Investing for the future

Between the most expensive SUV around and the cheapest condo, the choice should have been easy. Sadly, however, it is not always an easy choice for a lot of Filipinos. Many of them would rather choose to feed their fancy and ego than to invest in their future just so to get the approval and praise of their friends and the people around them. And thanks but no thanks to the media and advertising for spreading the culture of vanity and excess.

I can very well relate how misplaced the priorities of many Filipinos having relatives of my own who are Overseas Filipino Workers (OFWs).  And I’m certain that many of you see the same thing happening to your relatives and friends who slave their way to greener pastures if only to provide the best for their family. But that does not always happen for many OFWs.  Many ended up in debt or retired poor because their hard-earned money were unwisely spent on things to “show-off” than for addressing their needs in the future. Many have chosen to spend their money and enjoy the present than to think about the cost that comes with old age.

Let’s face it. We all get old. And as we get old, we do not only lose our vitality but we also lose our productivity. Old age is a reality that everyone must go through in life and we must be prepared for it financially. Many retire miserably because their pension (which everyone does not have in the Philippines) is not enough to cover their health needs. And so the burden must be assumed by the children. The thing is, you can never be too sure if your children will be there to fully assume the cost of your being sick. More often than not, the children will have to loan the family’s property in order to keep you alive.

Investing is one thing that most Filipinos don’t want to think about. And if they ever think about it, they are not serious enough to pursue it. Looking good is always the priority when they have the money and so they invest in fancy cars, gadgets and other luxuries that they do not actually need. We easily get so carried away with what’s “in” or what’s cool because we feel that we are more accepted or respected by our friends by the luxuries we have. Many of us are hungry for admiration and appreciation as if these luxuries are the only way to gratify our self-worth.

And so we insist on buying a good-looking car so we will be able to parade it on the neighborhood. While having a car is important, to spend on a car to seek the approval of your friends is the stupidest decision you’ve ever made with your hard-earned money more so if you loaned it from the bank. And if you think that cars are a good investment, you got it wrong. Vehicles depreciate on the average by 10-15 percent per year which means, your car gets cheaper every passing year. So if you think of buying a car, go for something more practical. Think of a car as your means to get you to point B than as a means to drive your point that you’re a rich dude. People may love you for your car, but it doesn’t change the fact that you’re paying big and working hard for it – so stop the ego-tripping and think smart.

If I had it my way, it’s better to invest in something that drives your way to a better life in the future. Old age may deprive us of a respectable life that we deserve. The reason being is when we become a burden to the family, we lose our self-esteem and think of ourselves as parasites. Many Filipinos do not enjoy their ripe age in life because they did not invest in health care, insurance or in properties that should have given them passive and sustainable income.

Filipinos need to change their mindsets. The social pressure is enormous and very influential that we fall into the trap of buying luxuries that have no bearing or contribution to our future life. We need to think about investing than spending on these present luxuries which are all fleeting and stressful to our need for social identity.  Our social identity and self worth does not come from these things. They come from our positive outlook, our philosophies and values that contribute to social change and the upliftment of others – that’s the best favor that you can give to yourself and to society as well.  

 Investing may deprive you of your short term longings but the potential return it gives for the long term may even outlive you. Forthwith, think about insurance, think about real estate, think about running a business.

Send e-mails to [email protected]