When dealing with money issues, one must always be aware of deadly behaviors that will cause financial havoc and I call them the 3 dangerous money attitudes: Greed, Fear & Ignorance.
Greed has been man’s downfall since time immemorial. When it comes to our finances, greed clouds our judgment and in many cases it can even make us compromise our values. In investing, greed makes one too optimistic on possible returns based on some experience or even the potential of remarkable growth. While the principle of risk & return always dictate the performance of one’s investment, greed will make one go beyond his risk tolerance in anticipation of fantastic yields. In business, greed makes one engage in cut-throat enterprise and often times have collateral damages like ruined business relationships and even legal issues. After all, it is the love of money which is the root of all evil (1 Timothy 6:10). In the movie Wall Street, Gordon Gecko made a famous line that seems to have been the mantra of many… “Greed is good” (‘That greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit’). Well, it is because of greed that there was the recent financial tsunami which almost put the whole world economy into chaos. In fact, the US has yet to recover from their financial crisis which was really a result of greed. Greed is often times the reason for our economic woes. Regardless of how we romanticize it, and despite Holywood’s dangerous seductions, greed is not good.
Fear is not necessarily a bad behavior. In fact, fear allows one to act in prudence and makes us check if we are already becoming greedy. The issue here is too much fear, or crippling fear. Many a times, people would not take any risk at all when it comes to money and they will find themselves with hardly any financial growth because of it. It is a common notion that Filipinos are ultra conservative when it comes to money and to prove a point, one only needs to look at where our money is actually invested – locked in 30 to 90 day short term deposits that give you almost negligible returns. While keeping your capital safe is important, we must also be reminded that inflation is constant and it will erode our wealth. To illustrate, let’s assume that you place your savings in short term placements like time deposits earning 2% p.a. and you don’t mind the low return because safety of capital is your paramount concern and you will probably keep the money there for maybe 3 to 5 years . Let us assume that during those years, the inflation rate will be at an average of 5%, you are actually losing real value in your money with the erosion of its purchasing power by as much as 3% per year. In the end, you will actually experience a real loss despite having no capital loss. In risk management, risk avoidance is not always a good choice because avoiding risk also means one can’t gain. I really like the Parable of the Talents (Matthew 25:13-40) – it is as a very good illustration of fear.
Just like greed, ignorance is a very dangerous attitude. While people lose money because of greed or too much fear (in purchasing power), people do so knowing what they are getting into. Losing money because of ignorance makes one well, ignorant. It is said that you should never ever, ever, ever, ever put your money into something you don’t understand. It is ironic that despite Filipinos being risk averse (ultra conservative), we are also prone to a lot of scams. Citibank came up with a survey that says our FQ or financial quotient is very low as compared to other countries. Financial education, though immensely important, is not on the top mind of our citizens. Schools look at financial education from a text book approach rather than on a personal finance perspective and many homes will not discuss money issues until the family is in severe financial situation. I counseled so many individuals that are in dire financial conditions and most of the time, the core of their problem is ignorance – financial ignorance.
So what is the solution to all these? Financial education and checking one’s heart. We need to live a life of purpose which will keep our greed in check. It is not hard to realize that our purpose goes beyond ourselves, isn’t it (Matthew 6:33)? Overpowering fear is an issue of faith – we need to believe that we are not given a spirit of timidity, but a spirit of power (2 Timothy 1:7). The only fear we should have is a godly fear (Psalms 111:10). As to ignorance, we only need to open our hearts and minds and embrace learning and seek godly wisdom (Proverbs 8:12).
Attend the Personal Branding for Finance Practitioners
July 8, 2011 RFP Office, Tektite Bldg., Ortigas, Pasig City
AN OVERVIEW:
This interactive, cathartic and practical seminar will help you understand, create and send out the unique brand that is YOU. Today’s business world is fast paced and so are the decisions and judgments we are making. There are more than a lot of business men and women, financial advisors, entrepreneurs both young and experienced bringing the same products, skills and services to your field in the industry. But why do some people still stand out above the rest? Best bet is that these people, consciously or not, have their own unique personal brand.
WHY SHOULD I ATTEND?
Learn from Randell Tiongson, one of the country’s popular names in personal finance, a columnist for the Inquirer and MoneySense, and one of the directors and founders of RFP Philippines. Randell will teach you the secrets to building, winning and transmitting your personal brand. After this seminar, you will have uncovered why personal branding is so important to helping you on your way to wealth.
PROGRAM OBJECTIVE AND BENEFITS:
Creating a personal brand for Finance Practitioners
Why is branding important
How branding can help your profession
How branding can result to higher productivity
Ways to be known beyond your circle
Ways to improve your personal brand
Case study presentation
Registration Details
Registration is on a first-come, first-served basis. Don’t miss this event, reserve your slots now!
Date: July 8, 2011
Venue: RFP Office, Tektite Bldg., Ortigas, Pasig City
Time: 1:30 to 5:00 pm
Contact Number: (632) 494 1322
NEXT GEN
By Randell Tiongson on June 14th, 2011
Events of my last weekend reinforced my passion to help prepare the next generation. I often feel that my generation has not done much for the next generation. One of the biggest mistake my generation can commit is not preparing the way for the next generation.
