Financial Freedom means not having to work anymore in order to live, because your money will be working harder than you do. It will pay your bills, your food and even your play. The earlier you get there, the sooner you can retire.
Almost everyone wants to be financially free, but very few get there. On the average, for Filipinos when SSS conducted a survey last 2005, on how many Filipinos can retire without anyone supporting them, it’s only 2 out of 100. When BPI conducted the same survey the result is only 1 out of 100 Filipinos. Why is that bad?
In the process of becoming financially free, there are several stumbling blocks along the way that you need to overcome.
“To achieve what 1% of the world’s population have (Financial Freedom), you must be willing to do what only 1% dare to do. Hard work and perseverance of highest order.”
― Manoj Arora, From the Rat Race to Financial Freedom
The FIRST HURDLE from becoming financially free could be YOU.
“Yes YOU!” How could you be YOUR OWN stumbling block?
- Lack of education – Unfortunately, your Salary does not have a Manual like those appliances you bought. There is no operation manual on how to spend it, so you end up, not budgeting, spending more than you can afford and not investing as soon as you can. The soonest you can educate yourself, the better you will be in the position to do something about it.
“You are only as rich as your willpower.”
― Wayne Chirisa
- With Education but Lacks Action – you may know what to do now and how to do it, but you have the fear of taking the leap.
“Educating oneself without action is meaningless.”
The SECOND HURDLE may be your PARENTS OR CLOSE RELATIVES
Not all parents or close relatives are created equal, some become your ally and support while others become hurdles of your dream to become financially free.
Being a financial consultant for several years, I was able to observed that, they are big factors in financial decisions of a Filipino. For some part, they can be the “kontras” or “negas” as we call them.
You also have to understand where they are coming from (parents or close relatives), in their time people are not that open to such things like, insurance, or investing for retirement (or they have not even heard of it then). Most people that are not adept to change often oppose them. But if you are already in your right age, I believe you have been given a freedom to decide on what is best for you no matter what they say. Combined with education and freedom of choice you can never go wrong, even if you have to go against the flow.
Matthew B. Brock, CFP says “Generation Y is constantly being told that there is a right way to plan financially. This advice often comes from an older generation whose financial status doesn’t show that their way is the right way.”
You can still ask for their advice, weigh it if it is still applicable in our times today, but ultimately, you decide for your own good with the help of financial experts.
The THIRD HURDLE could be YOUR SPOUSE
What she doesn’t know will hurt both of you (and vice versa). If you are investing in educating yourself financially, but if your spouse is still ignorant she/he can put both of you down. Of course in every financial decision, it is best to be honest with your spouse. But if you wanted to act, but she didn’t, that affects your whole family. If you are asking advice from financial experts, it is best if you talk to the experts with both of you present there. So that both of you will be educated and be able to decide the best for your family.
Let me share a true story: (related by a friend)
Sheena and Alfred are married with 4 children. Alfred works as a seaman, Sheena takes care of their kids. One day, he met Debbie (a financial expert). As a financial expert Debbie suggested he gets life insurance (to be able to establish a good financial foundation first before they even invest) since he is the only breadwinner and he got lots of dependents. Alfred told Sheena, but Sheena declines. She wanted more savings so that they could go to Boracay as a vacation and besides, she reasoned that Alfred has life insurance coverage as a seaman. She views the premium on the life insurance as an added expense.
The unexpected happens, while Alfred is in the Philippines for a vacation, he met a tragic car accident that killed him. The life insurance policy as a seaman is not applicable. Sheena has to work now to support his 4 children. In the end, the wife’s wrong decision, took them both away from their children. Alfred, dying without leaving anything to their children and Sheena as their mother, since she has to work night and day, to support her kids and needed to leave their children to relatives.
Tragic story, but this happens all the time.
Got this from Pinterests:
“Wives sometimes object to Life Insurance…
Widows Never Do!”
The Fourth Hurdle is the Norm or Society
“One of the biggest hurdles is overcoming societal pressures,” says Matthew B. Brock, CFP
Today, buying the latest gadget, travelling to different places, having luxurious celebrations are the norm. When you see your friends having these, you also want them for yourselves and to be able to post it in social media is the defying moment.
Lifestyle upgrade is not bad unto itself, but before thinking of upgrading your lifestyle make sure you already have the proper financial foundation laid out for you. Make sure you already have: provided for the basic needs of your family, gotten yourself out of debt, have already saved up for emergencies, insured your income with a life insurance, and invested for your retirement and other financial goals.
“If you keep needing what you want, there will come a time you will be wanting what you need.” – Ricky So, RFP
There you go. If you find yourself in a hurdle right now, think, educate the person and still act on what is best for you. Always remember, your financial freedom is a personal choice and not other people’s choice.
Your career has a shelf life, it will have to end someday. In the future, when you retire, whatever you plant now, you will be able to reap. If you were not able to plan ahead when you still have something to plant, you cannot blame others of your indecision. You cannot say, I was not able to save and invest for my future because my parents or spouse told me not to. Can you imagine how lame excuse that would be?
Before I end, I will leave you with something to think about:
“To be able to become Financially free, Education is the best defense and Action is the best offense.” – Dr. Pinky Intal
Healing your Financial Hurdles,
Want to ask a financial expert? Contact me here.
Read more:
- How Financially Smart are You? What is Your Financial I.Q. Take the test and Find Out!
- How much should you be saving for Retirement? Do you have what it takes to retire comfortably?
- Saving Millions in Bank, How Safe it is?
- SSS Retirement Benefits, Updated 2014 Is it enough for your Retirement Needs? Find Out now!
Latest posts by Pinky De Leon-Intal, MD, RFC (see all)
- Say Goodbye to Chronic Lifestyle Diseases (Hypertension, Diabetes, Cancer, Gout, etc.) with Right Food and Right Water - 23 May, 2023
- Embracing Superpowers: A Mom’s Journey as a Doctor, Professor, and Financial Consultant - 19 May, 2023
- Celebrating the Power of Women: Honored by Philippine Daily Inquirer - 17 May, 2023
I’d like to learn more on Financial Management
Hi Jun, text me here 09258895433.
i emailed you. 🙂
doc pinky i find your ideas very helpful i wanna learn more i will call you what is the best time?
i will see you soon. 🙂