Bridging finances

Istarted as a management consultant-trainer fresh out of college (well, I wasn’t really “fresh,” as college took so long!). Despite having an Architectural degree (U.P. Diliman), I chose to continue in the field of business education having had the privilege of running the largest global association of youth committed to international understanding and cooperation through management development (AIESEC International). AIESEC was my extra-curricular, but eventually, it took the main seat. It dawned on me that one of my key influencers in choosing my college course was the desire to follow my dad’s footsteps (who finished Civil Engineering in the same school). I don’t regret doing that. I love my dad and I take pride in sharing part of what he mastered all throughout his business life. Besides, I developed early on what is only now being encouraged in other fields, particularly in business, but realistically, in all of life: the ability to use both sides of the brain, the Systematic Left, and the Creative Right. (Roger Sperry, the Split-Brain Theory). In Architecture, you need aesthetics (right brain) to draw people to your buildings, but you also need the structure (left brain) to make sure, for the sake of your guests, that your building does not cave in.

After being interviewed by broadcaster Korina Sanchez about my experience in AIESEC International, I was offered a part-time job as co-host in her morning program Magandang Umaga Po. It was my first assignment in the field of news and public affairs.

So, a new management consultant and trainer after a successful stint at a global business organization, and a co-hosting job with topnotch broadcaster Korina Sanchez? Wonderful learning opportunities, amazing networking possibilities, fantastic earning potential!

But both “part-time”, “per appearance”, “on contract.”

They paid up when I showed up. And I showed up only when they signed up. Which wasn’t everyday.

Then again, when they signed me up, it wasn’t always a one-time program; there were the occasional “series” of sessions, and even better, long term brand endorsements!

Oh, the highs, and lows of variable income.

How is your heart?

I’ve learned through the years that work choice shouldn’t be so much about what is “out there”, as it is what “lies inside” (to “lie,” meaning to “rest,” not the one that means to “deceive!”). As one motivational speaker puts it: “Success is an Inside Job.”

And so being true to one’s inner self, one’s nature by design (not “nurture or resign!”) is a key to work decision, lifestyle selection, and yes, even partner option!

While I am generally an accommodating and welcoming person, I also have a strong tendency to pioneer and take risks (ask my wife).  Hence, my early option to go for career and business decisions that were new and innovative, first and out-of-norm, and downright risky!

And certainly not for one who wants a sure source, steady income, and consistent inflow to provide for one’s needs, and wants. Generally, it is best to make the riskiest decisions at the starting stage of one’s career. Occasionally, it will be helpful to do so mid- stream in one’s professional life. Less and less, if at all, one must make “untested” almost “speculative” decisions in the latter (“retirable”) stage of one’s life.

But it isn’t just about age; it’s also about one’s personality. For there are among us those who are, by nature, generally conservative; others, consistently moderate, and others, extremely risky!

As I look back now, 25 years since I started the “negosyo” mindset (as distinct from the “trabaho” approach), I can say with confidence that at least 75 percent of my income has come from “variable” sources, with the balance from “fixed”, or “regular” work. (The ratio is even bigger for my wife!)

This led to a more creative, exciting, often faith-stretching means of deciding on my next venture, and sourcing needed funds. Without a regular paycheck to cover for anticipated expenses, I relied on the variable inflows (and over time, you can see a trend to arrive at a “regular” or “anticipated variable income).  I think, consequently, the “negosyo approach” also increased my need for more “sudden” funding requirements for growth and operational activities.

I remember the day my father gave me my first credit card, an “extension” card for my personal and professional use. I felt I had been given wings! I was extremely humbled and grateful for it meant an nth time he put his name, and bank account, at “risk” for me! (“Like father, soon son!” hahaha)

A privilege and an honor, not a “right” nor an “entitlement.” I need to remind myself of this principle, of this “way of thinking” as I continue using my “all-powerful funding accessory.”

Indeed, it’s been a blessing: immediate access for emergency needs, a means to secure an appliance or a business tool — paid over time at no interest — that I had no means of acquiring in, literally, one “sweep,” and immediate cash when financial projections were either ill-prepared or simply unmet due to a change in assumptions.

Credit cards provide easy on the pocket payment solutions. It affords you, the holder, with the luxury of having flexible payment terms for high-value purchases with installment programs. You are given the option to choose the most convenient payment terms wherever and whenever you need it, (whether at 0 percent interest or low fixed monthly add-on rates). This is available nationwide in any retail partner of your card so they can help you on anything you need to bridge your finances for pre-planned spend, emergencies and even for non-cardable expenses. 

Whether it’s a credit card or any other resource “empowering tool,” the basic principle remain the same: it’s just a tool, and ultimately, the quality of its output depends on one who wields it.

A quick review of some imperatives may help us current, and also future, card or “tool” holders

What can’t be measured, is almost always, left undone. Prepare a budget, anticipating income and prioritizing expenses (including investments, savings and on-time card payments!) Determine what you need to borrow that you can pay — stick to the amount as you access your tool - and settle the amount on time, as committed.

When you are able, be willing to be pay more than the minimum required to stay above the potential loss of accumulated interest

Earn more than you spend so the balance that you wisely invest allows you to make money work for you and not the other way around!

Honor your word. The three finance terms “Principal plus Interest, “Due Dates” and “Credit Score” - re”worded” - mean the same three everyday things: “Commitment to Pay,” “Promised Dates” and “Corresponding Reputation.”

The greater the flexibility in the exercise on one’s privileges, the more critical the need for accountability. Freedom without responsibility? The undisciplined child, and eventually, the wayward adult!

From Day 1 of our column, Maricel and I disclosed that we are the first students of what we preach. Among trainers, we joke about one privilege we consistently enjoy as speakers: “The regular opportunity (as we hear ourselves) to remember the things we ourselves have to implement in our own lives!”

Works in progress we all are. It can be tedious, and since it never ends, can be exhausting at some point. But it is worth it. Like an encouraging financial statement where net income is still overwhelmingly positive, our net earning and learning is still worth all the investment, and the risks, through the years. Truly, our transformation as financial stewards is a work we are privileged to enjoy, and a progress we are grateful to experience.

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BPI credit cards help bridge your finances from paycheck to paycheck. You can also avail of flexible payment terms for high-value spend with the Special Installment Plan.  The points you earn with your card give you a number of rewards which become more exciting as your points go higher. Go to bpicards.com/Sip or bpicards.com/Calculators for more information. Email us at wealthness@philstar.com.ph.