When I was at 3rd year High School, one of the subject we had that really get the nerve out of me is Accountancy. I don’t even know why we have such subject, but they said that is “part” of our T.L.E subject, so we just have to pass it. I ended up liking the subject because of the “Asset, Liability and Credit” part of the subject, making us feel like real accountants solving real numbers. Here’s a real catch, every time we fail our Accountancy exam, we have to PLANT root crops (kamote leaves) in our school backyard as a sign of our “kamote grades.”
As an adult today, I can still remember how I messed up my Accountancy subject and not applied what I learned there. It could have helped me with my financial planning which I have to admit I’m not an expert yet. And many young professionals nowadays are having a hard time to set their financial plan too. In fact, schools don’t usually teach financial planning, they only taught us how “make money” through entrepreneurship and employment. That’s why when disaster comes to the family, we ended up lending money that results in many debts and poverty.
Why is important for young people to learn Financial Planning? Financial Planning, in particular, is like planting. You have to deliberately take one learning at a time like “sowing seeds” and take action by simply digging the soil and plant those “seeds.” So when the rainy days strikes, you have fruits to “reap” and use.
Does it sound complicated? Here are the points Millennials like you should consider why you need to start “plant” your money today:
1. Life is so UNCERTAIN
A Farmer usually plants for one “major” reason: TO PROVIDE FOR THEIR NEEDS. Us millennials don’t need to learn what our physiological needs. It’s already in-born in our DNA that we have needs to fulfill in our daily lives (food, shelter, clothes, and for us Millenials, a WiFi connection). And all those needs, whether we like it or not, requires money. How do we earn money? For starters, we were taught by our parents to work in a company or build our own business. After we earn that income, what do we do with it? We usually start spending it with our needs. When our income gets bigger, so does our spending, and the cycle goes on and on.
Only fewer people in our population in the Philippines are taught to save and invest their money. That’s why many families from the old to today are being poor because of unwise handling of money. No wonder why many of our senior citizens today are living dependent on their kids without enough money to live their last golden ages. When the breadwinner of the family dies or calamities strikes in, the income or cash flow stops.
Young people, I can tell you many disasters my family went through (and even today) that related to money. Looking at the news today, it seems like death and calamities are so inevitable, we just know that it will happen. So while it’s not yet happening, better prepare and start planning your finances. It’s better to start something than none.
2. There’s More to Life than “WORKING” for your Money
For ants, there’s no bigger reason for them to work hard for their food during summer time. They just know that when the rainy days start, they have food in store for them. In the Bible, Ants are considered are one of the “exceedingly wise creatures” God created because of their wise response in dealing with disaster. For us young people, we don’t usually teach by our parents to work for our make our dreams come true. In most cases, we were wired to work and be employed to earn an income. It’s all about provisions. So think about it, if we work to earn a living, then disaster strikes in our lives, what it would be its effect on our income? Most likely our cash flow will diminish the same way as our employees.
So the reality is this, employment alone while working the same routine and getting the same salary will not take us further. If we want to make our make big breakthrough for ourselves and our family, we have to start doing great things too. But sadly, most of us are expecting great things out of small routine, again and again, that’s what you called INSANITY. Just like planting a mongo seed, expecting it to be a mango tree. Let’s stop this deception and start making the most out of your money. Start knowing what your big goals is and create a discipline for you to prioritize saving and investing. Because at the end of the day when we have our own family and get old, we want our hard-earned money to work “for us,” not the other way around.
3. PLANTING MONEY will teach us GOOD CHARACTER
A rich and poor man can be differentiated not based on their possessions, but what inside of their hearts. I saw rich people who are kind and poor people who are arrogant. So regardless of what we have in our bank account, everything will boil down to our character. The character is who we are when no one is watching. The way we handle our money will determine our character as an individual. Growing up in a family with unstable income teaches me to handle my money wisely. I learned to save most of my allowances to pay for my school projects, field trips and so on. In a young age, I learned to do errands to other people so I can earn more money. And that is something you cannot just teach to young people today with all the technology and social media.
When you start saving and investing, there’s a lot of discipline and character that will develop in you like patience, perseverance, and self-control. It will not come easy at first because of the temptations and testings you will face, but it will be all worth it once you see the growth of your money. Your perspective will change and you will see money differently when you start saving and investing.
As an adult, I learned many things I should have done in my money when I was starting working. And it should not happen to you as well. So before a disaster happens, better start digging (work), sow those seeds (save and invest) and reap more than what your income can give. Don’t waste your time and make the most out of your money by making brighter choices for you and your family. Because if you fail to plan, you plan to fail.