Stop Loading On Cheap Junk

Let me share with you a paragraph that struck me while reading Retire Young, Retire Rich by Robert Kiyosaki.

"Rich dad said people try to become rich by being cheap, being frugal, not spending money, living below their means, and scrimping. Most people do not become financially strong with that kind of behavior. A person needs to spend more if they want to become rich, but they must know how to spend and what to spend on in order to become rich. As my rich dad said, "There are good expenses and bad expenses." And most of us know that there is good food and bad food. Just as a person tries to lose weight by starving, a person who tries to get rich by being cheap only gets financially weaker, and then suddenly they too go on a binge. And as a binge eater will load up on junk food, the binge spender loads up on cheap junk."

It Is Smart to be Thrifty, But You Don't Want to be Cheap

Two weeks ago, I was having a conversation with a friend who wants to start investing in the stock market. He was asking me a lot of questions via Messenger so I thought that maybe he would prefer that we talk personally. Initially, he agreed. But when I jokingly asked where he will treat me for coffee, he changed his mind. LOL. (Though he knows that we can always do Dutch!) 

During one conference I attended, on the other hand, our stock market mentor Mr. Edward Lee shared that there was a time when he saw an old client while having dinner at an expensive restaurant. Before leaving, Mr. Lee paid for the old client's bill without telling him. The client appreciated the gesture. Unexpectedly, Mr. Lee received a call from him for a transaction that brought millions to his business. Paying for that dinner, no matter how much it actually cost, was definitely worth it. 

I think the key to wise spending is simple. Know when to be frugal, and know when to splurge.

If You Bought an Item You Don't Really Need at 50% OFF, is that Savings or an Expense?

Stop being a binge spender and loading up on cheap junk. Instead of buying too many clothes, or shoes, or bags every time there is a SALE that will only fill up your closet (wherein you would eventually need a bigger closet), why not shop for investments that are on sale to fill up your portfolio instead?

You can start by investing in the stock market. I challenge you to start filling your stock market portfolio with BIG companies. 

Take advantage of the election season and invest in the local equities.

Or take your investments to the next level through global investing -- YES! Even without converting your peso to dollars. The fund will do that for you!

It would be nice to own even a tiny part of BLUE CHIP companies, especially those which pay dividends!

If you want to learn how to invest directly in the stock market, and have the time to do so, click here.

Otherwise, you may invest through your favorite financial institution, and let the experts do what they do best -- both for your local and global investments.

Insular Life, the first and largest Filipino-owned insurance company, recently launched its GLOBAL MULTI ASSET INCOME PAYING FUND which allows you to buy shares of dividend paying companies across the United States, Europe, United Kingdom, Asia Pacific and the Emerging Markets; and a diversified portfolio, too, including equities, REITs, Fixed Income Fund, among others.

With this fund, you grow your money through capital appreciation and dividends which are given as monthly payouts deposited directly to your enrolled bank account.


I believe that the key to financial freedom is knowing where to spend your money on. Stop buying liabilities (which you thought were assets) and start buying real assets. Simply put, although many are still confused, an asset puts money into your pocket. A liability takes money out of your pocket. And again, financial literacy is very important.

Happy investing!



P.S.

Finally decided to start investing? Interested with InLife's Global Multi Asset Income Paying Fund? Email me at financialplanningforpinoys@gmail.com.