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MY EXPERIENCE | MY EXPERTISE

Category: Money

  • Your wealth isn’t for you

    Your wealth isn’t for you

    “Wealth is something you build, and you don’t do it for yourself. You build wealth for your family.”

    Painkiller is a limited series on Netflix. It is a story about how Oxycontin was abused and killed many people in the United States. The drug is the trade name for oxycodone that is used to treat moderate to severe pain.

    The series was told through the character Edie Flowers who is the federal investigator who unravels the danger brought by the drug created and sold by Purdue Pharma. The company worked with Curtis Wright from FDA and was able to sell the drug in spite of knowing it is highly addictive and can cause death.

    I am not writing to talk about the show. I am writing because of the line (in the first paragraph) in one of the episodes when the young Richard Sackler was talking to his uncle, Arthur Sackler (played by Clark Gregg).

    Richard Sackler, played by Matthew Broderick, led Purdue Pharma to successfully sell Oxycontin and win every battle that prevented them from distributing it.

    Arthur Sackler, the person who started building wealth through the effective marketing of medicines, was clear on this when he asked Richard’s father to return the diamonds he bought.

    Does having nice things mean you are wealthy? Do you even need to flaunt your richness and what you can afford? What does it really mean to be wealthy?

    This is what I want to talk about.

    What is wealth?

    Wealth is attributed to net worth in terms of monetary value. However, wealth is not just about money or possession. It can also be about abundance of something. It could be friends, knowledge, health, or anything that contributes to to our well-being.

    For the purpose of this blog, I am going to stick to its meaning in relation to monetary value. That means, this is going to be about being wealthy by having an abundance of money. Additionally, this is going to make us realize that building wealth is not for ourselves but for family and future generations, just like what Arthur Sackler said.

    Before we go any further, let me take you through what monetary wealth is all about and how is it determined.

    Wealth is net worth. It is the difference between your assets and your liabilities. Assets are things you own that produce income. For example, when you buy stocks and you earn dividends, the stock is considered an asset. Or a house you own and you are renting it out, it is considered an asset as it generates rental income. In short, and again, anything that produces income for you can be considered asset.

    Savings and insurance may be classified as assets as they produce monetary value more than what it costs you. It maybe small or take a while but still considered as assets.

    Liabilities, on the other hand, are things that create expenses or debts. These, in comparison to assets, make you lose money as you pay out these expenses and debts. Some examples are cars that you use for personal concerns and the house that you live in by paying rent, amortization, or mortgage. The credit card and utilities bills can also be considered as liabilities.

    The difference between assets and liabilities is net worth. The bigger the positive difference, the wealthier you are. And of course, if it is a negative net worth, meaning the liabilities are higher than assets, then you are not wealthy. You are just poor.

    This is just one way to measure wealth. Let us keep this in mind while we go through this blog.

    Not for you

    Building wealth takes time. It takes years, decades, or even generations, to have a significant amount of it. Of course, there would be people, like Arthur Sackler, who made his wealth during his lifetime by selling medicines however, he was not the one who enjoyed that wealth.

    Our children. Our children’s children. The next generation. Our descendants. These are the people who will enjoy the fruits of our labor when we build wealth. They get to experience the most comfortable life. They get to enjoy the best of what life has to offer. They are the ones who will benefit the most from what we have built. They are the ones who will take advantage of whatever amass of money of fortune we have left behind.

    And if that is not your reason for building your wealth, then you will never be able to do it.

    Quick bucks. Rich overnight schemes. Be rich now. This type of mentality is what keeps us where we are now. We want to get rich quickly. We want to have more money. We want to have a big bank account. So we could all feel rich and afford the luxuries in life. With this mindset, we are all so focused on the now. While we intend to leave what we gain to our children, at the back of our heads, we still say it is mine, and we are entitled to enjoy the fruits of our labor, now.

    Additionally, with this kind of thinking, we are reluctant to build our assets. For example, life insurance is an investment that costs you buy will provide benefits and rewards to your family. Or buying stocks that earn 10-40% interest in a span of 10-20 years but we are not willing to invest because by the time it earns it yields, we are already dead. How do we enjoy that then?

    Wealth is for others

    My wife and I started with 0 savings. We rented out an apartment with our son with us draining what we had in our bank to start our own lives together.

    Her mom died with her grandchildren without a home. They were kicked out of the house they were renting and they had to look for another place. They are now living in a house owned by my father-in-law’s sister.

    Things like these are a wake-up call for us. We are now on a mission to ensure that our children, our son, and two daughters, will have their own house that they can call their own. We are also working on keeping our savings and investments up so that they can use them to live the life they want without worrying about where to get the money for tomorrow’s food, which we had been through.

    We have also life insurance that has them as beneficiaries. Whatever happens to us, they will give them a substantial amount to support their lives and stand on their own if we leave this world early.

    Going beyond that, our investments are targeted at earning money for their children too. It may not be huge now but it will definitely be a very substantial amount of money for their children and their children’s children.

    On top of this, we try to instill in them the value of money. We try to teach them the purpose of buying. We do, as much as possible, show them a balance life between enjoying luxury and when to spend only for the need. Be frugal.

    Build it for others

    In summary, the wealth you are building is not for you. You must think about the future generation. Look back and see your struggles. Are those things you would like your descendants to experience too? Because if so, then the world will not progress.

    Bong Ravena, a famous Philippine basketball player, played for the University of the East (UE) in college. He was asked why did he enrolled his sons in other schools to play basketball instead of UE. His answer was he wanted to give his children better education.

    That is an example of giving your children the advantage in life that can be your legacy. It is not about having them experience what you have gone through. It is about giving them an advantage to better thrive in life.

    And that is what it means when we say wealth is not for you. You build wealth for your family.

  • Having a credit card may be for you

    Having a credit card may be for you

    Credit card headaches

    Often times, we think credit card is extra money. Before even receiving our salaries, we have already planned out how to spend it down to the last cent. These vary from paying monthly bills and allocating allowance for our daily expenses to picturing us buying something that we wanted or have in our carts on shopping apps.

