Reading Rich Dad Poor Dad book by Roberto Kiosaki opened up a lot of realizations.
It is such a shame that even I graduated with a business course I still don’t know how money works and how can I accumulate a lot money besides basic employment?
I listen to the audiobook for free from Youtube just search for it.
Realization #1
Saving Money Felt Exhausting: So that is the reason why although, I know the importance of savings and no matter how I tried my best to save and live within my means I always felt exhausted saving money.
It is like a cycle, I tried so hard to save but at the end of the day, I felt I am not saving enough money to reach my goals (to be financially free).
Saving Money is never a good idea because inflation will soon eat up the value of your savings.
Realization #2
Second Thoughts About COOP: My primary perception here at COOP is that COOP’s outweighs the interest it gives than what the commercial banks offer.
Yes there may be truth in that, but I am still stuck to basic savings. Although COOP gives a little bit higher interest than commercial banks, COOP’s and Savings are still left out by the inflation we have here in the Philippines of around 4%-7%.
So even if I save a lot of money in my passbook account in reality, I still lose money every year.
Realization #3
The realization about Pag-ibig MP2: Pag-ibig MP2 is not comparable to savings and COOP in any way. The yearly interest one can get here is 7%-8%.
Check out these photos from Pagibig Year 2017
Pag-ibig MP2 is like a time deposit (5 years or 10 Years) and part of my financial goal this year is to add funds to it.
But I just realize that 5 years is not the time period I am willing to wait for my money to gain interest of around 7%-8%.
Everyone has different financial goals and all have different timelines.
For obvious reasons, a 40-year-old have different financial goals compare to a 20-year-old.
So I needed to find an investing platform that will meet my needs at a short period of time.
I will still continue with Pag-ibig MP2 but this time I will not be all in. I will diversify and put much of my money to where I think will yield the highest interest to fit my financial goals.
You might have guessed already as to where I will put my savings the most, but I will not promote it here because the chances of gaining are equal to the chances of losing the money.
And I don’t want to be in the position where I recommend and when you lose money, you will, in turn, blame me for the loss.
But anyway, there are a lot of platforms we can use to be financially free and they are out there.
Realization #4
My House is one of my Greatest Pride but It hinders My Financial Goals:
Going back home from abroad let me realize a lot of things.
Am I successful?
No.
In fact, I am almost broke.
But "at least I paid around 3 years of mortgage of my house".
How about savings?
No.
I don’t have any savings whatsoever.
I already seen a blog post about a house telling it is not an asset because in reality, money is going out to pay for the mortgage.
In simple accounting money going out of your wallet is a liability.
But I saw this post long after I tied myself on a mortgage to get a house.
Rich Dad Poor Dad book defines the word mortgage with its root term, which is “mort”, or “death”. It is from Old French and Latin word that literally means death pledge. Which kinds of makes sense because mortgage could last up to 30 years.
Moving forward to my mistake (since I cannot reverse my actions), I tried to minimize the impact by letting someone rent my house.
Financial Literacy (especially for minimum wage earners)
Rich Dad Poor Dad book explains the obvious things that I myself wouldn’t know if he doesn’t point it out through the book.
Yes, I have a bachelors degree in business but this doesn’t give me the ticket to be rich and let's say be a businesswoman.
How ironic isn’t it?
That is why being financially literate is very important in able to achieve financial goals.
That is it for now.
Thank you for reading all the way.
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