Financial Wellness For Everyone

One of the fastest growing industries in our country today is the business process outsourcing sector. It is frequently cited as a key pillar of our economy. Indeed it is a unique industry in the sense that it responds to the requirements of a globalized, interconnected world. But there is also the downside around the impact on people and the inherent lifestyle changes it spawns. Like how young people are paid so much and yet are able to save so little and worse get into debt.

How can we be a helping hand to this sector so that we can ensure that the young people who join this industry continue to live healthy meaningful lives?  How can we reach out to young professionals and entrepreneurs who have just joined the work force so they live value centered lives?

One of the elements of an integrated life is living a productive working life. It also means knowing how to care for the financial resources or income one derives from work to serve oneself and family.

For this article, I interviewed Chinkee Tan. He is a well-known media personality, popular with young people as one who gives solid and valuable advice. He is dubbed as a wealth coach. He will soon lead the first of the learning series on "Business and Life Skills for Everyone" that kicks off on July 26 at the AIM Conference Center.

Tita: Give us  some of your outstanding experiences and background that led you to specialize in personal finance and wellness consulting?

IN EVERY DIFFICULTY LIES OPPORTUNITY

Chinkee: I got exposed to the financial realities of life at a very young age. When my father's business collapsed, my mom took his place, she took on the role of  bread winner and I was  helping her trade. She was selling toilet paper wholesale and my role was to be the delivery boy of my mom. I can still remember going through grade school with not enough lunch money, so I would peddle my toilet paper business to my classmates, teachers and principal. That started my entrepreneurial spirit and also my dream and passion to become rich. But in order for me to become rich on the outside I need to be rich first on the inside. I need to invest in educating myself about financial education.

Tita: What are the 3 things that a call center agent or young entrepreneur or starting professional  do to ensure financial wellness and a solid future?

CREATE, HANDLE, GROW MONEY

Chinkee:

Create Money

The first step to financial wellness is to acquire the knowledge, the skills and the ability to earn money.Some say money is the root of all evil but the good book says "The love of money is the root of all evil." But if I may add by saying "The lack of money is the root of all evil." We can never be financially well and free if we do not have money to start with.

Handle Money

It does not really matter how good we are in creation but if we do not know how to handle our money, it will be useless.  At the end of the day, "It is not how much money we create but how much money we save."  Money skills are important in order to learn the basics of personal finance but I realize being a wealth coach for over 7 years that even if we teach people the right skills, unless they change their attitude towards money things will remain the same. For things to change, something needs to change. 

Grow Your Money

The third and final stage in order to create financial wellness and independence is the ability to make your money grow. There will come a time that you will stop earning money. We all know for a fact that if we do not learn the ability to  make money work for you, there will come a time it will be used up. These are the three most important building blocks that a person need to learn in order to achieve financial wellness.

Tita: Is it necessary to have a finance background to excellently manage one's finances?

Chinkee: One of the greatest lies that people often hear is that financial literacy is only for people who are well educated  or those who have taken special courses in investment banking. The fact is financial literacy and management should be for everyone.

Tita: When should you learn about financial management?

Chinkee: The moment you start spending money, you should already learn how to handle  your money. We should learn how to handle our money or money will handle us.

Tita: How much does one have to save without feeling deprived?

Chinkee: Savings is not about deprivation.One of the misconceptions of savings is that you need to live like a miser in order for you to successfully save. Savings have never been about deprivation.You can still enjoy life and buy anything you want as long as you put it in your budget.

Many people confuse savings with budgeting. They often think that  this is synonymous with one another. In reality, it is a world apart and very different. Savings is setting aside money for future use while budgeting is simply money allocated for spending.

Tita: A lot of young people today have pawned their ATM cards (where they draw their salaries) to lenders causing them to be demotivated at work? Can you suggest a process that could get them out of debt?