    Having a credit card makes us spend now and pay it in the future, considering that we are planning on paying it. This adds up to our money allocations and sometimes, puts our budget at risk. Most of the time, we had already spent more than what we are going to earn. In effect, we adjust and most of the time, we do not pay the full balance of the credit card.

    A lot of articles and blogs online will tell us to pay our credit cards in full because it creates a rolling interest month on month that makes the total amount to be paid higher than what we have used it for. This is good advice and there are also advice of strategies for those who can not pay in full.

    Having a credit card is not having extra money. It is a passage to get a loan from the bank. A loan that you can use now to buy almost everything you want and pay for it sometime in the future. A lot of people think that having this plastic thing would make life more comfortable since they can buy what they need. In the end, if they do not have the money to pay for it, it only hunts them and takes away their good night sleep.

    So, if a credit card can create these types of problems, why even use it? What benefit could we get from it if it would just cause headaches for us in the future? Why use it? Why even have it?

    Benefits of credit card

    I recently had a short conversation with someone who does not have a credit card and only uses a debit card for any transactions. This person mentioned that she does not want to have any debt to pay and rather use her own money. If she does not have any, or not enough, she would rather wait instead of taking a loan from a bank.

    Good. That is really good. Her understanding of credit cards is very clear. It is not extra money. It is a loan. A loan that must be paid. If not paid, it will incur interest. That interest compounds and if the loan is not paid, eventually, the amount will be be higher than what is owed. It can also become twice as much.

    However, there are also good things that can come out of having and using a credit card. And all of these could be capitalized if it is being paid regularly. Regularly means paid in full and not incurring interests. Below are some of the advantages:

    • Physical security. The street could be a dangerous place depending on the neighborhood. Bringing cash could endanger your finances once someone mugs you. A credit card can be stolen but you can easily lock it by calling your bank safeguarding any expenses charged by any mugger. Having physical cash stolen is done deal. It can not be recovered, most of the time.
    • Discounts. Some establishments offer as much as 50% discount on purchases if a certain credit card is used. This creates savings as instead of getting the full price, you can get it for a much lower one.
    • Points for perks. Some credit cards offers a point system wherein you can earn point and exchange them for something else like plane tickets, grocery items, etc.
    • Cashback. There are also credit cards that will return a percentage of the amount you purchased as cash. This means that you could use the cash to reduce the amount you need to pay. In effect, it is a discount too.
    • Online purchases. Although this is a risky transaction, most international purchases require a credit card. With everything global now, this helps us reach commodities that were previously hard to get.

    Some of these items can be provided by debit card (like physical security and online purchases) however, a lot of advantages are unique to create a credit cards.

    A tool, not extra money

    But, a credit card is not extra money. That needs to be established and understood prior to getting it and using it. It is a loan that needs to be paid. It is asking the bank to let you use their money now and pay it back in a future time.

    A credit card is a tool. It is a means for us to purchase what we need and want. It makes it a little easier. It makes certain things reachable.

    Since it is a tool, it only becomes bad depending on how we use it. If we keep using it without any money to pay for the loan, then that is misused. If we keep using it and paying only the minimum balance, it will include interest. It only means we do not have the money to pay for it. So why use it?

    Use a credit card only if you have the money. You’ll see a lot of that message in any articles and blogs online. If you do not have the money to pay for it, do not even think of using it.

    Use it to make your life better not worse. It is a tool for us to use to have some comfort in life. If you think it is the solution to a problem, then you are mistaken. Use it to your advantage. Use the benefits. Let it help you make things better instead of losing a good night’s sleep.

    A credit card is not extra money; it’s a loan from the bank that must be repaid. It should be used as a financial tool to make purchases more convenient and accessible, not as a means to spend money you don’t have. Misusing it by only paying the minimum balance or using it without the means to repay can lead to debt and interest accumulation. The key is to use a credit card responsibly—only if you have the funds to cover your expenses—to improve your life and enjoy its benefits without financial stress.

  • Life insurance is not for you

    Life insurance is not for you

    Life insurance is a cost. It is not going to make you rich. It is not for you. It is for the loved ones you leave behind.

    As a breadwinner, a lot of people are dependent on you.

    Being the provider, the life you have given the people around you is highly based on what you bring home. Not to mention that before achieving the quality of life they have, their basic needs like food and shelter are all taken care by you.

    This is a good thing. You or you may not have committed to this but being someone that makes their life comfortable means everything to them. You bringing home the bacon spells out the difference between having a good life and a surviving life

    However, have you thought of what will happen to them if you are not able to do so? Will they still have the comfortable life they have right now? Will they even survive without the money you bring home? If not, how does that make you feel?

    No one sees the value of having life insurance until it is needed.

    It is a cost that a person needs to pay at least every month to ensure that by the time the insured is gone, there is money left for those he (or she) is supporting.

    It was said that the time to use life insurance is something that we wish would never come. Of course, the trigger for using it is you have gone from this world and have transitioned to a good place whatever is that in your religion.

    Moreover, the benefit of having it is not immediate. It is not for you to get wealthy. It is a cost. It is not for you to spend. It is for others. And it will not grow money for you but instead, give money to those you live behind.

    It is for other people.

    …that is the real reason behind having life insurance. It is for those you love. It is for them not to worry about where will they get their food. It is for them to have a decent start on their own without any struggles.

    The comfortable life you had given them may be gone and they will have to find a way to support themselves but, starting from zero would really put a lot of stress on them and they would have a difficult time adjusting.

    But, if you leave something behind for them to start with, then they will be able to recover in no time. It will give them enough time to adjust and find ways to at least bring food to the table and eventually have the comfortable life they once had.

    A lot of us see life insurance as a cost and something we cannot afford.

    Though there are affordable ones with good returns for your loved ones. I have a couple with my insurance agent who had been very helpful and some of my friends also got their from him.

    Look at it as something you buy because of value. The value it will bring not to you but to those you support and provide for. It is a cost, sure, but it is also important. You are able to buy stuff right now that you do not need, right? Why not this?

    Rethink. If you are a provider, your loved ones need it. Again, you are not the one who will benefit from it, others will. The people you love. So assess and get one as soon as life passes by in the blink of an eye. You have to ensure that even on the other side, you are still able to provide for them and still are the breadwinner.

