feeling too lazy to work. Or wala ka sa mood. Whatever it is, you’re just not performing like your usual self. Instead of spending hours, days, weeks obsessing about your mood, you can use The Miracle Question. Here’s an example of the internal dialogue you may have:

- Problem: I’m too lazy and distracted at work but don’t know why. My boss says I’ll be under probation if I don’t get back to my usual performance. 

- Miracle Question: While I’m sleeping tonight, a miracle will happen and my laziness/distraction problem will be fixed. When I wake up in the morning, what’s the first, concrete sign I’ll see as proof that my problem was fixed?

- I’ll be feeling excited to go to work.

- But that’s not good enough. It has to be concrete. How will I know that I’m excited? What physically happens when I’m excited to go to work?

- Well, when I used to be eager to work I would get up early, exercise for around 15 minutes, have breakfast, then commute before the morning rush. I usually left the house by 6 am.

- That’s the solution then: the “sign” is getting up early with enough time to exercise and leave before 6am.

- Yehey, gets ko na! From now on, I’ll wake up at 5 am!

See how it’s not about unearthing your deepest feelings about why you may be unmotivated at work. It’s not about pursuing an endless quest whether you should leave your employer or pursue a Master’s Degree in something else. It’s about finding that one small change that would make a large impact. No wasting time on emo nonsense.

And you know what? The above example ACTUALLY HAPPENED. Because I just did it this month (except for the commuting and “boss” part since I work from home, but I threw those in because that’s what most people do). I started waking up at 5am during weekdays – no matter how late I slept the night before. And I ended up crossing out every. single. task. on my calendar. It also improved my mood and motivation.

Here’s another example, from the book (emphasis mine):

Here’s how one couple in marital therapy answered the Miracle Question posed by their therapist, Brian Cade of Sydney, Australia:

WIFE: I’d be happy, feeling at ease at last. I’d be more pleasant to Bob, not jumping down his throat all the time.

CADE: What will you do instead?

WIFE: Well, there would be more understanding between us. We’d listen to what each other was saying.

HUSBAND: Yes. At the moment, we don’t really listen to each other. We just can’t wait to get our own point in.

CADE: How could you tell that the other was really listening?

WIFE: In the face, I think. We’d perhaps make more eye contact. (Pauses, then laughs.) We’d nod in the right places. Yes. We’d both respond to what the other was saying rather than just attacking or ignoring it.

Chip Heath; Dan Heath. Switch. Crown Business. Kindle Edition.

Notice how the therapist kept prodding on about specifics. What will they do differently. How can they tell that the problem was solved. These concrete questions are not about feelings, the past, or pag-e-emo. It’s about actual, physical signs you can see.

Let’s try another internal dialogue example, something more common than the above examples:

- Problem: I don’t have enough money.

- Miracle Question: While I’m sleeping tonight, a miracle will happen and my money problem will be fixed. When I wake up in the morning, what’s the first, concrete sign I’ll see as proof that my problem was fixed?

- I’ll be feeling rich, like I know I’m wealthy.

- But that’s not good enough. It has to be concrete. What does “wealthy” mean? What would have to physically happen for me to feel wealthy?

- I guess I won’t feel so stressed. I’ll be a bit more relaxed about money – not even worrying about it.

- What would make you stop feeling worried or stressed about money?

- If I felt secure about my finances.

- How could you tell that your finances are secure?

- If I know that whatever happens to me, my family can still maintain their current lifestyle or better from the money I’ve saved for them.

- That’s the solution then: the “sign” is having enough savings to support your family even if you can’t earn. The solution is that you need an emergency fund.

While The Miracle Question is not the be-all and end-all of problem-solving and behavioral change, it’s an important step that will help make your problems or challenges seem easier to handle.

Now’s the time to stop reading and nodding your head like those puppy figurines on a FX/jeepney dashboard. Let’s start taking action:

This Week’s Action Task

1) Think about the #1 problem or challenge that’s been holding you back. Choose the largest, most seemingly difficult problem you have.

2) Then, ask yourself The Miracle Question: If, as you slept tonight, your problem was resolved, what would be the first  small, concrete sign you’ll see in the morning as proof that your problem was completely resolved?

*NOTE: If you need help with this, just click here to start a dialogue at the comments section. I and the other Frugal Pinoy readers would be glad to help you out step-by-step to answer your Miracle Question.

3) Act to make that sign true. If it’s waking up at 5am in the morning, then wake up at 5am. If it’s smiling at your parents, then smile at them. No matter how seemingly unimportant or small, these “sign” actions can be the first tiny step in breaking down your biggest obstacles.

Here’s my answer and progress report for the assignment:

Inner Statement: “I’m not a people-person. It takes me years before I get comfortable with other people.”

Hidden Assumptions:
- That being a “people-person” is a natural talent that we are born with.
- That my personality is fixed/set, and it does not include starting conversations with acquaintances, strangers, and people I just met.

Challenges:
- Spend 1 hour this week reading up on building rapport
- Make initial eye contact with everyone I interact with, and hold it for 2 seconds. This includes cashiers, clerks, drivers, etc.
- Come up with 3 replies to the question “What do you do?”/”Saan ka nagtratrabaho?”. It’s a common question people ask me upon meeting, and my typical LAME reply is “writer” and “sa bahay lang” – and the conversation almost always stops there. I’ll come up with 3 replies to “test” in actual conversation, and see which replies get the most engaging dialogue.

Results:

- I listened to the following courses/resources on building rapport:

• Andrew Warner’s course on How to Interview. I want to learn how to interview, which is why I’m learning to build rapport in the first place.
• Neil Strauss’ interview on Mixergy. He’s a journalist who has interviewed celebrities like Madonna, Eric Clapton, and Lady Gaga. Learned a lot of tips from this interview, as well as another interview he did on Rise to the Top.

- It’s very hard for me to “switch off my programming” that automatically avoids eye contact, but I made a conscious effort this week. I may have missed a few people, but I was mostly successful.

- Since I work from home, I don’t have many opportunities to test the 3rd challenge, answering the question  “What do you do?”/”Saan ka nagtratrabaho?”. I was only able to test ONE response this week, “I’m a freelance writer, I work from home” – which again ended the discussion abruptly. Here are some other replies I’ll try next time:

• I help internet companies promote their products. (Which is what I do via Tailored Creative.)
• I teach other freelancers about how to run their business more smoothly and how to improve their client relationships. (via my articles at FreelanceSwitch, Pinoy500, and the upcoming LoveYourClients.net)

- – - – -

Inner Statement: “I’m not a programmer, I don’t need to learn programming languages.”

Hidden Assumptions:
- I don’t have the “talent” for programming, and can never have that skill.
- I will never use programming in my work/life.

Challenges:
- Finish at least 2 lessons from http://www.codecademy.com/
- Create a simple program that runs/works, even if it’s just based on a simple if/then function.

Results:

- You can check out my progress at codecademy here. As of this writing, I’ve completed the “Getting Started With Programming” course, and 36% through the JavaScript Quick Start Guide.

- I created a simple program – not super impressive – just something that asks for your name, and returns a different result/greeting for specific names.

- – - – -

How about you? What’s your progress?

Click here to let me know in the comments.

Also, get ready. Tomorrow I’ll publish Part 2 of our Best Year Ever series, about asking The Miracle Question.