#1 Never Take Peer and Cultural Pressures Lightly
It was an Aha! moment for me.
I read about it in blogs and books but never seen determinism presented by comparing cultures: Filipino to Chinese, Indian, and Jewish cultures. Very enlightening.
Filipinos think everything that happens has to do with God. A quick look at history of colonialism in the Philippines is very helpful.
Another thing is what TV does by continuous emersion. This mode of mind conditioning is done every single day more than 8 hours a day for life. Some of my friends keep asking me why I keep on reading new and old books on personal finance. This is why.
We are up against that box on the wall that we allowed to control our brains very consistently. And it will be a challenge to compete with that without replacement. At some point, consumerism must be broken until passive income capacity is built. Otherwise, life will always be limited, extremely dramatic, and full of struggles.
Environment is something that can't be ignored. Our choice of friends, the community we live in, a spouse, and those we chose to spend time with, somehow dictates our behavior the same way TV does. Consider longterm effects of these, best practices, and how these if not interrupted may ensure failure and frustration in your future.
#2 The Secret to a Happy Life is a Happy Wife
Filipino culture is heavily influenced by western consumerism. According to surveys, the no. 1 goal of the poor is to be entertained, and the rich prioritizes education.
In the accumulation stage of wealth building, turning a blind eye on overspending and debt is not only counter-productive but a real struggle which may lead to an even more expensive breakdown in the relationship. A split may be quicker when both are financially illiterate.
These are proven very expensive outcomes with a direct hit in accumulation efforts. Therefore it makes a lot of sense for couples to get themselves a little financial education. Learn each other's VALUES, be in the same page, the right page altogether to accomplish goals as a team.
Relationships can be complicated and challenging. One may only control one's self and choices. And this is why most the affluent first-generation dollar multi-millionaires in the book The Millionaire Next Door by Thomas J. Stanley are married to frugal women. You don't really need that much to love and please these types.
In the accumulation stage of wealth building, turning a blind eye on overspending and debt is not only counter-productive but a real struggle which may lead to an even more expensive breakdown in the relationship. A split may be quicker when both are financially illiterate.
These are proven very expensive outcomes with a direct hit in accumulation efforts. Therefore it makes a lot of sense for couples to get themselves a little financial education. Learn each other's VALUES, be in the same page, the right page altogether to accomplish goals as a team.
Relationships can be complicated and challenging. One may only control one's self and choices. And this is why most the affluent first-generation dollar multi-millionaires in the book The Millionaire Next Door by Thomas J. Stanley are married to frugal women. You don't really need that much to love and please these types.
#3 Zero Debt is the New Status Symbol
TV and the constantly aggressive marketing campaigns by businesses and the banks created the belief that accumulating debt like a pet (snake) is just the way we should run our lives. We can't live without it. This is true (for misinformed free-spirits). And buying everything now and working for it 'later' is the way. Wallah of course.
How could anyone borrow from the future? This is normal, right? And guess what, what we've been told in AFPDoha is that we build and protect our bright future from today, not borrowing and sucking from it. Get this, we've been told to 'save' to become 'savers', then become 'investors'. How weird can that be?
How could anyone borrow from the future? This is normal, right? And guess what, what we've been told in AFPDoha is that we build and protect our bright future from today, not borrowing and sucking from it. Get this, we've been told to 'save' to become 'savers', then become 'investors'. How weird can that be?
And if you don't have this so called 'savings', you don't buy anything. Would you be surprised if one of those AFP slides actually says: Zero debt is the new status symbol! Not your brand new house & car purchased with debt, and other similar fake appearances of wealth.
The 20/20 rule suggests it requires around 20 years to conveniently prepare for a 20-year retirement. What it says has to do with the value of time by compound interest in investing.
I went back to review annuities not long ago to convince myself of the awesome power of compound interest told by Albert Einstein. But it needs at least more than 15 years to see profits fly off the runway so to speak. This is why starting early in so called 'saving' and 'investing' is very very important.
Having said this, it is important to emphasize that what makes it happen, and what really drives build up of funds is the money that you allocate for investing. It is not so much about compounding profits. Sounds really confusing but what do you expect from small things?
