Name:
Sherlyn C. Tibay Date:
November 17, 2022
Cultivate and Grow
Your Assets: Escaping Financial Rat Race
What are your
assets? Business-minded people may answer, “money-generating activities.” At
some point, it is correct. But this idea is only the tip of the iceberg. Every
individual, rich or poor, educated or not, is equally bestowed with the first
two most significant assets to become financially stable and to escape the
financial Rat Race. The first two principal assets are mind and time. Everybody
can think, endowed with the brain to generate thoughts and help oneself grow.
Furthermore,
everyone has given the same amount of time each day— 24 hours a day. If
properly cultivated, these two assets, mind and time, will contribute
significantly to the growth of the third asset— money. Here are a few steps to
escape financial troubles to develop your assets, mind, time, and money.
If you haven’t
experienced joining any race at school, for sure, in financial matters, you did
– that is Rat Race. A rat race is a weekly routine to find money— no work, no
money. To escape the Rat Race is to farm your assets. Money-making is like
farming: you plant, care for, or water and let it grow. As we go along the
process, I want you to remember these essential concepts:
Your brain is the field.
Financial education is the seed.
Time investment is the water.
Money is the fruit.
The first step,
plant the seeds of financial literacy. Earn yet not cash but literacy. Instill
in your mind the vitality of financial education: 1) knowing how money works;
2) what money can work; 3) and how money can work for you. The second step is
to care for the seed and invest time in growing it. Invest an ample amount of
time in activities that will contribute to growing your seed. In real-life
farming, crop enthusiasts spend plenty of time looking at or creating methods
and fertilizers for their plants. Similarly, look for or create opportunities
that potentially or promisingly invite money to your pocket. The third step is
to handle the fruit wisely but not get scared to take risks.
Let’s talk more
about your fruit. What to do with the money? As much as possible, don’t just
give away your fruit to nonsensical pleasures: doodads, unplanned trips,
hangouts, vices, etc. The fourth step, proper management, is distinguishing
between wants and needs and understanding liabilities and financial assets. In
simple ideas, liabilities are any variable that takes away money from your
income box.
In contrast, financial assets are
any variable that puts cash in your income box. Ideally, plant the seeds of
that fruit to multiply the cash flow in your income box: invest and trade. The
fifth step, keep expenses low; both wants and needs are liabilities but always
prioritize your needs over your wants to reduce liabilities. The sixth step,
keep growing by staying up to the demand and trend; be open to any opportunity
or new business idea. Don’t just stay outdated and loyal to your old business
methods; venture into new doors to keep up with age.
Financial education is a pivotal
course of study but is overlooked in school. The school promotes the seed of
academic intellect. Consequently, graduates got licensed and felt productive in
their professions but failed to manage financial matters and were still Rat Racing.
You want to grow mango, but you planted avocado— seed choice plays a leading
role. School teaches how to find money; wouldn’t it be better to create money?
School emphasizes that we work for money; why not let money work for us
instead? A strong foundation is an important principle. Hence, the first step
is planting the seed of financial literacy. If you have implanted the healthy
seed and invested a productive time with it, you will surely grow a solid and
sturdy tree that will never run out of fruits if correctly and consistently
tended. Likewise, establish a strong financial education to end the Rat Race
scenario and be financially stable throughout your life.
