Economic Survival Tips

Surviving the times: Tips for the young Filipino reader:

My personal idols and financial gurus, in all their books and speeches say it is when you need not work anymore (hence, no need for active income), and your passive income already suffices your daily expenses that you will be considered financially free and out of the rat race.

Wealth however, according to a lot of these gurus, “is a state of mind”. True happiness usually follows true wealth.

But we are in the Philippines, a third world country. What do the terms being wealthy and  financially free mean to someone with an empty stomach? 

I have been walking
on the Philippine islands long enough to realize how poor the average Filipino is. How long this has been going; and how the culture of the younger generation nowadays has evolved in direct proportion to – or should I say, reaction to- being poor.

This article is for this younger generation. If you’re in your teens, and have yet to start college, read up. This may save you. If you already have teen-age kids, print this out and let your kids read it. This may save them.

Tips for the young:

During your teens:

1. No one dares say this aloud, but i am very much compelled to do it right now: It is your parents’ obligation to get you through college. Do not feel sorry about it. If you must, remind them of this responsibility. In return, it is your job to do good in school. While at it, obey your parents and teachers; obey rules and regulations of your school and community; be a productive member of this nation by NOT getting into any trouble with the law .
2. While in college, learn everything you can from your instructors. You have no other business but STUDY. Your parents go to great lengths  so as to afford your education, so do them a favor by focusing ONLY in your classes. Early on, realize that every subject is important; and that you will be using these lessons in your adulthood. Tip: if your subject is accounting, pretend you’ll one day manage your own business hence you need to know basic accounting. DO NOT entertain romantic thoughts just yet. These are all distractions. Eyes on the prize: a good education.

In your 20’s:

3. After graduation, get a job for experience, and not for cash. DO NOT get a credit card just yet. It takes enough maturity to deal with credit cards. Note: in my next few posts, I will teach you how to use credit cards to create wealth. Meantime, stick to the basics: use cash. If you can’t afford it now, don’t buy it. It’s the simplest rule in the book.
4. After one or two short jobs, settle for a major job. Something you know you are ready to make a career out of. Remember that the jobs right after graduation were just for experience. This time, you are already gearing up for the rest of your life.  
5. Every payday, set aside small amounts (maybe P500 to P1,000) and regularly save in banks. Bonuses go straight to your savings account. This will be your emergency fund. Stop the practice only after you have set / saved up 6mos worth of your existing monthly salary. Leave the money there
6. Find ways to invest. As your salary increases, set aside some more amount and regularly invest this in the money market or in the stock market. Note, be strict with the term regularly here. Immerse yourself in investment instruments. Be wise: Know what you’re getting into.
7. This is important: Choose your spouse well. Make sure he / she is in good health, and at the very least financially literate (financially stable is a bonus). Here's what the romance books or movies do not tell you: partners in life come with baggages. Choose one with the least baggage, someone independent and emotionally strong and ready to stick with you over the long haul (meaning, forever coz surprise! there is no divorce in the Philippines).
8. Get a second job (or any means to earn more cash), part time. Require your spouse to do the same. Early in your married life, make a pact that your lifetime partnership will not only be for romance, but for business and creating wealth as well. If he/she slacks off at any time, be sure to snarl at him/her and just say "Ano ka, swerte?". Be conscious with your expenses. Remember that soon when your kids start schooling, they will require you to get them through college
9.  Earn, earn, then earn some more. “It is not bad to be a little greedy” – words of Robert Kiyosaki.
10. Invest in earning assets. Stop buying stuff that lose value – words of Robert Kiyosaki.
11. All the while, invest in knowledge. Find ways to feed your brain. Enrol in classes.  Hone your skills. Make this a passion.

In your 30’s:

12.  Put up a business, but do not quit your job/s yet.
13. Make sure you have multiple streams of income before retiring. Your spouse, too. Make a deal: Nobody retires unless he / she has a *number of productive and self-sustaining streams of income. Let me define the terms word for word:  

*

a) A number : meaning, more than one.

b) Productive : meaning, income-generating

c) Self-sustaining: meaning, stable and will not need much supervision or additional capitalization from you, the owner to be able to operate on its own

d) Streams of income: Income sources, other than your present job.

In your 40’s:

14. Retire and live the good life

Of course, take care of your health. Make a conscious effort to reward your body and mind 3 basic things: exercise, good food, and enough rest

Followed to the letter is your ticket to creating and preserving wealth in the Philippines. These are the What’s. The trickier part is getting to the How’s.

One more surprise: Your government will not be there for you when you retire. Nor will your parents, or siblings. 

Information is key. What’s wrong with our society today is that NOBODY tells the kids what to do with their lives. NOBODY WARNS them of the trap. Coz believe you me, there is a trap.

What’s bothering me so much is that we all know that surviving adulthood is very difficult. YET, we do not tell our kids. Is it because we are too ashamed to admit to ourselves that we screwed up in our youth as well? Whatever the reason, this has got to change.

Stay tuned. There are stuff I know about the How’s.

PS
Not convinced? Click this article!