.. con’t.

Here are some hard to swallow facts as well: the level of savings of Pinoys are well below many of our neighbors, consumer debt is rising in an alarming rate, we are not preparing for retirement, number of people with financial investments or insurance remains to be one of the lowest in Asia – in short, the average Pinoy is not prepared for the future. The growing number of seminars and books on personal finance is encouraging because it really does make a lot of sense. However, it is also discomforting at the same time because we need to tell people what they should already know for themselves already. Sometimes I find it silly that people need to be ‘tricked’ by many mindset alteration and motivational gimmickry just for them to be responsible enough to handle their finances. People are being duped that there is a secret to achieving wealth and financial freedom through the internet, seminars, speakers, books and all that. Just like Inception, many of today’s folks need to escape into fantasy land for them to achieve some peace. They spend like there’s no tomorrow and when they realize that they are headed south, they frantically grasp on illusions like new age hogwash or believe some individual who claims to unlock the ‘secrets’.

We need to wake up to our reality that we are responsible for the actions we take in personal finance and in life in general — and that’s the reality! There is no secret to achieving financial freedom and there is no short-cut – it is a process and we build it little by little by the actions we take. There’s no substitute to industriousness, prudence and discipline, to believe otherwise is full of folly.

In life, we can take the road of dreams but the fact remains that we need to wake up at some point. Take a hold of reality and be deliberate in the path we take. Work hard, be disciplined and put your faith in the source of real happiness, Jesus Christ – that’s a reality that will always be better than any dream.

My wife and I had a date a few nights ago and it was spent watching the movie Inception. I was not too keen on watching that movie because I have always remembered Leonardo Di Caprio in his epic role in the movie Titanic — let’s just say I’m not a fan. However, my good friend and soon to be financial engineer Louis Chingcuanco was raving about this movie so my wife and I decided that watching it will be our date.

Movie was good and visually exhilarating although it made me a tad dizzy. The plot was well written and I would say that we thoroughly enjoyed the movie. My friend Louis was correct to say that it was really a ‘must-see’ flick. I like watching movies with my wife because I like to date her as often as I can afford and since movies are not too expensive, we can do this more often.  Being a financial planner made me a cheapskate too, haha! We often advise couples that they should always have dates because it helps the relationship a lot but we also caution others about unnecessary and unplanned spending – watching movies is a good compromise! My wife is happy with a simple fast-food dinner and a movie for a date, I am truly blessed.

While I like the movie, watching it left me pondering about many things. The movie really imitates life today and how many people are so indulged with escapism. The movie was about the power and complexity of dreams and the difficulty of discerning what reality is all about. In the area of personal finance, many are also trapped in the world of escapism and succumb to living a life of fantasy they can hardly afford. It is a common fact the country’s biggest problem is poverty and yet we see facts like these: the average Pinoy changes his cell phone every 8 to 12 months, expensive coffee shops are mushrooming all over the metropolis, malls are sardine packed with people, etc. The facts belie our true state and I concur that the reason for it is because many of us are living in a state of dream and hardly in touch with reality.

… to be continued

Recently, we were reminded that we need to instill stricter discipline in the area of savings for our children. In a recent business trip in Hong Kong, my wife chanced upon some nice piggy banks and she bought 2 to be brought back home. I was under the impression that my wife bought it for our young children but I was surprised when she told me that it was for us, not for the boys. She reminded me that our children must see us being faithful in filling up the piggy banks so that they too will follow suit. I thought that I was doing a good job in reminding my small children to save but apparently I was wrong. When my boys saw that their mom were faithfully adding coins and bills in or piggy bank, they became more conscious in adding to theirs. I saw my young boys more passionate in filling up their piggy banks now, more than ever. To my surprise, I also saw my 2 teen-aged daughters start their own piggy banks a few days ago. While we always remind them to start their storehouses earlier, we sometimes feel that it falls on deaf ears. My daughters’ participation to the Blue Chip, a financial literacy program for the youth also encouraged them – a program we suggested they attend. If we see that our children learn how to save, we can be confident that they will have a bright future ahead of them.

Why are so many of us finding ourselves wanting? Why is it that we find ourselves trapped in life’s maze? Why are so many of us lost? This is true not just in the psychological aspect; it is also true for our financial situation, as well. Why are we always lacking? Why are we buried in debt? Why are we unsure of the future? These are common questions we often wonder about, me included.

Here’s a thought: If we were guided and taught properly as children, would we become better adults? What if someone instructed us patiently in the area of money management in our youth, would our financial standing be better today? What if we were raised as a disciple of Christ in our formative years, would we have avoided a lot of the mistakes we foolishly found ourselves into? I don’t know about the others, but I can definitely answer YES!

We need to be deliberate in teaching the next generation—help mold values that will be critical for their future. How? Teach them, remind them and let them experience the learning by assimilating how we live our lives.

“Tell it to your children, and let your children tell it to their children, and their children to the next generation.”— Joel 1:3, NIV.