Understand The Difference Between Assets and Liabilities

A Good Man Leaves an Inheritance to His Children's Children

As good parents we ought to try our very best to leave inheritance not just to our children but to our children's children. But, for that to materialised in the future, the first step I guess is to educate ourselves to become financially savvy as early as possible. One thing I learned so far is that time is really valuable if not the key for it to become reality. The early we are financially educated and is acting upon it the longer the time frame our savings will work for itself. Perhaps, you don't have an idea or confused of what I'm saying right now but, once you understand how compounding money works you'll appreciate more what is TIME in relation to savings. Have you known someone who just spend 1 year worth of their salary for one grand extravagant feast? Yet, not bothered about the expenses incurred because as he or she say, that 1 year worth of salary can still be earned next year. Well, I guess it's okay if:

(1) We have accumulated enough savings already, and that 1 year is just a pinch of our savings 

(2) We are young and our parents are rich and money is not really an issue 

(3) Our time in this world is counted, I mean what for is the used of savings if by few years we are gone anyway unless of course we're saving for someone else 

(4) Though not rich, but still young and still have few years to waste for foolishness. 

But, if we are just trying to make an impression and is not one of the mentioned above, who are we fooling? I guess ourselves. Being financially educated, we're supposed to realised that at least small portion of that 1 year worth of extravagant feast could have started growing or already have grown by now. 

What's my point? If we have learned to become financially savvy after throwing the feast at a very late stage of our life, we'll have no enough time frame for our savings to grow, this time around, time is against us no matter how we try. So, we end up depending on our luck (lotto and other alike) or we depends on our children's and perhaps their children's too. 

How does this relate to the subject? If we intend as parents to leave inheritance to our children's children, we better be financially educated and ACT upon it while time is still in favour of us. Otherwise, no matter how we try later on, like what I said, we'll either depend on luck (lotto) or perhaps the government (pension) or on our children itself or ALL. 

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Two of Mostly Misinterpreted Verses in Bible that Drawback Prosperity

First this bible verse:

Genesis 1:28 New International Version (NIV)

28 God blessed them and said to them, “BE FRUITFUL and increase in number; fill the earth and subdue it. Rule over the fish in the sea and the birds in the sky and over every living creature that moves on the ground.”

Reading this verse, I remember a father who hardly cope up in providing his family daily needs, yet, almost yearly the wife give birth. And, when asked why keep in reproducing even if cannot afford to take care of the incoming child? The answer was, because it's the will of God to multiply therefore it's a blessing and God will provide. Few years ago, it was also my notion so, I assume that even now someone or perhaps great majority of us still have this notion. But then, thankfully someone made me aware of the verse and noticed that before increase in number it does say be FRUITFUL first. What does fruitful means? In dictionary, one of the meaning simply means successful. So, it implies for those who believe and practice christianity that before increasing in number, the head of the family ought to be successful, prolific or at least capable enough to provide for the upcoming offspring. Now it make sense, God won't simply say increase in number without thinking about the needed provision, right? After all, God as characterised in the bible is a planner to our benefit "Jeremiah 29:11 For I know the plans I have for you," says the LORD. "They are plans for good and not for disaster, to give you a future and a hope"

2nd: this verse.

1 Timothy 6:10 New International Version (NIV)

10 For the LOVE of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.

Most probably, you already had heard about this one. It simply says, money is not the root of all evil, it's the LOVE of it. But, I think even after realising this verse, when we start to chase after money we tend to love it. No wonder, the bible also says in  "Matthew 6:24 - No one can serve two masters. Either you will hate the one and love the other, or you will be devoted to the one and despise the other. You cannot serve both God and money". So, is that it, I mean is it therefore better not to chase prosperity? I believe this again is a common notion for Christians alike, this is maybe why a lot of those who strongly believe in Christianity and practice the faith are either lacking in motivation to chase prosperity or, care less about it as long as they can go about their daily lives without really thinking and planning about their future and their children's future. Yet in contrary, He plans to prosper us "Jeremiah 29:11". So, is there ever a way or a solution so that whenever we try to chase prosperity we will not be pierced with many grief? Well, I think there is, it's GIVING. Giving while chasing prosperity will I think help us to not be greedy. 

Perhaps, these are just two of the few other bible verses related to finance that I think mostly misinterpreted, thus, Christians who try to practice the faith as according to the book somehow (not all though) drawback to chase prosperity

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"Bahala na si Batman" Attitude in Personal Finance

If I'm not mistaken "Bahala Na" approach is one of the Filipino cultural trait which is situationally based, that is to say, its meaning can best be understood in a situational setting. In this regard, I would like to pin point the "Bahala Na" attitude of us Pinoys towards financial handling given the benefit of a doubt that, we actually have sufficient enough to cover our priorities only that we mismanage it.

It's quite funny sometime that even the famous superhero is being involve with this expression. Like the "Bahala Na si Batman", perhaps, it is a funny expression for us to comfort ourselves when we are caught in a compromising situation where it seems like no immediate solution. Or, is it simply a sign that we are lacking in planning in which we tend to anyhow do or decide on something without thinking of the consequences that may arise later? In relation to personal finance, this type of attitude could be problematic not just towards ourselves but also to our friends, neighbours and relatives, in which, sometimes we are not aware as we tend to don't care as long as we solve our own first. Like say for instance, just after our payday instead of doing budgeting to plan our expenses, we spend something that is really not within our priority affecting the rest of daily expenses and, we know that it will, so at that moment, we tend to just say "Bahala Na si Batman" implying that somehow somebody or comically Batman will take care of the rest. Though, somehow it could ease the feeling of worries nevertheless still is an illusion and, I guess we are aware of that. So, what we really mean I think when we say this expression is that, we are expecting someone, our friends, neighbors or relatives perhaps to lend us their help monetarily should we run out of money already.

The bottom line I guess is that to prevent this kind of compromising situation and to avoid disturbing someone. Why not learn to plan our expenses via effective budgeting, it may seem hard at first but like any other instances in life, it's always not easy in the beginning, only by constantly doing it will make it slowly easier until it become a habit and, if it become one, we might even feel like our day is lacking without it being done the same as any other habit would feel. 

Click to read: The first Step: Manage your Cashflow

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