FRUGALITY: The Easiest Way to Earn Money Part 1

Want Extra Income?
Of course, most of us do. Now, let’s ask ourselves this question:

“Aside from my paycheck, what is my other source of income that puts money in my pocket?”

Achieving that secondary source of cash in-flow requires you to take a lot of steps, a certain period of time and horrendous headaches. Not to mention the risk and frustrations in the event that instead of “earning”, we end up losing much more. Too bad huh?

It’s hard, but it is not impossible! if you’re aiming for Financial Freedom, acquiring these cash generating assets are the keys toward fulfilling your goal. And one of the keys to attain this is to embrace frugality as your way of life – habitually saving money and cutting down unnecessary expenses to fatten your bottom line.

Mind you, I understand that some of us see the habit of saving as something that only the poor people do. Frugality seems to be unglamorous compared with the glitz of running your own business, franchising and investing.

However, do we really have the Capital, Knowledge and Connections to acquire all of these? Are we really ready to roll-up our sleeves and get our hands to work?

Today, let’s take a look on the steps on how to earn additional dough and then compare it with the steps on saving money & living frugality/


For employees, the ways in which we can glean money from work are through:

1. Over-Time (OT) Pay – Rendering additional time at the office.
2. Referral Bonus – Head hunting and sharing other people’s resume for your HR department.
3. Leave Encashment – Not availing all of your sick or vacation leaves in order to encash it at the end of the year
4. Salary Increase – Do an excellent work then negotiate for a much-deserved pay raise.


Same thing if you’re investing in any financial products like Stocks, ETFs, REITs, Bonds, Mutual Funds and many more. To begin, you have to put in your hard-earned money, spend hours researching on which would be the most profitable shares of tomorrow and then patienly wait to receive your most awaited dividends and capital gains. (After the government take a slice of tax of course!)

Be aware that there is a certain degree of risk, depending on what financial vehicle you are in. Your extra bucks may take months, years or even decades (if there was a local bourse crash) to be finally in your pocket.


Same hardship goes even on embarking to the Business foray:

Rental Income

– Acquiring a Rental Condominium property, say 2 BR unit in Makati, requires you to pay 20% of the sales price (either on cash or installment basis).

For this, you have to shoulder the risk of having a bank loan to pay-off the remaining 80% and then find good tenants that won’t ruin your property before they hand you out your very first cash in-flow.

The ROI on this specific type of real estate investing and property may take you more or less 20 years, so consider this to be your long-term investment. All of these so you can enjoy a P10,000 to P30,000 rental gross income (other fees not deducted yet).

You can try flipping vacant lots/houses/apartments/foreclosed properties or so on. But in order to do so, you need to have a Real Estate Broker license (which also costs additional time, money and skill to acquire)…

— Oh teka teka! Awat muna sa pag-babasa!

Ipagpapatuloy natin ang article na ito next week kaya subscribe na kay Mang Stocks: Ang Kwelang Guide sa Iyong Financial Life!

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