    Being a breadwinner is a role that comes with immense responsibility and an underlying sense of duty. It’s a role that many embrace with pride, knowing that their hard work and dedication are the pillars supporting the well-being of their loved ones. The comfort and security you provide as the main provider are the foundations upon which your family builds their lives. Your efforts ensure that their basic needs—food, shelter, and safety—are met, allowing them to pursue their dreams and aspirations.

    The role of a provider is often a silent commitment, one that may not have been explicitly agreed upon but is nonetheless recognized and deeply appreciated by those around you. The difference you make is tangible; it’s the difference between merely surviving and truly living a good life. Your contributions are the threads that weave the tapestry of your family’s daily existence.

    Yet, it’s crucial to ponder the fragility of this arrangement. Have you considered the impact on your family if, for some reason, you were unable to fulfill this role? Would they be able to maintain the same level of comfort without your financial support? These questions are uncomfortable but necessary, as they highlight the importance of planning for the unforeseen.

    Life insurance is often overlooked until its necessity becomes a reality. It’s perceived as an additional expense, a monthly cost that seems to offer no immediate benefit. However, the true value of life insurance lies in its ability to provide for your loved ones in your absence. It’s a safety net, ensuring that even when you’re no longer present, you can still offer them protection and a means to sustain their lifestyle.

    The decision to invest in life insurance is not about seeking wealth or personal gain; it’s a selfless act of love and foresight. It’s not an investment for your own enrichment but a provision for those you leave behind. Life insurance is about giving your family the peace of mind that they won’t have to worry about their next meal or struggle to find their footing without you.

    The loss of a breadwinner can be devastating, both emotionally and financially. Without a safety net, your family might face the daunting task of starting from scratch, a challenge that can be overwhelming and fraught with stress. But with life insurance, you can leave behind a legacy that helps them regain their balance, providing them with the means to bridge the gap until they can stand on their own again.

    Many view life insurance as an unaffordable luxury, yet there are options available that offer significant benefits at a reasonable cost. It’s about recognizing the value it brings—not to you, but to those you care for. It’s about prioritizing their future over immediate gratifications. If you can afford non-essential purchases, then surely you can consider an investment that secures your family’s future.

    It’s time to reassess your priorities. As a provider, your loved ones depend on you not just in the present, but also in the future. Life insurance isn’t for your benefit; it’s for the benefit of those you cherish. Take the time to explore your options and choose a plan that aligns with your family’s needs. Life is fleeting, and ensuring that your loved ones are taken care of, even when you’re gone, is the ultimate act of love and responsibility. Secure their future and uphold your role as the breadwinner, in life and beyond.

  • Live within your means | Save some

    Live within your means | Save some

    Live within your means is something we have heard of a lot. But what does it really mean? And how could it really help us without sacrificing how we enjoy life now?

    How do you spend your money?

    What things do you buy from it? How satisfied are you with how much money that you have now? Is it enough? Do you still need more? Is money really evil?

    He started working in a BPO company way back in 2004. For those of you who doesn’t know what a BPO company is, it is a contact center where customer service representatives, or agents, answer or make calls, and reply to emails or chats, of customers. BPO stands for Business Process Outsourcing.

    He started as an agent. He made sales calls to potential customers. He answered calls from existing customers about account information. He troubleshoots on the phone any desktop or laptop issues a customer has.

    The pay was okay. He was able to support his wife and son back then. They rented a small apartment which is about 5 minutes walk from his office. They were able to spend weekends in the mall. They were okay.

    But they are just okay. Meaning, that his salary was all spent for the entire 15 days, and needs to wait for the next salary to get credited so he could continue to support his family. And then, one day, the salary was delayed due to bank issues. They had no food. No cash on hand. Nothing. He had to look for his collection of old foreign currency bills and had it exchanged for local peso which was a meager Php100.

    The guy in this story is me. We never had money before. It was a struggle. It was very difficult. We can’t go out with friends when we want to. We can’t go to any restaurants or have any vacation from our own pockets.

    Everything changed when I moved to a different company. The money was good. We had more than enough of what we needed.

    But, we kept the memory of that day alive – seeing my son with nothing to eat because the salary wasn’t there yet.

    Remembering that day helped us get to where we are now.

    The following is what my wife and I did:

    • We worked out our budget slowly adjusting to instead of having money enough for 15 days, we made it 20 days, 25 days then one month. This way we don’t have to wait. We have a specific amount per day that we can only spend.
    • We didn’t change our cost of living for a while. We stuck to our budget as our priority is to be liquid – to always have cash on hand.
    • We started investment. At first, I purchased a variable life insurance.
    • Next, I went into stocks. It was difficult at first as I kept losing money but then I learned the peso-cost averaging so I did that instead.
    • Our budget remained the same with an annual increase of 5% for inflation.
    • We continued managing our budget from 30 days to 60 days to 90 days. This means that we maintained 3 months’ worth of living expenses as savings.
    • We eventually stabilized and now doing 20% investments to various assets, 70% budget for our monthly expenses, and 10% to savings.

    I will tell you that it was really difficult at the start. Everything in life is difficult at the start but, if you don’t start moving now, nothing will happen.

    Don’t spend everything.

    This is what “living below your means” means. It is not depriving yourself. It is just about not spending it all and putting some to savings and/or investments. Life is meant to be enjoyed. But not to the point that you suffer financially after enjoying that meal from the restaurant.

    A lot of us will say that they don’t have enough. Or they are paying loans. Or supporting their families. All good. Pay that loan. Don’t start a new one until that is done. Not enough money? Go find another work or if you have the drive, start a business. Too much expenses at home, well, that’s a different experience and expertise that I will discuss next time.

    Just don’t spend everything. Save some.

    Living below your means is a financial strategy that involves spending less money than you earn. It’s about creating a buffer between your expenses and your income, ensuring that you have funds left over to save and invest. This approach is not about self-deprivation; rather, it’s about making conscious choices to secure your financial future while still enjoying life’s pleasures.