Earn as much as you can. Save and invest as much as you can. Avoid getting lured into instruments promising high returns. Take the time and get rich slow. Remember this is a marathon not a sprint.
#5 Anticipation Creates Peace
Learning the goals of insurance planning fills in that spot in your
financial plan under the umbrella of protection. The important lesson is
that while one is in the accumulation stage, the targeted goals in your
retirement plan including immediate needs and educational needs of your
children, may be covered by products known as insurance.
It has been said that we work to build our Retirement Fund not only for ourselves but most importantly for the chosen ones. We work using just one physical body without spares. This is a clear risk, and insurance gives you and your chosen ones the peace and confidence to live the life you intended for them, with or without you.
#6 Take the OFW Advantage
Working in most GCC countries means you are earning a rare type of income which governments didn't need commission from. Governments in GCC are not needy. They are rich. Very rich and very generous.
Working in most GCC countries means you are earning a rare type of income which governments didn't need commission from. Governments in GCC are not needy. They are rich. Very rich and very generous.
Do you remember how it feels like checking your pay slip with zero chances of actually cashing it all from the ATM? That is because you don't really get all of it. The Philippine government takes its part first before anyone else. You get taxed.
Remember how we got used to it, gotten over it, and eventually accepted it was reality mga bess.
This is proof we can LIVE BELOW OUR MEANS inspite of the low salary were getting sa pinas. Now that we are here in GCC, let's take full advantage of this rare opportunity and immediately divert it to savings. This can be a real blessing.
Remember how we got used to it, gotten over it, and eventually accepted it was reality mga bess.
This is proof we can LIVE BELOW OUR MEANS inspite of the low salary were getting sa pinas. Now that we are here in GCC, let's take full advantage of this rare opportunity and immediately divert it to savings. This can be a real blessing.
#7 Not all Insurance Plans are created equal
We learned several types of insurance plans in the market: both life and non-life insurance. Not all of them are the same in the sense that some of them are good, some are obsolete, others are scams. Marvin Germo taught us how to do simple math I call the bloody IRR Method to verify the level of stupidity of insurance products.
The lesson here is that part of your due diligence as an investor is to ensure that what you are getting won't be a waste of your time and money. Talking to insurance agents in my experience doesn't work. They are of course looking for their own interest which is commission. Consult an independent financial planner. They will tell you the latest chika in the world of insurance.
We learned several types of insurance plans in the market: both life and non-life insurance. Not all of them are the same in the sense that some of them are good, some are obsolete, others are scams. Marvin Germo taught us how to do simple math I call the bloody IRR Method to verify the level of stupidity of insurance products.
The lesson here is that part of your due diligence as an investor is to ensure that what you are getting won't be a waste of your time and money. Talking to insurance agents in my experience doesn't work. They are of course looking for their own interest which is commission. Consult an independent financial planner. They will tell you the latest chika in the world of insurance.
#8 Hang sarap pala maging Single..
During a talk on insurance planning, an example was given to analyze protection needs for a family of three children showing a huge chunk of expenses allotted for child expense, living expenses, and education. Those numbers are not at all a joke. It is a huge responsibility.
During a talk on insurance planning, an example was given to analyze protection needs for a family of three children showing a huge chunk of expenses allotted for child expense, living expenses, and education. Those numbers are not at all a joke. It is a huge responsibility.
Looking closer, and trying to fit in the shoes of those married dudes with lots of children and mediocre income, it's not hard to imagine the AGONY. This is perhaps the reason why Covey thinks building a family and raising kids is hard farming lol. I really don't know but better be prepared than sorry.
On the other hand, Pag nachugi kang bigla at alam mong walang iiyak (if you die unexpectedly and you know no one really cares): is great news! You're looking at a huge savings in life insurance which can be diverted to other growth or business funds. An exception applies to bread-winners and martyrs.
To all singles, my self included, may awa pa si Lord according to Randell Tiongson. However, sifting through all the kantyaw and panglalait of your friends and relatives as per previous paragraph, gives you a reason to build suspicion. Why do you think they're doing it? Are they really concerned or just looking for katabla? lol
No comments:
Post a Comment
care to share what's on your mind? write it here!