QUICK NOTES ON PERSONAL FINANCE_7.9:
Some say this is a cliché but why use it not – wisdom still rings in it!
“Shoot two birds with one stone.”
The once skeptical Carl disagreed with this once upon a time in his struggle with his financials.
Carl knew about savings and investments but he said that he is not earning much that he can have something to save and invest. He says that he earns P10 but he spends P15. But funny if you try to review how he spends to what he calls, “Well, they are not wants; they are just ‘extra needs'”.
He puffs two sticks a day. He drinks a bottle or two of beer once a week on Saturday nights. He spends just some bucks for coffee and latte at the classy café.
Carl says, “I just do the ordinary. Well, I am not like those that puff packs of cigarette a day, those who drink half a case on a Saturday, and those who buy his favorite latte everyday!
Carl is not bad after all. He is just like any other man in town. But check again…
He knew that he needs to save and invest. But he says he cannot do it.
How about the those that he spends in his “extra needs”?
Cigarette? – Uhmmm, how much is one stick now? I remember P1 can buy 1 when I was a little boy. (A bully at the basketball court once ordered me to buy one for him.) So let’s say: P2 a week, P8 a month.
A bottle of beer? Say, P30 x 2 bottles x 4 weeks = P240.
Coffee at SB: P150 x 2 days x 4 weeks = P1,200.
Total: P1,448 a month.
Note, the amounts are even understated. A lot!
Not that big, eh? But hey, Carl can save that. And once he has enough for his emergency fund, he can go on with his investments.
So why can’t Carl just hit two birds with one stone. Quit his extra spending habits so he can save and invest and yeah – I bet, he can even lose his fat belly!
It did not happen overnight. But then,
One day, Carl did the right way and then shared with me, “I shot two birds with one stone – I’m now healthy financially and physically!
Call it a cliché, but it is not a passe!”
The best time to start is not tomorrow, but today!
…helping young minds live life!