THE LAWS ON BUILDING PERSONAL WEALTH

It’s better to look ahead and prepare, than to look back and despair


When my grand-father, the late Go Ling Guan (Leon Go-my namesake)
migrated from china in the mid-1920’s, he was like most Chinese migrants-penniless. However unlike most of his countrymen, he was western educated, he had a high school education from a school run by Spanish monks (not Jesuits-in China)so he could speak fluent English, Spanish, and a little French, besides Chinese(Mandarin and Fukienese) of course. My Grandfather worked odd jobs, to survive, until he was able to save enough to help his younger brother, Go Sio Hong (Dionisio Go) follow him. Unlike most Chinese, my Grandfather was not much of an entrepreneur, but because of his High School Education (which was a big deal at that time) it was easy for my Grandfather to find employment, eventually he was hired by a fellow Chinese (and distant relative)-the late Carlos A. Gothong (of Gothong Lines) who was then building a ferry company.

On the other hand, his younger brother who was not western educated could only speak Chinese, so getting employed was out of the question, as most of the big business at that time was not yet owned by the Chinese, so he ended putting up his own business, (with the help of my Grandfather) a fishing supply store. And as a familiar twist to a story goes, my grandfather (supposedly the western educated one) ended up being an employee all his life-he rose to become Jefe de Viaje (the equivalent of a branch manager today) of Gothong Lines, before he retired, while his younger brother’s fishing supply store, has grown up today to become a multi-million business, with interests in Marine Engines/supplies, fishing supplies, hardware and construction, gasoline retail and shipping.

My point here is that, while my Grandfather was never an entrepreneur nor a businessman, he had a trait common among the Chinese-he had the discipline to save. Such that, he was able to provide for his family a comfortable life, until it was rudely interrupted by the Japanese occupation, but whose life wasn’t? and even then-after the war he was able to send my father (the eldest of 9 siblings) to Med-School (UP and Southwestern Univ.) and his sister (the 2nd child) to business school, (USC) where she became a CPA, true to tradition , both of them then pitched-in to help the rest of their siblings, finish school. It was savings that helped them succeed. I can never over-emphasize the value of savings, when it comes to building financial wealth-it is the most important, and yet underrated thing. Read any rags to riches success stories, especially those concerning tai-pans, they will always tell you the usuall, hard work and perseverance (sipag at tiyaga) what they always omit to say is that the most common trait among successfully wealthy people is their discipline (some say-iron will) to save, and sacrifice. This is not to belittle the virtues of hard work, but look around you, there lots and lots of people who have been working their asses off, but they still can’t seem to make ends meet. It’s savings... below are some of my compilations of different articles of strategies that work.

1.) Start early (Start right now!) It’s not how much you save, but how
early you start saving. Or investing

2.) Plan at least 5 to 10 years ahead,(see above) When she turned 21, Sharon Cuneta took financial control of money earned since her first record, “Mr. DJ,” was released several years earlier. By all accounts, the singer/actress has since managed her money well- spending less than what she earned, investing wisely her surplus funds, and planning a more than comfortable future for herself and for her daughter, KC Concepcion, that included regular trips abroad and schooling in the best possible schools. At any given point, she knows how much she is worth.
Today, Cuneta has two other daughters, both of pre-school age, which she has now included in her financial plans and (KC) Concepcion studied in Paris.

3.) Get College covered (refer to no.2) and please remember that tuition fee is only 30% of total college cost; the other 70% is for misc. fees.
If you’re still single and don’t have children refer to nos. 1 & 2

4.) Hedge against long-term disability. Get an accident and health insurance. Your money amassed should be enjoyed, and not used to pay for hospital bills.

5.) Get a life insurance policy. Your loved ones shouldn’t be financially
displaced in the event of your untimely death. Or you, in the event of a
disability

6.) Keep it simple something you can easily grasp and understand

7.) Keep your asset allocations current (i.e.: keep your accounting/auditing updated and make savings automatic)

8.) Live below your means (earn more-spend less)

9.) Never buy on credit yes it’s true, you don’t get interest when you use your plastic, but that’s what’s going to tempt you to buy more than you need in the first place.

10.) Don’t rely on your instincts; they’re probably wrong.
P.S. If they were right. We would have had lots of winners in that popular TV game show “Deal or No Deal”. - Nards

PS: Actually we can go much farther than savings, and that is investment. Too bad my grandfather never had that option. Come to think of it: Warren Buffet, one of the world’s richest man, and the greatest investor of all time, started investing when he was 14, in 1965 and he wished he started much younger.

References and Links

www.pinoysmartsaver.com
www.colaycofoundation.com
www.bestlifeonline.com
www.business.inquirer.net/money/personalfinance
http://www.accountingtips4you.com/
http://www.apersonalfinanceguide.com/