27/10/2022
WHERE DID ALL YOUR MONEY GO?
Hereโs a little something to think about. 5, 10 or maybe ever 20 years ka na nag tatrabaho, MAY IPON KA NA BA? ๐ Maybe it's about time to reconsider your priorities. I just want to remind you that your income is not as permanent as you think it would be.
Last week, I shared about wasted opportunities and the cost of financial ignorance. Now, let me share with you about wasted money. Let's put this in figures so it's easier for you to visualize. Assuming that an average millennial earns P20,000/month, you can see from the picture below how much money you would have earned in a 20 year period.
Take note, my assumption is so conservative that we didn't even consider any salary increases, 13th-month-pays and other bonuses.
At an average, people are productive for 20-30 years. The sad thing is, in those productive years, instead of being able to set aside something for their savings they end up with low savings or no savings at all and are highly indebted.
Why?
Because most of us use this type of budgeting:
โIncome โ Expenses = Savings --- I call this the poverty formula.
The problem with this formula is that right after you receive our income the very first thing that you prioritize are your expenses - bills, basic needs, rental or monthly amortization, travel/lifestyle, and all other imprudent or unplanned expenses, which more often than not goes beyond what you actually earn thus, you end up with no savings and sometimes even a deficit. Mind you, this can only be stopped if you make the conscious effort of reversing it.
My tip, paulit ulit ko na din 'tong nashare, use
โ
The Abundance Formula:
Income โ [Tithes (10%) + Savings (20&)] = Expenses.
Let's put it in figures again:
IF you are earning 20,000 per month, 20% of this amount is P4,000. If you set aside and invest P4,000 per month in the next 20 years, guess what: you can have at least P3M worth of protection and investment. I repeat over P3M.
Ang tanong na ngayon, bakit mo ba kailangan mag ipon?
Subukan mong sagutin nalang yung mga tanong na 'to:
1. Is your income temporary or permanent?
2. Are your responsibilities (food, bills, clothing, health, etc) temporary or permanent? Who will pay for them if wala ka ng pera pag tanda?
3. Are you expecting your children to take care of you at your old age?
4. Do you plan to work beyond the age of 65?
5. Enough na ba yung SSS at Philhealth to sustain you by the time you retire?
6. (Medyo harsh) Do you honestly think you won't live too long? What if you do?
7. Wala ka bang malaking pangarap?
The comfort level of your life is up to you. The choice is in your hands? Will you keep on wasting your money and opportunities? Or will you finally make the decision to do something today that your future self and your future family will thank you for?
Feel free to send me a personal message if you have questions. ๐ Also, attend our FREE Financial Literacy classes so you can get out of your โNo Savings High Debtโ cycle.
Credit to : Ms. Chai C Santiago
