Friday, September 23, 2016

THIRD CURE TO A LEAN PURSE: MAKE THY GOLD MULTIPLY

 
“Put each coin to laboring that it may reproduce its kind even as the flocks of the field and help bring thee income, a stream of wealth that shall flow constantly into thy purse.”
 
                When you disciplined yourself in saving one-tenth of your salary and have controlled your expenditures to protect your growing treasure, next we will consider means to put your treasure to labor and to increase. Gold in a purse is gratifying to own and satisfy a miserly soul but earns nothing. The gold we may retain from our earnings is but a start. The earnings it will shall build our fortunes.
 
                Put your gold in a profitable investment. A man’s wealth is not in the coins he carries in his purse; it is the income he built, the golden stream that continually flow into his purse and keep it always bulging.
 
                After having an “emergency fund” or savings, one should consider the principle of investing. Money put on a bank will not earn you as much as money put on investments vehicle. There is a thing called “inflation”, it is a general increase in prices and fall in the purchasing value of money. As an example, if you buy a chicken joy meal for P100 today, chances are, the same meal would cost much more than that in 2020. In order to beat inflation, we should capitalize on investments that would generate higher income than the inflation rate.
 
I had my firsthand experience in investing in 2007 by purchasing a real estate in a subdivision lot 30 minutes from our hometown. It was near SM City Pampanga and Robinsons Pampanga. In 2010, we opened our Computer shop business in partnership of my sister and brother. Also in 2010, I invested in Real Estate Condominium and in 2011 in Philippine Stock market.
 
                I was not successful in all the investment I entered into. There are loop holes that I didn’t study well so some of them are not fruitful. I may have lost some money, but that challenge me to be more cautious where I put my hard-earned money. I will discuss this more in the next cure.
 
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