    Understanding “Living Below Your Means”

    The concept of living below your means is often misunderstood. It’s not about cutting out all of life’s joys or living a minimalist lifestyle (unless that’s your preference). It’s about balance and making informed decisions. For instance, enjoying a meal at a restaurant is perfectly fine, but it should not lead to financial distress. The key is moderation and planning. If you know you have a dinner planned, you might save up for it in advance or cut back on other non-essential expenses to accommodate this treat.

    The Reality of Financial Constraints

    Many people feel trapped by their financial obligations, whether it’s due to insufficient income, loans, or family responsibilities. These are valid concerns, but they shouldn’t be excuses for not saving. If you’re dealing with loans, focus on paying them off without incurring new debt. If your income isn’t enough, consider looking for additional work or, if you’re entrepreneurial, starting a small business. High household expenses can be overwhelming, but they also present an opportunity to audit your spending and find areas to cut back.

    Strategies for Saving

    Saving money requires a strategic approach. Here are some methods to help you save more effectively:

    • Budgeting: Create a detailed budget that tracks all your income and expenses. This will help you identify where you can reduce spending.
    • Emergency Fund: Aim to build an emergency fund that covers 3-6 months of living expenses. This fund can protect you from unexpected financial shocks.
    • Automated Savings: Set up automatic transfers to your savings account. This “out of sight, out of mind” approach can help you build savings without feeling the pinch.
    • Investing: Consider investing a portion of your savings to grow your wealth over time. Even small, consistent investments can compound into significant sums.
    • Cutting Costs: Look for ways to reduce your regular expenses. This might include negotiating bills, eliminating subscriptions you don’t use, or shopping for better insurance rates.

    The Importance of Mindset

    Adopting a mindset of financial prudence is crucial. It’s about prioritizing your long-term financial health over short-term gratification. This doesn’t mean you can’t enjoy life; it simply means making choices that align with your financial goals. For example, instead of buying a new car, you might opt for a reliable used one and invest the difference. It’s these small decisions that can lead to substantial savings over time.

    Conclusion

    Living below your means is a sustainable financial practice that can lead to a more secure and stress-free life. It’s about being mindful of your spending, saving diligently, and investing wisely. By adopting this approach, you can enjoy life’s pleasures without compromising your financial well-being. Remember, it’s not about spending nothing; it’s about spending smartly and saving consistently.

  • Investments | How to win over emotions

    Investments | How to win over emotions

    Stocks. Cryptocurrency. Real estate. Business. Art. And other things that generate income. These are examples of assets that can be considered as investments. These are various options that are bought that yield returns may it be from dividends, rent, sell, or profit. Investing in these various instruments could make one wealthy and be set for life if done right, with some luck. Having these assets could spell the difference between living a good life and living in hardship. It is somewhat similar to betting and gambling, but not entirely, that these instruments will give the returns that will change a person’s life.

    True. Investing and receiving that return changes everything. Suddenly, the feeling of being wealthy is here. The worrying about getting that salary, supporting the needs of the family, funding a vacation, or even ensuring there is always food on the table, is gone. The earnings gained from that investment are enough to sustain the life striven for after all of the years of hard work, waiting, and hoping. Living a good life is now within grasps.

    That is the future. That is what will happen in the future. It is not now. It is not tomorrow, not next week, not next month, not even next year. It will happen. However, there would be no definite time. It would take a while. It would take perseverance to continue. It will require effort to stay the course. It will require an enormous amount of patience and hoping and wishing and praying that it will turn out as what is being aimed for.

    But most people quit. Quit early in the game. Loses. Never able to see the fruits of the labor. The question would be the why. Why do people quit and pull out of the game? What makes people lose in investment? What can we do to keep going?

    Investment is not overnight

    Keep that in mind. Investment is not overnight. It will not make you rich or wealthy tomorrow. It will not give you the return you are hoping for the following day. It is not magic. It is not a miracle. It is not inheritance. It is not lottery winning. It is none of those.

    Investment takes time. The returns will happen eventually. Maybe ten or twenty years, or more but, if it is done right, it is just a matter of when. When research, right habits, and attitudes are used, definitely the return will happen. But, not tomorrow. Keep that in mind. Especially if you are just starting. Do not hope that tomorrow when you wake up, you will have the returns you are expecting.

    Most people invest in instruments because it is the trend. It is the hot instrument at the moment and they see people earning big amounts from their investments. They are able to buy a car or their own house because of the return they got from their own investments. So, they buy the same investments and check every now and then how much have they gained. Seeing that chart going up daily makes them smile and just a matter of time, they will become rich.

    Or so they think.

    Investing and emotions

    When that bar chart, example for stocks, starts to go down, you start fearing losing money. But, still hope that it will go up tomorrow. Well, it didn’t happen. You are still losing money. So you start feeling that the investment is worthless so you start selling to minimize your losses. This is a good thing. This is right. But come the following day, you see that the chart goes up. You feel and think you wasted that opportunity and go and buy again which is now at a higher price than what you have sold the previous day. You think that you’ll stay. That investment will go a long way.

    And you wake up the following day. The chart is on the downtrend again. Much lower than the other day. Cutting your losses again, you sell. By this time, you feel a little bit sad and want to pull out everything. There is no reason for you to keep doing this and losing money. So you pull out, all of your investments.

    Another day, another surprise. The investment you pulled out from is gaining traction and earning more than what you were hoping for. You wanted to get in again. But you do not have enough money to buy as your losses reduced your funds.

    And this cycle goes on and on. That feeling keeps on and on. You let your fear get the best of you. You lost. Your emotions took hold of your decisions and your actions are based on what you feel. And this leads to nowhere. Nowhere near your goal of being rich and wealthy. Nowhere near living a good life.

    Because you tied your investment with your emotions.

    Invest in what you know

    Investment should be treated differently. It should not be about the bar charts. It should not be about what other people are able to buy after their investments. It should not only be about being rich and wealthy, although that is the goal of it. It should be about something else.

    Before investing, you must know what are investing your money on. A simple meaning to this is if you are going to give someone money, what will that person do to give it back to you with interest? How will that person make the money grow?

