As a Sun Life Financial Advisor, I come across people who aren’t willing to hear me out because they already have company-mandated life and health insurance.
That’s great, when you’re planning to grow old and retire from that same company you’re in right now.
But what happens if there comes a time when you eventually quit? Like, when you’re not happy to go there everyday again?
That insurance you’ve talked about after you’ve said “No,” may not be protecting you anymore the moment you step out of your office on your last day.
Imagine. You were 21 when you’ve landed on your first full-time job. You were offered an individual life insurance plan for just Php 1,500 or just $30 bucks a month and you said no. Flash forward 10 years later and you’ve quit your job and are currently taking a break. You’ve been offered again an individual life insurance plan. This time you’ve accepted, convinced since you’re basically unprotected at this point while looking for a new job.
You get shocked that the prices have risen – now when you’re 31, you now have to pay at least Php 2,500 or $50 a month even though it’s the same plan with the same coverage.
You’ve gotten older and more prone to sickness (due to your age), that’s why.
My friend, I don’t want this to happen to you.
That’s why we’re busting these Bad Money Beliefs, right now.
Number 4: There’s always next time.
This belief leaves LOTS of opportunities behind
We tend to rationalize and find more reasons and excuses to not take the chance – “too risky”, “my Mom won’t let me”, “I’m too young for this stuff”, “I don’t have time to think about this”.
We say there’s a next time but most of these next times come when we’ll regret not taking the chance when this was given to you before
And I don’t really want you to feel that way.
Remember the person we’ve talked about at the intro?
That will happen to you when you delay your financial journey. It’ll be harder for you to get started because the amount to pay will be higher the next time around.
That’s why taking advantage of time and starting your financial journey as soon as you can is always a good idea.
You want a mantra for this? Makoto, the girl who leapt through time, will give you one:
Time waits for no one.
Got it? Time waits for no one. Just as wealth won’t wait for you to get ready and grab the chance while you spend at least 5 years procrastinating on your financial journey.
The next one is a little bit different from our first one. It’s when you say that
Number 5. “Investing is only for the rich.”
Nope. Not true at all.
Well, if investing still sounds like a term only used for the rich for you, snap out of it.
You can start investing at a very minimal initial cost of Php 1,000 or, more or less, 20 bucks!
And this is NOT a signing up fee
You can buy stocks or get into the Mutual Fund and get your money work for you…right away!
And just in case you’ve forgotten – Investments come in MANY forms. It’s not always just putting your money in these investment vehicles.
You also aim it towards YOURSELF.
Invest in yourself by getting better at what you’re into, or learning new skills. Sign up for classes online or offline, buy relevant books, or take the path of disciplined self-learning. Make the best use of your time. Increase your value and get amazing returns in the long run.
Number 6. It takes money to make money
If you’ve read this, I’ve talked about being resourceful on the problem of not having enough money to get started. You know what they say,
“If there’s a will, there’s a way”
It just takes a little creativity. Not quite the creativity we see in artists or those witty memes we share and retweet, but the creativity of finding ways to get what you want.
And this thinking – “It takes money to make money?” Not creative at all. If you keep thinking this way, then this thought will truly block your creative mind. There are many ways to make money and make it grow, but it doesn’t always have to mean that you must shell out money all the time.
It’s almost 2019. Put up an online business, or put up a website to your family’s business. Do freelance sidejobs, or team up with friends for one-time stints.
A lot of times, it takes just a little money for you to go out of the house, topped with creativity and resourcefulness.
Remember that an idea can become a million dollar if properly executed with the right people without spending a huge amount of dime.
Number 7. You Only Live Once
Nope, not the song, not even the ending theme of Yuri!!! On Ice. Just plain YOLO.
Alright, from what I see, us millennials are actually divided into two kinds – those who hate saying “YOLO” and those who still like it.
But think about it, with all those #travelgoals, must-have makeups, gadgets, #aesthetic, post-paid mobile data subscriptions being spent left and right, expressions like “TAKE ALL MY MONEY” in allcaps while sharing or retweeting about all those merchandise we want – a lot of millennials, whether they find the saying “YOLO” annoying or tolerable, are actually living by this very idea.
I hate to break it to you, but having no balance in your spending decisions will cripple your way to success.
Living by “YOLO” is not smart. If you want to get farther, then you’ve gotta have goals that belong to you, and then you translate them into plans with actionable steps to make them happen. And then follows the careful decisions you’ll be making in life to get better opportunities. To get farther.
Don’t just let life happen, make the life you want happen!
This is also heavily connected to our last bad money attitude for this episode,
Number 8. The One Day Millionaire
Whenever us Filipinos actually earn a bulk of money – let’s say – our 13th month pay, we get all excited and think of every possible way to spend it, mostly on a single day – checking in to a 5-star hotel, eating buffet, or treating everyone to karaoke, meals and drinks.
Since it’s a bulk of money, we get really confident that we can spend as much as we can because it’s a lot of money anyway. And then after all that spending we go back to our bank accounts to see that it’s gone.
What’s worse is that sometimes when we put on a spending spree like this, the expenses are even GREATER than the bonus we’ve received!
Imagine if you saved half of it and put it in an investment vehicle that has 8% annual interest rate – which means it grows 8% a year:
That same money doubles up in just 9 years! Without you doing anything, just putting it up on that investment vehicle. Doesn’t it sound sweet? Getting your whole bonus back in one piece by making half of it grow?
So what does this mean? Instead of feeling like a One Day Millionaire with your bonus, why not actually make it real just by treating your money right and making it?
There are so many better ways to treat your money right.
I’m not saying you can’t shop or eat buffet EVER, but if you want to BE a millionaire rather than just by FEELING LIKE it, then save and invest….with intention. Set aside a portion of that bonus and put them in an investment vehicle that’s in line with your goal and preference. Make it a habit every single time that you earn money.
For tl;dr folks, here’s a summary:
For this second part of the 3-part segment Bad Money Attitudes: Money Beliefs That Will Make You Poor Forever, we’ve learned that:
- In delaying our chances to start or advance on our financial journey, the second chances are not always sweet.
- That the belief “It takes money to make money” is actually uncreative and lazy, and
- That impulsive and thoughtless spending while living by YOLO and bombing your bonuses while acting like a millionaire for a day is irresponsible.
*If you don’t understand, feel free to scroll up and read the whole thing, or listen to the podcast!
We can’t hack our way into wealth unless we say goodbye to these bad attitude towards money.
Hey everyone, Thank you so much for taking the time and joining me here in PaydayHacks!
IT’S ALMOST CHRISTMAS!
Let’s all be extra-conscious of what we’re spending this time around so we won’t start the New Year in a bitter note. 😀
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Got any thoughts on what other Money Beliefs can Make You Poor Forever?
Leave them on the comments below! Or find out next entry.
Thanks again and see you!