by Table of Contents
Anyone who says that they aren’t dreaming of becoming a millionaire is lying. But If everyone dreams to become a millionaire, then why do millionaires comprise only 1 tenth of the population?
There are a lot of contributing factors that affects a person’s ability to amass wealth, and as one might expect, the answer isn’t straightforward.
If there’s one thing that is certain though, it’s that hard work and perseverance are important parts of the success equation.
Hard work separates the dreamers vs those who are actual millionaires. Everyone dreams, but only a few are willing to take risks to actually pursue that dream.
Don’t get me wrong, I’m not saying that hard work is the sole, primary factor. We also have to take into account your connections, your skills and talents, the role of luck (being at the right place and the right time), and most importantly, your financial management skills.
But even if we keep those factors in mind, is it still possible to earn millions in the Philippines where average incomes and minimum wages are significantly lower than the rest of the world? How hard will it be to earn your first million in the Philippines?
How can the ordinary Filipino earn or save up for their first million if they’re struggling to pay their bills and are living paycheck to paycheck?
In this post, I’ll talk about ways on how an ordinary Filipino can earn their first million.
Focus on your skills and find a way to monetise them
Starting from scratch and pulling yourself up the bootstraps to your first million is of course the most difficult part. And for the majority of Filipinos, access to capital is not an option. If you lack the resources and capital to start a business, don’t fret! Because the most valuable resource is YOU.
Reflect on your talents, skills, and things that you know what to do.
Ask yourself the following questions:
- What am I good at?
This could be anything- from skills like painting, drawing, gardening, etc. to specialized skills that you learned in college.
- What do I enjoy doing during my free time?
Your passion is something that you enjoy doing even if you do it for free.
After asking yourself those two questions, the next step is to combine those that you’re good at with the things that you enjoy doing during your free time then, find a way to monetize them online.
Sell online
Example 1: You’re good at doing digital paintings, and you enjoy browsing memes on social media. These two don’t really sound lucrative and some might even argue that it’s a complete waste of time.
But contrary to what most people would think, there’s a massive opportunity in this case.
This person could start a social media meme page that showcases his/her digital art. If she builds up a significant number of followers she can start an Etsy store where she can sell her original merchandise, digital art, prints, etc.
Become a content creator
Example 2: You’re good at making people laugh and smile and you enjoy watching funny youtube videos on your free time.
The opportunity: create a youtube video showcasing your comedic talents and grow your subscribers. You can pretty much talk about anything or you can focus on a niche that you’re passionate about. Build a brand and earn from advertising revenues.
Some examples of youtubers who started from scratch to finding their way to massive success are: Mimiyuh, Lloyd Cafe Cadena, and Ja Mill to name a few.
See: How Do Youtubers Earn Money?
Start a blog
Example 3: You’re a prolific writer and you enjoy travelling as a hobby.
Opportunity: Start a blog in the travelling niche. Partner up with hotels, resorts, find promos, or become an affiliate!
Bottomline: Become a creator and a contributor of value, rather than just being a consumer. Take advantage of different social media platforms and e-commerce websites to earn passive income.
Have multiple streams of income
If you want to become a millionaire, your 8-6 day job won’t suffice (except if you’re a top manager or executive in a multinational corporation in the Philippines).
But since majority of the Filipinos are middle income earners, it’s realistic to assume that you won’t earn your million in YEARS. And that’s also assuming that you keep 90% of your salary.
Let’s be real, it’s a seemingly unattainable goal for most Filipinos, because if you take into account the bills that you have to pay, or emergency expenses, taxes, inflation, etc.- their purchasing power and the value of their money decreases over time.
People who have day jobs have capped incomes. This means that your salary is dependent on the number of hours you’ve spent working in the company. If you don’t work, you dont get paid.
And of course there’s also a risk of losing your only source of income due to unexpected lay-offs- as in the case with the Covid-19 pandemic with the global economy tanking causing millions of people all over the world to lose their jobs.
See: The Secret to being Rich: Passive Income
Look, I’m not saying that people should just quit their jobs altogether and start a business. That’s too risky especially if you don’t know what you’re doing and if you don’t have a back-up plan.
If you want a steady flow of income, you need multiple streams or sources. You need Passive Income.
What is Passive Income?
Passive income is making money while you sleep. Passive income runs on its own. You don’t have to work the machinery all day, but you just have to add fuel to the system to make it work seamlessly and automatically.
Aside from your 8-6 day job (which is a form of active income), you can delve into other passive incomes like blogging, owning a youtube channel, creating an etsy store or a dropship e-commerce website, becoming a Shopee or Lazada seller, etc.
All of these online passive income streams run 24/7 and they can be automated. You’re earning while sleeping, or even when you’re attending to your day job.
You can also have passive income streams in the form of traditional brick and mortar stores. You can become a retailer, or a supplier for different merchandise, or you can be a supplier for markets, or you can focus on B2B (business to business) channels.
Here are some of the best small business ideas in the Philippines.
Financial Management
Your ability to properly handle your money is a major determinant of whether or not you can earn your first million.
Here are some tips that you can follow:
A. Budget your monthly expenses
Write them down and monitor your utilities in order to lower down costs.
B. Invest in stocks, ETF’s, mutual funds, or bonds, etc.
Do not put all your eggs in one basket
-Warren Buffet
Do not allocate 100% of your money in one portfolio because there is always a risk involved in the stock market. Only risk what you can afford to lose. Educate yourself about risk management and gauge if your goal is for the short-term or long-term.
C. Spend less than what you make
Living above your means is a surefire way to poverty. Your goal is to create actual wealth and not “imaginary wealth” that people tend to show off on social media.
D. Get out of debt
Debts aren’t automatically a bad thing especially if you used it to expand or grow your business. But if you incurred debt in order to purchase the latest Iphone, or PS5, then that is certainly living above your means.
A debt free life is a stress-free life.
If you have debts, pay it off as soon as possible to avoid paying high interests.
E. Avoid get rich-quick schemes
There is absolutely no short-cut to success. If you encounter anyone who tells you that they can EASILY multiply your money in a span of a short period of time, then more likely than not, it’s a SCAM.
Do diligent research before investing in any project, product, or company. If it’s too good to be true, listen to your gut and DO NOT invest.
There are a lot of pyramid schemes under the guise of legitimate companies that promise people that they can multiply their money by tenfold. Avoid them at all costs.