    Take the following as an example:

    • Multi-level marketing. When you buy in, how will you make money? Either selling stuff or recruiting people. And to make more, you have to sell more stuff or those you recruit must recruit too. Because you’ll get a percentage of the income of those you recruit and those they recruit.
    • Stocks. Buying a share of a company means you give them enough capital to grow their business. What is the nature of their business? How will they grow?
    • Cryptocurrency. These are not real assets. You can not hold it. You can not see it. What is the purpose of holding a crypto cryptocurrency? How will it increase in value?

    And there are so much more.

    When you invest because you see the bar chart, again stocks for example, going up without knowing what is that business doing with the money, you will only get emotional and lose more money.

    Doing research and understanding first is the key to a good investment. It requires hard work. It will ask for time. It will require effort. By doing so, you take out the emotions out of investing and only be logical on where you put your money in.

    Now ask yourself, are you ready to do the work?

    Do the work. Do not be emotional.

    Investing will require work. Do not just ride the trend. It will not help you. Do your own research. Understand it better. Consider that you are giving out your money because you believe in what that investment instrument can do. That they will succeed because the business is viable and will last long.

    But if you just want to be rich and wealthy and ride the trend, you would not win.

    So, be smart. Do the work. And you will notice that after you had done the effort and invested, you are richer and wealthier than you were yesterday.

  • When wealth gets the better of you

    When wealth gets the better of you

    Wealth could change us. We can become arrogant and belittle other people. But becoming rich is not a passage to mistreat people.

    You got promoted and got better pay. You are earning more than what you could have hoped for. You are able to buy nice things and enjoy a little luxury in life.

    Compared to before, you have a car now that you drive and you can easily go to places where you need and want to without thinking about how to.

    Birthday celebrations are not a problem anymore. Or better yet, it is not a simple lunch or dinner at home. You are now able to have a nice time with your family or friends outside may it be in a buffet restaurant or going to a resort and spend a night or two there.

    Fast food is not so special anymore. Before, it is a once-a-month meal that you hold your cravings back. You used to savor the moment of eating in a fast food restaurant. Or even that Starbucks coffee that you usually buy every paycheck. But now, you can get it weekly.

    Life is good. Then some things change.

    You are not aware of how you treat other people. Unconsciously, you expect service workers to “serve” you perfectly. You talk to them condescendingly. You treat them like they are below you.

    You forget to say thank you for the work they do. You think you are paying and deserve to be treated like a king or queen. You deserve to get the value for your money.

    You, again unconsciously, see yourself as better than everyone else and thus deserve to be treated specially. You got the money. You can pay. You will get what you want.

    You are not aware of the tone of your voice while others hear it. They can not do much about it because they are being paid to serve you. You, on the other hand, are still unaware, and continue your actions because, for you, you are doing what is right for your money.

    We are all guilty of this. We act like kings and queens at some point in our lives. We see the world is ours for the taking. Since we pay, we expect the best value for our money.

    We forget that those who work in the service industry are people too. They are paid yes. But they do not deserve to be treated like someone beneath us. Their work helps us get what we need. We should be nice, appreciative, and grateful for them.

    We all get enveloped in our little world and think we are gods. We think a lot about ourselves and forget other people. By doing so, we mistreat a lot of people we interact with. We have to be better.

    Be better at how we deal with other people. Be better at realizing how small we are and that we play a very tiny part in how the world works. Be better at knowing that we are not above anyone else. We are all equal and we serve each other. It is good to be nice to one another.

    The world is a huge place. Our worlds in our heads are a big space for our ego and pride that only cares about us. Why not give some space to think about others? Others who are not related to us or even love?

    Be humble. We did not make it this far by ourselves. No one did. No one will. Everyone needs everyone. Be nice.

    Wealth can bring about significant changes in a person’s life, offering new opportunities, experiences, and a sense of security. However, it can also lead to a change in behavior and attitude, sometimes resulting in arrogance. Arrogance is often characterized by an overbearing sense of self-importance, a lack of empathy, and a disregard for others. It’s important to recognize the potential for this transformation and take steps to remain grounded and humble.

    Understanding Arrogance

    Arrogance arises from a belief that one’s wealth elevates them above others. This can manifest as a dismissive attitude towards people, an inflated ego, and a tendency to show off one’s success. It’s a defensive mechanism that can isolate individuals and damage relationships.

    Staying Humble

    To avoid becoming arrogant with newfound wealth, it’s crucial to stay connected to your roots and remember where you came from. Reflect on your journey and the hard work that got you to where you are. Recognize that wealth is not solely a product of your efforts but often involves a combination of factors, including luck and the support of others.

    Practicing Gratitude

    Gratitude is a powerful antidote to arrogance. Regularly expressing thanks for what you have and acknowledging the role of others in your success helps maintain a balanced perspective. It fosters a sense of interconnectedness and appreciation for the contributions of those around you.

    Empathy and Generosity

    Developing empathy is key to avoiding arrogance. Try to understand and share the feelings of others, especially those who are less fortunate. Use your wealth to help others, not just through financial contributions but also by giving your time and attention. Generosity is not just about giving money; it’s about being willing to share your success and uplift others.

    Maintaining Relationships

    Keep close ties with friends and family who knew you before you became wealthy. They can provide honest feedback and help you stay grounded. True friends will treat you the same regardless of your financial status and remind you of your core values.

    Continuous Learning

    Adopt a mindset of continuous learning. Wealth does not equate to wisdom, and there is always more to learn. Stay curious and open-minded, and seek knowledge and experiences that enrich your life beyond material possessions.

    Conclusion

    In conclusion, wealth should not change who you are at your core. It’s important to remain humble, practice gratitude, show empathy, maintain genuine relationships, and continue learning. By doing so, you can enjoy the benefits of wealth without letting it lead to arrogance. Remember, true richness lies in your character and how you treat others, not just in your bank account.

  • What is stopping you from saving money?

    What is stopping you from saving money?

    What is stopping you from saving money?

    When you look at your bank account and see it at zero or even just the maintaining balance, what do you feel? You justify that you have a lot of expenses. You have to pay debts. You have to pay your bills. You pay the tuition of your siblings. You have a lot to pay.

