Making it Count
Jul 31
I had a good conversation with my good friend Randell Tiongson while we were in Bagiuo as speakers for the Go Negosyo Teen University event. We talked about how to plan life in terms of milestones and finances. One concept we discussed was the importance of your “young professional” stage. You put in effort and time and you rake in a good amount of active income. What’s critical here is that you should make all of that count. Let me expound after the break.
Why you should make it count
The answer to the question is fairly obvious. In your “yuppie” stage, you can afford to sacrifice your health, time, and effort to rake in good active income. Your best performing and revenue generating asset is yourself. This can be in the form of being an employee or managing your own business. Once you get older, you’ll incur more unavoidable expenses. Here’s a quick rundown:
- Your parents kick you out of the house so you have to pay rent and utilities on your own.
- You decide to buy a car
- You get into a relationship and start dating/eating out a lot
- You get married
- You have children (expense bonanza here)
- etc.
As you grow old, you can’t really afford it anymore to sacrifice the stuff I mentioned earlier.
How to make it count
Let me ask you a question. How much savings do you have in the bank? Is it good enough that if you were to quit your job today, you’d be able to live off it for the next few months? Or is it non-existent? Maybe you’re just living life paycheck to paycheck? Here’s a brutal reality check guys. If you’re just above broke, then you’re in trouble.
You have to make that time in your life count. You have to raise savings so that you can invest in passive income instruments in the future. I don’t really buy the crap of “enjoying the fruits of your labor”. Yes, you can enjoy it, but not right away. Blowing your entire salary on a new phone or gadget won’t get you anywhere.
Make all the hard work and time mean something for you in the future. If it won’t have a lasting effect on your life, then you’re probably just wasting your time.
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Cool!
Amen!