Cashing Cashing: Are You a Spender, a Saver, or an Investor?

The Story of the Three Salesmen

There is this story about three salesmen.

The first salesman was a spender, the second was a saver, and the third was an investor. One day, they were called by their boss and were surprised with a bonus of Php100,000 each for a job well done. 

The first salesman, who was a spender, went straight to the mall, bought the latest cellphone, and top-of-the-line gadgets. He goes home, and left with nothing.

The second salesman, the saver, is very disciplined. He gets his bonus and goes straight to the bank and deposits his money on time deposit. At 4% interest rate per year, his money grows to Php400,000 after 36 years.

The third salesman, the investor, gets his bonus and looks for investments where to put his money. He places his money in the stock market through a VUL, the mode of investment for beginners, with an average of 12% growth per year, and so his money grows to Php6.4M after 36 years.

Which one are you?

My Bad Financial Decisions

I, too, was a spender for a very long time. I have been employed for thirteen years now, and during these productive years, I spent all my money, payday after payday on buying unnecessary stuff. I have also made bad investment choices in the past, which I believe was a result of lack of knowledge and always acting out of impulse. 

As Robert Kiyosaki said, "If you want to be rich, you need to be financially literate." Read books, attend seminars, learn from people who walk the talk.

Your Investment is a Bridge to Your Dreams

Twice, I was offered a VUL, signed the proposals although I had ZERO knowledge about these things.

The first was from a bank. After more than a year of paying, the agent resigned (I visit the bank regularly), and the bank was bought by another bank. I misplaced my policy, and didn't know who to ask for another copy. So, I just stopped paying my premiums.

Second was from an insurance company tied up with a bank. Because I cannot say no to the agent, I found myself signing a policy again. After a few payments, and learned that I need an insurance more than an investment, and my policy does not address that, I stopped paying again.

Those were months of hard work going down the drain, just because these VULs did not address my needs.

Piece of advice: Talk to a Licensed Financial Advisor that you trust, who is affiliated with a reputable insurance company, and who will journey with you in achieving your financial goals by providing you an investment product that will bridge the gap from where you are now to where you want to be.

Thinking of Getting Into Business? Think Again, and Again.

Getting into a Multi Level Marketing can be considered a business, and there were times when I joined various MLMs just because their success stories were really enticing. It's overwhelming to hear rags to riches stories that occurred only in months! Also, I cannot say NO to my "uplines."

Lesson learned?

That there is no such thing as "Easy Money." Even these multimillionaires dedicated so much of their time for training and talking to a lot of people, and effort to be where they are now. Not everyone can do that. Not me. Besides, I cannot sell food supplements while I have been working in a pharmaceutical company for almost a decade now, and I cannot sell a prepaid loading system when I have been using postpaid all these time. It just does not make sense. And again, I lost money because I signed up to these MLM companies based on impulse.

Also, these MLMs have quickly come and go. Remember how they market these companies by telling you how soon you could make an "exit?"

Contrary to investing in the stock market, "Our favorite holding period is FOREVER" as Warren Buffett said.  

Not All Real Estate Are Created Equal

Many believe that a house is an asset because its value is assumed to always go up. Based on experience, I think otherwise.

Nine years ago, I decided to get a house. It was located 30 minutes away from the city where I have been working. It was one of those low-cost, no down payment required, loanable thru PAGIBIG for 30 years kind-of-thing that is often offered these days. Because my monthly amortization was only Php2,800, I thought of getting two units for Php5,600 per month total.

The plan was to live in one unit and have the other unit rented out. Because it was low cost, I spent a huge amount on replacing the front doors, tiles and windows for added security. Soon enough, I realized that it was too far and the road was not passable during heavy rain so I ended up looking for tenants for the two units instead. Contrary to what my salesman said that I can easily find a tenant, I had a hard time looking for one. Why? Because there were similar units that ask for lower rent since they were not modified.

After more than a year of paying, I sold my units at a huge loss.

For every major financial decision, always think long term. If you want to invest in real estate, think rental properties that will generate passive income. In that sense, a house really becomes an asset.

From Spender to Investor

I was never a saver either. I did not even have an emergency fund. then When I finally had the option to purchase my company car after five years of using it for only Php113,000, I had no choice but to borrow money from my mother-in-law. I sold the car for Php250,000, paid off debts, went shopping, and ended up with nothing again.

I began being an investor in March 2013 after attending a seminar by my mentor, Bo Sanchez of the Truly Rich Club. He said that there are a lot of opportunities for us to grow our wealth, we just need to recognize them.

Fast Forward to Today

As of this writing, with continued investment in learning and applying what I learn without procrastinating.

I have learned to create multiple income streams. Aside from my day job, I earn passive income from the stock market, from affiliate marketing, from this blog, and from agricultural investments.

I am free of bad debt, I have enough insurance coverage making sure that my loved ones will still be well-taken cared of financially in case I die too soon, I have began preparing for my retirement fund in case I live too long, I have investment plans allocated for my kids' college, I have money to spend on my simple wants, money to share to do God's work through my tithes that support ministries, and money to sponsor kids to school and participate in volunteer work through World Vision.

Take Control of Your Financial Life

Whatever financial situation you may be in right now, believe that there is hope to improve your financial life. Remember how broke I used to be because I spent everything I earn?


Start paying off bad debts.
Simplify your life.
Begin building your emergency fund.
Secure your future income through getting an insurance policy while you are still young and healthy.
Invest as soon as you can, with as much as you can, because time is money's best friend.
Recognize opportunities and create multiple income streams.
Turn your passion into profit, even just on the side.
Learn as much as you can.


Most importantly, stop procrastinating.

One Last Note

"The wise have wealth and luxury,

but fools spend whatever they get."

Proverbs 21:20

Make that decision TODAY and start preparing for the future TODAY. Remember that how your future will look like depends on what you do TODAY. All of this is within your control.


Be very blessed!


P.S. I hope you find this post helpful. Kindly click the SHARE buttons below and bless someone today.

P.S2. For those who want to begin their journey to financial freedom, send me an email at financialplanningforpinoys@gmail.com. I would love to share what I have learned and help you at whichever point you are right now. Thanks!