Pay Yourself First

A Sad Story of an OFW

She is Tita Ruby (not her real name). I met her in one of  my Financial Literacy Lectures abroad. She is a petite woman with a  humble heart at the age of 65.

"You know Norman..." She said politely. "My plan was to work here in this country for just a maximum of 5 years. My plan was to save money so I can send my kids to school and eventually retire and stay in the Philippines for good."

I am listening intently to what she was telling as she started her next sentence with a sigh. "But look at me now... I am still working in this country for 20 long years with no savings whatsoever."

She rest down her two elbows at the table and continue saying "For 20 years, I had only few opportunities to see my kids grow, I was not there during their graduations, I was not there when they are crying..." she sigh deeper and said" I missed so much about their lives and now that I am about to retire, I haven't save any sufficient amount so that I can live comfortably or even decently so I now question myself if it was all worth it..."

There is a Time of Abundance and Time of Famine

Many of us can relate to the story of Tita Ruby. We know very well that her story is most likely the story of many Overseas Filipino Workers Abroad. We can truly say that our OFWs are one of the modern day heroes of the Philippines because of the love and the sacrifice that they do so that they can bring their family out of poverty.

But sadly, many of our OFWs and also the Filipinos who are working here in the Philippines don't know what to do with their hard-earned money. That's why if the time comes for them to retire, many have to work again to sustain their lives and have money for their basic needs. 

While we have the capacity to earn, we should learn the disciple to save for ourselves. Before paying others like SM, Robinsons, Ayala, Meralco, PLDT, Globe, Smart and other rich companies, you should have the discipline and the habit of paying yourself first.

How Do I Pay Myself First?

In the story of Joseph the Dreamer, he translated the dream of the Pharaoh that there will be 7 years of abundance and 7 years of famine. So he advised all the people to save 1/5 of their harvest.

It is also the same with us, we all know that 1/5 of 100% is 20%. So it means that we should keep 20% of what we are earning now so that when emergencies (famine) like loss of job, sickness, accidents comes, you will be ready and you have resources to get you along until the time of abundance comes again.

We must also put God first in our lives and give Him our offering so we must also Tithe (this will be another full length topic). Our Tithe should be at least 10% of what we are earning. 

The savings formula of most people is like this "Income - Expenses = Savings". If this will be our formula, then it will be hard for us to save something for ourselves. 

Our formula should be like this "Income (100%) - Tithes (10%) - Savings (20%) - Expenses (70%)". If this will be our formula, then it is possible for you to save money for yourself that you can be used for emergencies and for retirement.

You Cannot Bring Your Wealth With You When You Die. So Why Dream To Be Rich?!

"Why do you like to be rich? When you die, you cannot bring your wealth with you anyway..."

This is a familiar phrase I hear from many people.

Yes they are partly correct, you really cannot bring your wealth with you if you are six feet below the ground.

But I strongly disagree with that phrase.

Here's why.

It was a perfect Friday afternoon as I visited my mom's new resting place in Holy Gardens Cemetery. The setting sun was painting the sky with beautiful colors as the light of the day slowly surrenders to the approaching evening.

From where I was standing, I can see the sun slowly kissing the waters of Laguna de bay as it bids farewell to another beautiful day.

After saying a prayer for my mom, I decided to spend a quite time and walk inside the cemetery.

 As I pass by the grave of the people who are lying there, I am pondering with the question I mentioned above.

Then a realization hit me.

It is true that we cannot bring our wealth with us when we die but I realized that If you want to be rich because deep inside your heart you want to help people, you need to feed your family, you want to donate to your community, you want to go on a mission, and you want to bless the world...

Then even if you cannot bring those wealth with you when you die, seek for it anyway. Pursue your dreams anyhow. 

Why?

Because YOU CAN LEAVE IT TO OTHERS. Because YOU CAN GIVE IT AWAY TO THE PEOPLE WHO NEED IT THE MOST.

I think it is selfish to think that if we cant bring our wealth with us, we will not even try to be wealthy. I personally believe that this world needs more Christ-like millionaires so that the Earth would be a better place to live in. 

This world needs true millionaires not just in pockets but in the hearts.

Truly, money is NOT the most important thing in the world but money affects everything that is important to us- our family, our organization, the people dear to us, our community.

Let us always remember that greed and generosity comes from the same source- our hearts. Money is just an instrument so you can show what's inside yours.

Be blessed everyone!