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Monday, March 12, 2007

What's up?

This post is a sort of recap, and would try to answer the question: what's up? how am I doing? This was because, I recieved an email from my KSA e-group asking me: "What happened to you?"

If you have been following my blog, you already know that I finally decided to leave my job in KSA for reasons detailed in my earlier posts. That was in June 2006, and I have been sort of "jobless" for the past 10 months. The easiest question then is " how am I doing financially"; and "what happened to your plans".

My answer is, I am doing great!

Over the past months, I have realized that I have to divide my "assets" into expandable, and consumable, whatever that means.

My consumable assests are those sources of money that I would use for daily expenses, bills, booze, etc. and currently these are:

1. Adsense, I have decided to move to DHL, better safe than sorry. For this year (Jan, Feb and March 11), I earned more than 40K in pesoses. I also earn from links sold, of course.I hope to grow my adsense income slowly until December.
2. My transportation business, adding 9K a month.
3. My fish retail financing, adding 8K a month.
4. Copra income, adding 2.5K a month
5. School supplies shop, adding 7K a month.

I now live on a tight budget. I must never spend more than what I earn from above.
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Now, about my expandable assets. Thus far, my assets on this category are those that are into Agri-Financing. This business model is very simple. I give loans to rice farmers, the loan is secured by their land title, they farm their land, and they pay rent to me every cropping.

The capital for this business was obtained from a bank loan, coupled with the huge chunk of my savings from working in KSA. I tried making it a cycle, and benefit from outside financing, and earn from interest differential. What I mean by cycle is that, I pay all my loans every six months (obtained at 12% p.a.), obtain another loan again, which I re-loan to farmers (at a shameless interest rate, but much lower than the on-going rates, nakakakonsensya kasi, hehehe). I pay my loans completely 2x a year to create a good credit record, which hopely, would translate to a higher credit limit, which hopely would translate to a higher income for me.

I made a spread sheet for this, and hopely by 2010, I expect to earn around 1.1 M a year on interests alone, excluding the capital.

Risks, of course, there are huge risks, but then, I would choose my clients carefully, and all loans are secured by their land titles.

This is the life gamble that I have entered myself into: my own business, on my own terms, with the possibility of unlimited earning potential vs a secured high paying job, far from love ones, with a "masungit" Saudi Boss, hahaha, take a pick. I actually have decided to declare my freedom, the first day I started my KSA stint - economic freedom was my goal. So, what happened to me? "I am no longer a modern desert slave"...nuf said. My life is my choice.

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These are all passive source of income. Fact is, a big chunk of my time is spent on the internet, on my blogs, on games, and lakwatsa. I also spend around 20% of my time in all of these miniscule investments.

As a side note, I was also offered two jobs for the past 10 months which I declined. I just dont want to work, maybe until December 2008, and I want to see what would happen to me. Would I perish or prevail? Also, I just want to live on my own terms, no Bosses, no waking up at 7 AM, no hassles, no office politics, no commuting, no traffic etc.
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I am not disclosing here my earnings from forex and metals trading. However, when it hits really big, I will make a post.

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Now to my dear friend, "What happened to me?" I am doing great! Maybe soon, it will be my chance to ask you the question, "What happened to you?" hahaha.