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Are You Broke?
You are broke if you worry where to get money to pay for this month’s rental for the condo or apartment.
You are broke if:
- You get a cash advance from your credit card to pay your utilities
- Your retirement pay is not enough to pay off your housing and car loans
- You can’t make a transaction using your card. Maxed out na!
- You regularly ask your parents for a regular monthly allowance.
- You used to have savings, but it is ubos na
- You “pawn” your ATM card one week before payday.
Your parents are not kidding when they said life was a whole lot simpler then.
Sometimes, I can relate.
Little things lang naman, like when I need pansahog for tinola, I just go to our backyard and get some sayote and sayote leaves (they grow like crazy in Baguio).
I was kuntento na with just reading a book.
Now, today’s youth would like to read the book, see the movie, purchase the iPad app, and get the Xbox 360 Kinect game of that movie!
Today’s younger generation is obsessed with the C’s and the T’s!
Great career, credit card, condominium, cash, credit card, connectivity, travel, trips.
My parents’ generation used to go to the bank and deposit their money when they receive bonuses.
My dad used to be on the lookout for stable banks with high interest rates.
In fact, before he retired, he deposited P500,000.00 at PNB under a Double Your Money After Five Years Special Savings Account and ended up doubling it after five years.
Today’s young employees are blessed, but still ask themselves are you broke?
They get quarterly bonuses and a lot of fringe benefits which they withdraw at the mall’s ATM machine and spend the money like crazy on fab things like that fifth Bluetooth speaker (and it has to be the original Beats) and that designer bag and that bangin’ new coat for their daily #ootd!)
I think mine is (because I have to factor in my children’s education, needs like food, clothing shelter)!
I think the younger generation in the BPO industry makes a lotof money. I figured they make roughly P300,000.00 a year, with free HMO coverage, rice and transportation allowance, and night differential pay.
Usually, though, they splurge on the latest iPhone and that Coron trip, plus they go to Singapore to catch the sale!
They have to get that condominium unit because it is so near their place of work.<
I know a friend who makes a living out of giving loans to the employees of a certain BPO company.
Some employees have practically zero balance in their payroll because they have all kinds of loans through payroll deductions.
Their take home pay cannot take them home anymore…(although they do have that fab car, wala nga lang pambili ng gasoline)
Obviously, the problem is not how low the pay is.
It is how high the expenses are because of the employees’ lifestyle
Most often, young employees are pressured to spend the money they earn.
Why? Because it gives them power.
I used to be like this. I figured I don’t even need my dad’s money anymore.
I am powerful!
The problem begins when they begin to spend beyond their means – for stuff they want, but don’t need.
Why did they get into this situation?
The Youth Do Not Learn Financial Literacy In School
I studied Accounting, and perfectly know what constitutes assets, liabilities and capital, but I was financially illiterate.
Money for me was just something to spend. I would get more the next payday anyway.
I have no understanding of what is money and how I can make it work for me.
The Need to Pay Oneself
Of course, you have been working hard, so hard in fact that those bags reside permanently under your eyes now, that you owe that latest
iPhone (although you already have that previous version)to yourself.
Why don’t you start paying yourself by slowly building up your emergency fund then finally investing instead?
Equating Money With Love
Some shower their family with material gifts for very possible occasion.
I used to buy my then three-year old boy an original Matchbox car or Marvel Comics Super Heroes Action Figures everyday!
Seriously. I was very busy and I thought I was making up for time lost with him by getting him a toy every day.
Of course, he still preferred to play with me rather than with his new toys.
Always Willing to Lend Money
Many employees cannot say no to friends or relatives in need. They cannot even refuse a friend offering something which they already have or don’t like.
Try saying no, if you want to keep the money you work so hard for.
Failure to Understand the Credit Card
Credit cards give young employees the power to spend.
What they don’t understand is that they are debts.
Before swiping your card, think if you can pay it soon.
If you are in deep credit card debt, call your credit card company to negotiate for an easier way to pay your debt.
You can be paying as much as 33 per cent on interest rates a year!
The rich may be big spenders, but they are also big earners and investors. The fabulous and broke are simply big spenders.