    You may start feeling the following:

    • Panic: An immediate sense of panic sets in. Bills, groceries, rent—they all loom large. How will you survive this month? Anxiety tightens its grip.
    • Frustration: You’ve worked hard, yet your account stares back at you, empty. Frustration bubbles up. Why isn’t your effort translating into financial stability?
    • Regret: Regret whispers in your ear. That impulsive purchase, the missed savings opportunity—it all adds up. If only you’d made wiser choices.
    • Helplessness: The feeling of being trapped. You’re caught in a cycle of scarcity. The world seems to move forward, while you’re stuck.

    And yet, you still find time to add things to your shopping cart, buy things that you see that you think you need, or, maybe just the things that you want because it is cute, cool to have, and act as your collection. We’ve all been there—the allure of a shiny new purchase, the thrill of clicking “add to cart.” But when your bank account mirrors a barren desert, it’s time to pause.

    Some of the reasons why we continue to “add to cart” are:

    • 1. The Shopping High. The dopamine rush—the moment you click “Buy Now.” It’s exhilarating. That new gadget, that trendy outfit—it promises happiness. But here’s the catch: it’s fleeting. The thrill fades, leaving you with an empty wallet and a closet full of “cool” things.
    • 2. The Need vs. Want Dilemma. Ask yourself: Do I need this or want this? The line blurs. That cute mug? Want. Groceries? Need. The latest phone? Well, it’s complicated. Define your priorities. Essentials first, indulgences later.
    • 3. The Collection Obsession. Collecting can be delightful—stamps, vintage records, Funko Pops. But when it drains your account, it’s time to evaluate. Are these items enhancing your life or cluttering it? Curate mindfully.
    • 5. The Emotional Void. Why do we shop? Boredom, stress, loneliness. Retail therapy patches emotional holes. But it’s a temporary fix. Seek healthier outlets—exercise, journaling, connecting with loved ones.

    Realizing these reasons makes you aware why your bank account is in a sad state. And that puts you in a sad state too because it seems that nothing is happening to improve your life after working hard for so long.

    Forget the allure of wealth and riches, the promise of lucrative investments, and the idea of living a lavish, luxurious life. These dreams remain out of reach without the foundation of saving.

    We all live in a world where we are very much easily influenced. Influenced by what we mostly see and hear. The videos that we absent-mindedly scroll through our social media like Facebook and TikTok are primarily affecting us. These social media apps that we use almost a third of our day show us a lot of things that we may not really need. When we scroll through our feed, we see three things – our friends’ posts, ads, and trending or viral videos or profiles. The content of these three things influences us with pretty much most of the things we buy.

    For example, on a friend’s post, we see them eating in a restaurant overlooking a great landscape or city lights. Or friends who are on vacation on a beach showing their pictures posing with the beach behind them or a great sunset. We also see some who are in a resort or hotel having the time of their life drinking, partying, or just even having a lazy day on a couch.

    We also see ads for new things to buy. Great shoes. Great home stuff. Phones and gadgets. And with the explanation of the seller, for those doing affiliate marketing, we think that it is something we need that we are deciding to get it for ourselves. Even those trending videos of places to go or things to buy, we started thinking of trying it out.

    And once we get influenced, buy these stuff, then we go back to seeing our bank account at zero. We keep telling ourselves that what we buy is something of value to us and need it. It is our money. No one can tell us how to spend it. It is our hard earned money. We spend it as we please.

    However, the longing feeling of a zero bank account after years of working will get to you. Like you are working for nothing.

    What can you do then?

    Start with how you feel. What do you feel when you are living paycheck to paycheck? After budgeting, allocating your salary, and planning, what happens next? Yeah. Do not deny it. You still plan to buy things because you have extra money.

    Or even if you don’t have excess from all the adjustments you made, you will still find a way to allocate money to buy things you think you need.

    If you can do that, then why not save it?

    I will honestly tell you that once you start saving and seeing that bank account grow, you will feel a sense of a little bit stress-free. You will feel a little bit happy. Because after all of your hard work, you could feel a future that you do not live paycheck to paycheck.

    And you are the only one stopping you.

    So help yourself. Start now. You do not need to start big. Start small. A small amount every paycheck will go a long way.

    Forget about habit. Let us just make it simple. Just start saving. Save a little bit. Do it every paycheck. You’ll see by the end of the year, you’ll be surprised how much money you have.

    It can be done. It is not difficult. Stop telling yourself that. It is doable. Anyway, why are you not doing it? It is for you, not anyone else.

    Just start small and be better than you were yesterday.

  • What happens when you do not save

    What happens when you do not save

    What happens when you do not save?

    Finally! You landed a job. You got accepted. After sending out your resume to many different companies in the hope of getting hired, you got a call and got accepted. After rigorous interviews and exams, you receive that text or email saying you got the job and you will start soon. And then, it was your first day. You learned what to do and how to do your job. You make new friends. You spend time with them, your colleagues. Talked about going out, eating out, going to resorts, and having fun drinking. You are living a life.

    And all of these fun activities you do are financed by your salary. That income you get from working 40 hours a week, even more, enables you to enjoy these in life. You know from your salary that you can afford a now and then eating out, or drinking, or going on vacation. You know you are good to go. You know you got the money. Why not do it? It will be fun.

    However, before you know it, there is now a nagging feeling. That feeling of waiting for the next paycheck. That feeling that you do not have enough. The bank account that you zero out every time you get your salary becomes a regular thing. Then you start telling yourself that you need the money. Anyway, that is why you are working. You need money that you can spend enjoying life. It is a justification that you tell yourself.

    But, you wanted to be rich. You want to be wealthy. You want to live the life of people you see with cars, nice houses, nice clothes, nice vacations, and nice food. Looking at them, you keep telling yourself that you’ll get there once you get promoted. You’ll have more money to afford it. You can have everything that you want. Your manager has it. You should be able to get it when you get promoted.

    Actually…that nagging feeling will not stop if you do not start saving.

    Saving is a great feeling

    Saving a part of your income will go a long way. It creates a feeling that you did well in life as you see your bank account grow. It will give you a sense of accomplishment that after all of your hard work, the daily grind, the hustles and bustles of daily life, you can tell yourself that it was worth it. The money you see in your bank account will tell you to keep going because it is an amount that reminds you that you have money and you do not need to worry.

