So I worked on my story-telling skills, and it was good for a start. It was a story that was trying to prove a point. A point that has long term financial implications when taken to heart the lessons learned.
If you were brought here by accident, and you have no idea what you are about to read here, it is highly recommended to read the first part of this 2-part blog series here.
If you have read the story I just made a few days ago, then you are prepared to understand the lessons and the interpretations of the characters, situations and places presented. In personal finance, especially for protection and investments, a great way to make people understand it is through a simple story. And those involved in the story.
So let's dissect them one by one:
Manila
The capital city of the Philippines is commonly the departure area for places far and wide in the island of Luzon. The city represents "where you are right now financially". Some people may not know where they want to go, but in fact they do not even know where they are in the first place. How do you expect to achieve financial freedom when you don't know what you have, what you are capable of, and the resources in possession that can help you get there?
Always determine where you are financially. You can't just hop into executing a plan when you don't know what you have. If you need cashflow, investment advice, or resources, gather them up, because there's a long road ahead.
Baguio City
It is the Philippines' Summer Capital, known for its cool climate even during the hottest time of the year. Now you know where you are right now, what if one day you don't know where you are going? Some people go into investments without planning what to do with it once it hits its target amount. This is a weak declaration, thinking that by just gathering a lot of money through different financial instruments, that is the time to think over what to do with it.
Take Baguio City in the story as your financial goal. If your goal is to use the money to settle down, build a house, provide education for the kids, or prepare for an amazing retirement, then go for it. That way you become more determined to set aside cash because you have a goal in mind which you want to have.
And remember: think long-term when investing. Don't expect it for 3-5 years. Go for 10, 20, 30 years. The longer the time, the better chances of harvesting more.
By Foot, Bicycle, Plane, Bus
From Manila to Baguio, there are numerous ways of getting there. They depend on the fare, the availability, schedule of trips, and the time it takes to get there.
In achieving your desired goal, there are a lot of ways of getting there. We call that financial instruments. Investments. Stock market. Mutual funds. You name it. They largely depend on the time it takes to get there. The potential growth of your funds. How much you need to invest to realize the dream sooner.
When in doubt, always feel free to ask your expert financial advisor. Take the time to learn more about the economy's movement and how it affects your investments and your goals. Always remember to never take your eyes off the price.
Planning
Napoleon once said that preparation is half the victory. With proper planning of where to invest, how much to invest, when to invest regularly, you could very well be on your way. Have the discipline to invest, because you are not investing to just grow your money or beat inflation. You invest because of a dream, a goal that you and your family want to achieve.
Two buses
One bus has a protection benefit that, in case of accident or death, the bus company is giving out lump sum benefits to the surviving family members of the passengers in the hope that the family can continue its standard of living after the loss of a loved one. The other bus does not have any.
Wealth is built in decades. You never know what could really happen. We can do the planning and investing, but without preparing for any disaster, you could end up on the losing end of your bank accounts. You may want to safeguard your investments so that they can continue the growth they deserve to enjoy.
Driver
During trips, it is always highly recommended that you know the bus company, its reputation of drivers, whether they are safe and defensive and they make sure your trips are worthwhile and accident-free at all times. If it's the other way around, well, you know what happens.
There will be times when you would be lured into an investment opportunity that may sound too good to be true. Those that give you high yield returns on your investment on a short period of time. Those that hype up so much because other people are joining that you end up getting along the ride. Even worse are those that are not legally and duly registered by a governing body to be an investment vehicle.
As stated previously, take the time to study what you are about to invest. Regret is always found at the end, so is with the pain of losing money for something that is just a "good" deal.
Tour Guide
In your life you will be meeting a lot of tour guides. Those that guide you around the city. Those that guide you to your new house.
There are those that will guide you towards your journey towards financial freedom.
Find those people. Get mentored by them. Make the right decisions together with him/her. Don't wait for them to come to you. Don't go for those who irritate you and bother you all because of the sale they are after. Find the authentic tour guides. Those that are willing to help you every step of the way.
It is only a matter of time before you start thanking your tour guide for getting to where you want to be.
Hoping you get on the right bus to your journey towards financial freedom.
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