On the first part of this Philippine financial literacy guide, I hope you’ve increased your awareness that most of the people who are coming from universities in the Philippines don’t really acquire financial literacy. This will be a continuation of the first part and still talks about awareness. Here’s second part of your Foundation in Financial IQ – Insanity and Types of People.
One thing is true, we Filipinos always crave for something better. It may be a better lifestyle, better health, better house, a bigger car, buy good things for the family, and so on. We people always hope for something better but for us to get what we don’t have, we got to do something we have never done before or else you want to be called “Insane”.
By Einstein’s definition, Insanity is doing the same thing over and over again and expecting a different result.
It is insanity to say to your child, “You need to go to school for you toget a high paying job”, when most of the jobs are replaced by automated systems.
It is insanity to to tell you child to “work hard” when the fact is the harder you work to earn higher salary, the higher the taxes you pay.
It is insanity to say “Save money” when money’s value is decreasing as time goes by.
Here’s another quote from Einstein:
“We cannot solve problems by using the same kind of thinking we used when we created them”
You need to come up with something new, something you’ve never done before. If it really is true that going to school can assure you to land a high paying job, then why there are bunch of college graduates that are unemployed? Just think of it! Don’t be one of those insane people who thinks that someday they will be in a better position only doing the same thing other people is doing.
I’ll show you below 4 general types of people:
1. No Time, No Money. Most of the company employees fall in this category. You cannot go shopping on a weekday because of the overtime your boss requires you. You don’t have enough energy and time to play with your kids after coming from your day job.
2. No Time, Lots of Money. This category is usually filled with self-employed, professionals and small business owners. Although these people are slightly better than regular employees because they earn more, but these people work harder compared to employees. They have to work harder as not all the time, they will earn the same amount of money everyday.
3. Got time, No Money. Farmers, the dropouts or bums have time but they got no money. These people have no stable source of income and only rely on somebody they know. They earn money when opportunity comes but only to cover their current needs.
4. Got time, Lots of money. This is the category where big businesses, landlords, and investors are in. These people don’t work for money but rather, their money works for them by investing them and earn profits by using money to make money.
Here’s what you need to realize:
- Which one of the four types are you currently in?
- Which one would you like to be in tomorrow?
In the next post, we’ll continue increasing our awareness as we’ll be talking about what money is and understand it more to use it in its full potential.