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Since last week, my workmates and I have been computing, in anticipation (read: excitement), our payback incentives and profit sharing. Personally, for the past ten years that I have been working with my current employer, these are the bonuses I look forward to the most every single year.
Why?
Because combined, it is more than my 13th month bonus.
But then again, that is just the GROSS amount. Deduct 32% tax to get the NET, and all I could do is sigh. Although I am very grateful, 32% is still a lot of money.
There are only two things that we cannot escape from in this lifetime.
1. Death
2. Taxes
As I have mentioned in my previous article, I do not like ordinary money. This is because ordinary income is the income that I work the hardest for and I am allowed to keep the least of because of taxes.
68-Percent Money
The incentives, bonuses, profit sharing, and other forms of a paycheck, which are ordinary income, are what I consider as "68-percent money".
This is mainly because, no matter how much money you earn, the government always takes at least 32 percent of it or more in one way or another. Worse, it goes to the government even before you get your hands on it, which is through witholding tax. And with the remaining amount, tax continues on. You are taxed everytime you earn, spend, save, invest and even when you die. And when you do not have a plan for your money after you die, the government does.
Most of us do not know the difference so we keep on working hard for 68-percent money. There are even some who would go back to school for them to receive a promotion, and a pay raise. Simply put, they work hard, study hard, earn more, and end up paying more and more taxes because they work for 68-percent money.
As what the famous Rich Dad said, "When you get a raise, so does the government." Spending your life working hard for "68-percent money" is not the financially intelligent thing to do.
Think about it. Look for financial instruments that will give you more income but are taxed less, like investments. And this money grows without you even doing anything. It's money working for you.
Small Investment Success Story - Hospital Shares
It was July 2015 when my husband and I decided to invest in a new hospital that has a great potential. We were able to buy 1,000 shares at Php165/share, payable in 6 months, at 0% interest.
Good deal, yes. But if we grabbed the opportunity in 2014, we could have bought it at only Php100/share, payable in 12 months, at 0% interest at that time.
Lesson learned: Nothing is more expensive than a missed opportunity.
By December 2015, we were able to complete our payments. Come January 2016, we were notified that the price has gone up to Php250/share. Whoa! We were very pleased.
Then just this week, we were informed that price per share is now at Php400 -- and the hospital hasn't even started its operation yet. We cannot be happier!
Our Php165,000 then is now Php400,000 in a matter of 4 months and without us doing anything.
I am sharing this story with you not to brag, but to let you know that anyone can invest. You may think that Php165,000 in 6 months is a lot of money. But this was the time when our bonuses come, and for some, quickly go. While everyone else did Christmas shopping here and there, my husband and I stick with our budget. And we successfully pulled it off! This is our first investment as a couple.
And for a start, you can invest in the TOP 10 Companies in the Philippine Stock Exchange with as little as P2,000 per month through our Select Equities Fund.
Investing is simple, but not easy, as it requires discipline to do it consistently. In the long run, you will realize that the little sacrifices you made will eventually pay off BIG TIME!
When it comes to planning your future, YESTERDAY is always the best time to invest. The next best time is TODAY.
P.S.
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If you need help with your financial plans and goals, or if you need some hand-holding in your investment journey, feel free to send me an email anytime at jssalandanan@gmail.com.
Be very blessed!
