Whenever the topic of financial education is brought up, most Filipinos brush it off thinking that it is only for businesspeople or for the “rich”. The truth is, we all need it. If you want to be free financially or if you want to be rich, you need to learn this!
Although we don’t pay much attention to it, it does affect our daily lives. To put a child to school, to own a house, to drive a car, to pay the bills – all of these will be affected by both having and not having the knowledge about handling money wisely.
Money and Knowledge
People think that acquiring huge sums of money will solve their problems. It may be true for some, but without the knowledge to handle it correctly, others might find themselves in a more problematic situation.
You may have heard of lotto winners who ended up being bankrupt or in a financial mess. This is what usually happens to instant millionaires who suddenly find themselves rich – in fact, too rich that they do not know what to do with the money anymore.
This is exactly what happened to Dionie Reyes who won 14 million pesos in the PCSO Lotto 6/42 draw last April 22, 2008. After winning, he lived the life of a millionaire.
He bought a P4-million house in an exclusive subdivision, drove a sports utility vehicle, and gave balato ranging from P1,000 – P850,000 to his friends and relatives. He also gambled, womanized, and went out every night. After 3 months, he spent all of his money and ended up in debt.*
People lose money for many reasons, and overspending is one of them. This is the reason why having money and financial knowledge at the same time is the key that will greatly help in improving one’s life. Money and financial knowledge go hand in hand. Just like what the author Robert Kiyosaki said, “Money without financial knowledge is money soon gone.”
Money Begets Money
Our culture has taught us that the sure way to become rich is to have a good education, get a high paying job, and live your dreams. Although that is a good advice, a lot of professionals, OFWs, and fixed-income earners know that it is a cycle of “go to work, receive your salary, and pay for the expenses”. The live-your-dream part is always set aside for the future, hoping that things will get better. They are the people who work for money.
But there are some who learned to make their money work for them. How were they able to do that? They acquired the knowledge of Smart Investing.
Know Your Options!
Did you know that you have different investment options?
Investment instruments like Stocks, Mutual Funds, Real Estate, Insurance, and others can help you achieve your financial goal. You may have heard these investments before, but do you really know how they work?
Most Filipinos, even though they want to invest in these instruments, are afraid to do so because they fear that they will lose their money. And because they don’t understand it, they will not invest at all! (Read more about fear of investing here: Fear Factor)
As we always say, take the time to learn so you can take away the fear. Understanding the different kinds of investments available will help minimize the fear of investing.
Once you have acquired the knowledge, you will see that investing isn’t so scary after all. You can sleep better at night knowing that you are taking steps today that can potentially change the way you live your life in the future.
Gone are the days when information about money is limited. There are books, articles, websites, and seminars that teach financial education to those who need it the most – the common Filipino. These are the students who want to have a brighter future, the parents who want to provide for their children, the young professionals who want to stop working and do what they
really love, the OFWs who just want to return home and watch their children grow, and the thousands of skilled Filipino workers who want to live comfortably.
*Source: Lotto Winner Spends P14M