Alam ko medyo gasgas narin ang mga paalala namin para mag save at invest. That’s why today, let’s reward ourselves and talk about SPENDING.:)
Sino ba may ayaw ng latest gadgets, out of town or out of the country vacation, food trip, and shopping? I’m sure, aside from bills, education, and health expenses, ito ang madalas natin pagka-gastusan.
There’s nothing wrong to spend on these things. Ang importante lang, alam natin ang kapalit o “actual cost” ng mga ito. After all, ang perang pinaghirapan natin, hahayaan lang ba natin mapunta sa isang bagay na hindi worth it?
To explain the actual cost further, let’s take a look at this example.
Mark: The Latest Gadget Magnet
If not you, I’m sure you know someone who can relate to my friend’s situation.
Let’s see what we can learn from his spending habits.
Mark, 24, is working in the BPO industry. He earns around 20 thousand pesos a month. Since he’s single and living with his parents, he has the freedom to spend his salary on his guilty pleasures — the latest gadgets.
He recently rewarded himself for working so hard with the new Galaxy Note 3, which costs around P35,000.
Seems pretty fair right? It’s his money. Why not spend on things which he really enjoys?
The Actual Cost
Most of us are already immune by looking at the price tag. After all, it’s just a number.
But what if we look at it differently?
Going back to Mark who earns P20,000 and works 25 days a month, let’s see how much does he earn per day:
P20,000 / 25 working days = P800.00 per day
Sooner or later, I’m pretty sure Mark will get bored with his Note 3. He will probably get the latest IPhone5S which will be available in the Philippines soon at around P50,000. The actual cost to buy this phone is:
P50,000 / P800.00 (Mark’s salary per day) = 63 working days
That’s 63 days of talking non-stop to irate customers on the phone or 63 working days that he will come to work at 3am and go home by noon. If you’re Mark, will you spend 63 working days for a new phone?
Whether it’s worth it or not, only Mark can answer that. But, he should also be aware that it will not only cost him money, but more importantly it will cost him his TIME – which he can never get back.
Value for Your Money
The reason for this blog is not to make you feel guilty whenever you spend. But knowing the actual cost will help you decide and spend only on things that are actually worth it.
Let me reiterate: there is nothing wrong with spending your money on things you enjoy. If there is anyone who should enjoy your money, it should be you – you worked hard for it, you earned it, it’s yours, enjoy it! However, before you spend your money, make sure you get full value for it because the time you spent making that money is something that you will never get back.