As parents, the future of our children is always foremost in our minds. I am actually looking forward to the day my children will spread their wings and explore the world and the only thing I can do is pray for them as they make decisions that will define their destinies.
Last Saturday, I partnered with a mother and son team to bring about a repeat of Blue Chip, a program that teaches the youth on finance and entrepreneurship. Christopher Young is only 17 and a junior high student, he took the task of organizing Blue Chip for his friends and acquaintances, with the help of his energetic mother, Karen Young. There were more than 40 young ones taking the program and all this because a young boy believed that a program like Blue Chip will really help him and people of his age. A supportive mother like Karen brings out the best in our youth as she guided him, supported him and co-labored with him to ensure that Blue Chip will be a success. When the organizing of the program became difficult as participants were not responding the way it was forecasted and sponsors were lukewarm in their support, Chris and Karen were steadfast in their commitment to Blue Chip despite the odds. The audacity of a 17 year old boy to mount a program like Blue Chip was inspiring — stories like these make me feel secure that the next generation will do great things in the future. Parents like Karen are great role models in nurturing successful children.
I was so honored to share the platform with other speakers who shared the vision for the next generation. My friend and Pastor, Jayson Lo touched the hearts of the kids by reminding them what is really important in life imploring them to invest in relationships and value character above everything else. Carlo Ople, the country’s most notable personality in the social media environment was a big hit with the kids as they really learned from someone who understands and share their passion on social media. Carlo espoused the role of communication for business and career building. Paulo Tibig encouraged the youth to dream and dream big and strive for success. He reminded the youth that success is not achieved overnight and those are winning strategies for success as an entrepreneur. Jaret Garcia shared his story as a student making money and the challenges he needed to overcome business challenges. My lecture was about financial management and investing and I echoed the value of discipline in handling money. A real treat that day was interviewing and listening to the young Anton Fausto, a 14 year old investment whiz kid who also shared how he manages his own portfolio. More than inspiring the youth, the Blue Chip speakers gave practical instructions in achieving successes in money and business.
The day after Blue Chip, I attend Sunday service at Victory Green Hills and was delighted that the topic for the service is about the next generation. A very youthful pastor named Bojo Bonifacio was preaching about the next generation using biblical context. Hearing Bojo was a treat – a young 26 year old pastor leads a throng of exuberant teens, raging hormones and all that and remaining to be relevant and yet grounded on biblical truth. I was in store for another treat when Pastor Bojo called for 2 women on stage, a teenager to pray for the youth and a mother to pray for the parents. Praying for the youth is my 17 year old daughter Gabbie, a freshman in college. She admonished the youth to be in faith and be steadfast in their faith as well as challenging them to follow the examples of Christ and not of the world. My beautiful wife prayed for the parents, petitioning the Lord to give parents the grace, patience, temperament and love as they are tasked with the difficult role of parenting. Hearing my wife and daughter pray one after another warms my heart and I can only thank the Lord for such a blessing.
I admonish everyone to do everything they can to prepare the NEXT GEN. The greatest atrocity we can do in this generation is to forsake the next.
Train up a child in the way he should go; even when he is old he will not depart from it. – Proverbs 22:6, ESV
Video recap of the June 11, 2011 Blue Chip courtesy of Kris Young.
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Greed has been man’s downfall since time immemorial. When it comes to our finances, greed clouds our judgment and in many cases it can even make us compromise our values. In investing, greed makes one too optimistic on possible returns based on some experience or even the potential of remarkable growth. While the principle of risk & return always dictate the performance of one’s investment, greed will make one go beyond his risk tolerance in anticipation of fantastic yields. In business, greed makes one engage in cut-throat enterprise and often times have collateral damages like ruined business relationships and even legal issues. After all, it is the love of money which is the root of all evil (1 Timothy 6:10). In the movie Wall Street, Gordon Gecko made a famous line that seems to have been the mantra of many… “Greed is good” (‘That greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit’). Well, it is because of greed that there was the recent financial tsunami which almost put the whole world economy into chaos. In fact, the US has yet to recover from their financial crisis which was really a result of greed. Greed is often times the reason for our economic woes. Regardless of how we romanticize it, and despite Holywood’s dangerous seductions, greed is not good.
greed or too much fear (in purchasing power), people do so knowing what they are getting into. Losing money because of ignorance makes one well, ignorant. It is said that you should never ever, ever, ever, ever put your money into something you don’t understand. It is ironic that despite Filipinos being risk averse (ultra conservative), we are also prone to a lot of scams. Citibank came up with a survey that says our FQ or financial quotient is very low as compared to other countries. Financial education, though immensely important, is not on the top mind of our citizens. Schools look at financial education from a text book approach rather than on a personal finance perspective and many homes will not discuss money issues until the family is in severe financial situation. I counseled so many individuals that are in dire financial conditions and most of the time, the core of their problem is ignorance – financial ignorance.