You can get out of debt. If you can't swipe it, you can pawn it! Pawning ATM nowadays are not a rare occurrence. It has been prevalent practice so that people engaged in it think the situation  is already normal rather than abnormal. This is just like using your credit card recklessly or doing cash advance. The major difference is that you pay higher interest. 

There is a four step process on how to get out of debt. First, you  have to make  a major DECISION. You have to decide first that this is not the lifestyle that you want to have. If your salary is not enough, you resort to borrowing. Once your salary comes out, you pay your debt and then it goes back to having not enough. Then it goes back again creating a vicious cycle.

Getting out of debt is more of an emotional rather than a logical thing. You need to come to a point in your life that you resolve to change your situation. Tell yourself you are sick and tired of living a life of borrowing and paying. Until you come to that point, things will never change. There are 3 more steps that you can learn in our live session that we will do on July 26 from 1 to 7 pm pat the AIM Conference Center.

Tita: What sort of investments would you recommend to a single employee with a take home pay of P 15,000?

Chinkee: The first major investment that you can make is in YOURSELF. Invest in financial education. Read books, attend seminars and ask people who have been there and done that. As I often tell my students "Knowledge is money and money is knowledge." If you want to make more money, you need to acquire more knowledge. Because knowledge empowers you to make wise financial decisions and choices.

It is you who is going to make the decision where to invest and put your money to work for you. If you do not know what to do, how can you make your money work for you. Passion and excitement will not bring you the millions. Often times they make you lose the millions as well. But knowing what to do and where to invest is one of your major steps to financial wellness.

Tita: How much does an engaged couple need money wise before one gets married ? before one decides to have a baby?

Chinkee: This is one of the frequently asked questions in my pre-marriage counseling seminars. There is no such thing as a an ideal amount to save before you get married. If you are trying to hit the ideal amount, you might reach 60 years of age and still  be single. My answer to this question is "As long as you are of legal age, have a stable income and willing to live within your means, you get married." 

Preparation is key to success in financial planning.

You must be able to have the ability to foresee or forecast upcoming expenses.

Having a baby is one of the most expensive investment a couple will go through 

in their financial life.

Here are the things that you need to expect.

Pre-delivery - monthly natal check up and vitamins the mother needs to take.

Delivery - hospital expenses /  medical fees / doctor's fee / normal or Cesarean delivery. Post delivery - monthly check up for the baby / vaccination / diapers / infant formula milk / vitamins. And many more ...

Tita:  How do you see the investment climate in the country? What would you advice in terms of investments?

Chinkee: The investment climate of our country is at its finest. The trust factor in our government is also at an all time high. We have been consistently paying our country's debt thus increasing the foreign investor confidence to lend more or invest more in our country. We are  just one step away to become categorized as an investment grade level  country in Asia Pacific. A major sign is the growth of our stock market plus the growing BPO industry.  

This is the time for us Filipinos to take advantage by investing our money locally not internationally. Even the major business tycoons can smell our local economic growth. Unprecedented growth of the real estate company has been building high rises and low cost housing left and right. Our local tourism has also been booming, new buildings like malls have been popping out like mushrooms.  In terms of personal investment, there are so many financial tools that you can invest and allow your money to grow. Allow me to give you one of the major rules that you cannot violate in investment.  

Rule Number 1. Never invest in something you do not understand no matter how profitable it may be. You cannot drive a car with your eyes closed.  It is just a matter of time before you meet a terrible accident. That is exactly what most people do, they invest with little or no knowledge at all. They lose all of their life savings in the process. I may sound like a pirated dvd but financial wellness is the result of a well informed financial decisions and actions.

Whatever happens on the outside is only a result of what is happening in the inside. If you see a person making bad financial decisions and choices, it only reflects what is really happening in the inside. If you want to know more about increasing your FQ (Financial Quotient) on how to create, handle and grow your money. We would like to invite you to be part of our Learning Event set for July 26. Please contact. phone nos or email.

Tita: Thank you for all the useful tips.