    When you see that money in your bank account steadily growing, at one point in your life, you will not be that excited to get your paycheck. Of course, you still need to get paid for the work but, when your savings is equal to your monthly net income, it will spell the difference. It will tell you that you have enough for at least a month so even if your salary is delayed, you can survive. You do not need to worry.

    You get out of that cycle of living paycheck to paycheck. You will feel more driven to work because you are not working for money anymore. You are working in the pure sense of the word, work. While, again you still must get paid, your focus shifts to being productive and focusing your efforts on making quality outputs. This is the result of removing the worry in your head.

    You do not worry anymore. You have a steady income. You have enough money in the bank. You can do what you want. You can focus and create quality output. You can spend time with family and friends without worrying about work or where you’ll get the money, or about time. That feeling of seeing your bank account grow will start creating a better sense of self. It will start you to think about where you are taking your life. How are you leading your life is up to you and it all starts with not worrying.

    So, how do you start and get to that feeling?

    Start by forgetting

    Forget first that you have 100% of your salary or income available to you. This means that you must think that not all of your paycheck is for you to spend. Forget that. Tell yourself that you do not own all of it. You do not have the right to spend all of it. You are only entitled to spend a part of it. You can not exhaust it. You do not have all of it.

    Part of it is yours to spend how many ways you would like to. Part of it is not yours. And who does it belong to? To your future self. This is when you start remembering. Remember that you owe your future self. You must ensure that in the future you will not be going through the same struggles and challenges and hardships that you have right now will not be encountered by the future you. Or at least, you make your future you capable and enabled to overcome any other obstacles that would come.

    By forgetting that 100% of your income and remembering that only part of it is for you and part of it is for your future self, you start a mindset of saving. You start building wealth. You start seeing that bank account grow. You start having that feeling that you are successful. You will eventually start developing the drive to keep pushing forward because you can see the results of your hard work.

    Do not stop. It will get better.

    At the start, it will be difficult. You will think that you’ll start the next time you get your paycheck because you have to pay a lot of stuff. You will think that you can not do it now and better start next time. While this may be good and true, just be aware that if you do it again next time, you will never get started.

    So, start now. Start small. You do not need to start with a big amount. You can start small. The important part is you start and you keep doing it. You do not stop. You keep doing it. Regardless of the situation, you must continue doing it.

    And it will require you to budget but that is another topic for another day. For now, what you need to do is to start, do not stop, keep doing it, and eventually, you will notice, that you are richer than who you were yesterday.

  • When money is a problem

    When money is a problem

    When money is a problem, it really takes a toll on us. I recently read this post on a group asking for advice on what she should do as she is on the verge of giving up. She had a ton of debt, barely making her payments and monthly expenses, and with very little income. I am not going to tell you why it happened because that is not important to what I am going to say today. What is important is what she needs to do to get out of her situation.

    We were in this situation before. We did not have enough money, debt hanging over our heads, and the feeling of being down because we could not do much.

    It’s incredibly tough to be caught in a financial rut, struggling to make ends meet and feeling overwhelmed by debt. However, it’s essential to remember that such challenges are not insurmountable. With determination and a strategic plan, it’s possible to pave the way towards financial stability and a brighter future.

    First and foremost, creating a comprehensive budget is crucial. By meticulously outlining monthly expenses and income, it becomes easier to identify areas where expenses can be minimized and savings can be maximized. Additionally, seeking out supplementary sources of income or exploring opportunities for career advancement can help improve financial standing over time.

    Simultaneously, addressing the existing debt is paramount. Organizing debts based on interest rates and prioritizing repayment can aid in managing and ultimately reducing the overall debt burden. This may involve negotiating with creditors or seeking professional financial advice to develop an effective debt repayment strategy.

    Cultivating a positive and resilient mindset is also key during this challenging period. While it’s natural to feel disheartened, maintaining a focus on achievable goals and celebrating small milestones can foster a sense of progress and motivation.

    Ultimately, while the journey toward financial stability may be arduous, it is certainly within reach with perseverance, resourcefulness, and a proactive approach to addressing financial challenges.

    What we did to solve it

    The first thing I did was to stay away from expenses. I honestly could say that there was a time I hid from my friends because I did not want to go out with them for lack of money. We changed our approach to money and tightly budgeted. If we can not afford it, we do not spend for it. I looked for another job that gave me a better income and worked on progressing my career. When the money started pouring in, I started saving and investing. And with better budgeting, we are then able to enjoy better things in life.

    My situation is incomparable to the person who asked for advice. Her situation was very difficult and even if I shared with her what I think she could do, only she could make the changes in her life.

    Building a solid financial foundation is crucial for achieving stability and freedom. In the quest to take control of one’s financial situation, the decision to stay away from unnecessary expenses is a great starting point. It’s not uncommon to feel the need to hide from social situations due to financial constraints, but making the conscious choice to prioritize financial health can lead to long-term benefits.

    By adopting a disciplined approach to budgeting, individuals pave the way for a more sustainable financial future. The principle of “if we can’t afford it, we don’t spend for it” reflects a wise and prudent mindset that sets the stage for responsible financial management. Additionally, seeking opportunities for increased income through alternative employment and career advancement can significantly impact one’s financial standing and open doors for further opportunities.

    As the efforts to enhance financial stability bear fruit, the ability to save and invest becomes more attainable, laying the groundwork for future financial growth. Through strategic budgeting and proactive financial decision-making, the prospect of enjoying a higher quality of life becomes increasingly feasible. Ultimately, the journey toward financial well-being is marked by perseverance, adaptability, and a steadfast commitment to building a secure and prosperous future.

    Do not take it for granted

    The thing is, most people take money for granted until it becomes a problem. While the money is pouring in, a lot of us think it will last forever. Sure. Hope that it is like that for all of us. But, if we do not take care of it, by what the law of attraction teaches, the universe will not give it to us anymore.

