Breaking the Cycle

As I make this post right now, payday is just about a week from now for most employees, and for others, probably tomorrow, or every day if you are someone earning everyday from your business or your self-employed profession. As I talk to most people about how payday has blessed them from top to bottom, they often share the good times, with so much to spend for recreation and to relieve stress from the long work. Often, they speak of the times they have to pay others first, through debts incurred, whether necessary expenses or not, or even any outstanding bills that has to be settled first, like mortgages, monthly bills, and health maintenance.


Regardless of how much money they have earned, most of them end up with little or no more money left to cover their daily expenses and other matters. They usually end up waiting for the next payday to receive another set of income, and the system goes on until financially "free". While some of them would set aside for savings, which I am happy to hear also, questions will always be raised raised. Some of them are - how much are you saving from your income? Are your savings really "savings"? And for what reason/s are you saving?


Life has always been a cycle. Humans start out as babies, the become teens, and then they are old enough to decide for themselves what they want to do in life, procreate, and the cycle goes on and on. Of course, this takes time in order for such cycle to take full circle.

Running in Cirles

Just like life, money, apparently, faces its own cycle on man's financial aspect of his life. It is this "money cycle" that people get trapped into - receive their paychecks, spend, spend, spend, then "save", then go into debt when things get difficult, receive paycheck again, and so on - and somehow they can't find a way to break free. Robert Kiyosaki, author of the best-selling Rich Dad Poor Dad, would famously call this cycle the "Rat Race".


Like a wheel where the rat runs on it endlessly like a laboratory experiment, this is a situation that I do not want to see people in.This problem will have long-term implications where trapped people end up paying the price for not being able to get off and get what they want. To be free from the endless cycle of living from paycheck to paycheck, making ends meet and achieving the dreams and goals you have for you and your family will take a lot of hard work and time to getting the life of financial freedom.


With the emphasis of time above, don't expect to have a huge financial overhaul overnight, unless you win the lottery, which really does not make any difference (you will realize it in a future post). If you want to have a turn-around of your financial life for a brighter future, I can suggest of two ways where you can get help. Of course, time has to be exchanged for these methods, but the time invested for them will be all worth it once applied and worked on.

1. Financial Literacy

How much do you really know about money? Do you know how money works? Robert Kiyosaki points out that most people struggle financially because they only know how to work for money, but never learn how to make money work for them. Most people get enslaved to the endless cycle because all they can rely on for accumulation of wealth and sustaining for themselves is the income they get. But there is a much bigger opportunity waiting those who want to learn how to make money become a tool to work for them.


If you are one of those people who need this lesson, I suggest you go into financial literacy programs. Unless you operate on a closed mind, you will be opened with the world of money, the risk of not learning how to not just save, but invest, for your long term ambitions, and become familiar with the different vehicles available for you to take advantage of. Going into these seminars can help you for your own good. Even just reading books on personal finance can be a very big investment in your part.


While most people would dispute that going past the traditional method of personal finance (work-spend-work-spend-etc), in short, investing your money or putting it somewhere else would be risky, the Rich Dad Poor Dad author would reply with "the lack of financial education is risky".


Whatever you do with your money always entails risks (remember that), and becoming financially literate can help you minimize these risks. While ignorance to the law excuses no one, the same thing applies to money and how much you are going to lose out of it will be your problem to deal with.

2. Financial Planning

In the first place, for what reason are you working for money right now? Is it just for experience needed to get to greener pastures, to sustain yourself since your parents are not funding you anymore, or simply to have something to do in your bored life?

If any of those reasons fit your current situation that you are in, you will eventually realize that you will need more than just those reasons above for earning income. This is where financial planning comes in. As early as you are in your first week of work or still unemployed, creating a map of what you want to do with your money will set your mind on what is most important in your life and how you are going to get there while going through everything that life throws at you - debts to pay, sudden loss of loved one, hospitalization of your son, etc. This will create a way to wake you up in the morning for, because of the goals that you have uncovered from within that you need to work for and prepare for them.


Disregard financial planning and you allow these unforeseen events to overwhelm you that you may never recover from, only to wake up realizing that it's too late. I've heard several people give positive remarks about financial planning, about wanting to do something about their messed up financial lives, only to say that "I'll start when the time is right" or "I'll just think it over".


Of course, planning is useless without taking action. You can plan about the plan you have in mind about a new house, your dream retirement or providing kids college education, but without doing anything as early as possible, you will lose track of your money and end up not achieving them all.


The road to financial planning starts with a decision from within to recognize your goals, ambitions, dreams in life that you want to provide for yourself and your family. Don't be surprised to be disappointed that you are not  able to achieve them because you did not do anything for it in the first place. A talk with your financial adviser can help you plan for your future and give you appropriate plans for your own good.




Remember that there is really no quick-fix solution for your financial life, especially this article. Taking control of your money instead of money taking over you can make the difference from becoming broke and financially free, and even possibly wealthy. If you feel like you have been trapped in this crazy cycle that hinders you from making the most out of your income, give yourself the time to learn, get mentored and take action. Then you can break free from the cycle and not have to worry about money again!





P.S. Honestly, I am still making my way out of the Rat Race, but my quest for financial wisdom and faithful planning and management of my money will never cease until I achieve what I need - and want - in my life, especially in the financial aspect. I advocate this to you, in the hope that worries about whether you would still be able to get what you want in life will be removed and that there is still hope, regardless of age, work, or situation in life. See you outside the Rat Race!