    Understanding the significance of money in our lives goes beyond its material value. It grants us access to experiences that enrich our lives and the lives of those around us. By recognizing the influence of money, we can leverage it as a force for positive change, enabling us to support causes we believe in, invest in our personal growth, and contribute to the well-being of our communities. Embracing a balanced perspective on money allows us to harness its potential to create a brighter future for ourselves and others, fostering a sense of abundance and gratitude in our daily lives.

    The significance of money in our lives extends far beyond its material value. It not only provides us with the means to fulfill our basic needs but also grants us access to experiences that enrich our lives and the lives of those around us. By recognizing the influence of money in our lives, we can leverage it as a force for positive change, enabling us to support causes we believe in, invest in our personal growth, and contribute to the well-being of our communities.

    Embracing a balanced perspective on money allows us to harness its potential to create a brighter future for ourselves and others. It empowers us to make choices that align with our values and aspirations, fostering a sense of abundance and gratitude in our daily lives. As we navigate the complexities of financial decision-making, embracing a holistic approach to money can empower us to cultivate a harmonious relationship with it, one that promotes not only our individual well-being but also contributes to the collective thriving of our communities.

    Let us always consider the value of money as truth be told, it enables us to do what makes us happy. Give enough importance to it. It is a tool that empowers us to do great things for ourselves and for everyone around us. In reality, it makes life a little better.

  • Money can buy happiness

    Money can buy happiness

    Money can buy happiness. There is truth to this, to some extent. We always read quotes, posts, blogs, or articles that say money can not buy happiness. That by this message, it is not important. That what makes us happy is the love that we have around us. The love we give to other people. As long as we have them, we are happy.

    When considering the relationship between money and happiness, it’s important to acknowledge that while financial stability and the ability to fulfill one’s needs can contribute to a sense of well-being and contentment, true happiness often stems from meaningful connections, experiences, and personal fulfillment. The love and support of those around us, the positive impact we have on others, and the pursuit of our passions can bring immense joy and fulfillment that transcends material wealth. This does not diminish the significance of financial security but rather emphasizes the multifaceted nature of happiness and the various elements that contribute to it.

    Though, at the same time, there seem to be posts circulating around that money do buy happiness. That if we do not have it, we would not be able to enjoy life and in effect, we will not enjoy spending time with people around us. Without it, we do not have anything. Without anything, there is no happiness.

    It’s worth noting that while money can facilitate access to certain experiences and resources that enhance our quality of life, it is not a guarantee of happiness. As individuals, we are driven by complex emotional, social, and psychological factors that shape our perceptions of happiness and fulfillment. Therefore, while financial stability is important, it is equally vital to cultivate and cherish the meaningful relationships and experiences that truly enrich our lives and contribute to our overall happiness.

    And yes, I agree with this. I agree that we need money to be able to do things. To buy things that will help us achieve and do what we want to do. To experience things with our loved ones. To be able to create something for someone. To be able to do what we want to do and achieve great things. With money, we can be happy.

    It could bring happiness depending on how we use it. If we take it into the context that we need money to buy things just for the purpose of buying them, becoming affluent, to show off, to experience pleasure, without any purpose of creating and helping, that is when we can say money can not buy happiness as owning material things does not really make us happy. It is when we are able to create and help that we experience joy and have a sense of fulfillment.

    The role of money in our pursuit of happiness is indeed complex and multifaceted. While it is true that having financial resources can provide us with comfort, security, and opportunities, the way in which we choose to utilize and perceive money ultimately determines its impact on our well-being. If we approach money solely as a means to acquire material possessions, attain status, or seek fleeting pleasures, it may lead to a shallow and transient sense of fulfillment. However, when we shift our mindset towards using our resources to create meaningful experiences, support others, and contribute to the greater good, we can discover a deeper, more lasting form of happiness.

    In this light, true happiness may not stem from the mere accumulation of wealth or possessions, but rather from the meaningful ways in which we engage with and direct our financial resources. Whether it involves supporting causes we believe in, fostering connections with others, or pursuing passions that bring fulfillment, the conscious and purposeful use of money has the potential to enrich our lives and those of others. Therefore, the true measure of wealth may not solely reside in what we possess, but in the positive impact we can create through our actions and choices.

    When we have money and we use it to experience pleasure, it does not help us grow. Buying nice things, going on that expensive vacation, or showing off richness through parties, for a moment, we may feel good and nice however, after that, we feel empty. We go back feeling low or feeling sad.

    If we use money to create something for ourselves and for others, it will have a different effect on us. Creating something will require us to deal with complexities, challenges, absurdities, etc. And during those moments we are dealing with it, we sometimes feel defeated and find it hard to go on. But, once we complete the task, we feel a different sensation. Yes. We enjoyed it. We feel happy. We feel successful. We feel fulfilled.

    The process of creation can be both daunting and rewarding. When we invest our time, effort, and resources into creating something, we embark on a journey filled with uncertainties and obstacles. This journey tests our patience, resilience, and problem-solving abilities. There are moments when we may question our decisions and abilities, feeling overwhelmed by the magnitude of the task at hand. However, as we persist and overcome each challenge, we experience a profound sense of accomplishment and satisfaction.

    The value of the outcome extends beyond the tangible result itself. The act of creation shapes our character, enriches our experiences, and nourishes our creativity. It fosters a sense of purpose and cultivates resilience in the face of adversity. Moreover, when our creations benefit others, the intrinsic rewards are magnified. The knowledge that our efforts have positively impacted others fills us with a profound sense of fulfillment and purpose. It reinforces the interconnectedness of our actions and the potential for positive change.

    In essence, the process of creation is a transformative journey that not only yields tangible results but also shapes our mindset and enriches our lives. It teaches us valuable lessons, ignites our passion, and infuses our existence with meaning. Whether we create for ourselves or for the benefit of others, the act of creation has the power to evoke a profound and lasting effect on our personal growth and fulfillment.

    So, yes. Money can buy happiness. That happiness is not about a pleasant life, of leisure and pleasure. That is not it. It is about enjoyment and fulfillment. Enjoyment when we are challenged and grow as a result. Fulfilled when we are able to create something that can help others. Summing all that, we experience happiness. And money is a tool for us to achieve that.