Does Money Solve Our Money Problems?

Ever wonder why money problems don't just leave and fade away even if we earn higher and work harder. There's just enough bills to take money away. And this cycle is really frustrating. Been in the same boat? Or still on that boat?

Well it only tells us one thing... Money doesn't solve money problems it just give us more power to spend.

This is what happens to almost all of us:

1. Graduate from college
2. Get a job
3. Enjoy independence
4. Get married
5. Increase income with 2 incomes combined - bliss!
6. Buy home and car
7. Children start to come
8. Promotion - higher income
9. Send children to school
10. Go back to school for masteral then phd for higher income
11. Promotion
12. Get a part-time job
13. Spend more
14. Try to save for retirement
15. Retire

But still... money is not enough. Why?

Capacity to earn and spend

I've observed that most Filipinos after graduating and getting a job and having the capacity to earn for the first time, they tend to invest a lot on improving themselves. They buy nice clothes, gadgets, car, expensive vacations, socializing and just getting by until the next pay day come. And there's the typical "help little sis or bro to graduate". This cycle goes on and on until one realizes that it is a rat race.

Debts are increasing

With increasing income, things become more desirable too. We tend to get bigger and nicer homes, chic cars, gadgets, expensive vacations, etc. but still have the basic bills to pay plus the children to send to school if you are married.

Status

When you are promoted, get a higher post in your company or in your community, you have to maintain the glamour that goes with it. You gain friends of the same status with a higher type of lifestyle. Since you belong there, you just can't let yourself behind your friends. So to keep yourself in pace with your community, you adopt to their lifestyle. Even if the things you use and the activities you do aren't really on your priority.

Saving and investing becomes difficult

With so much to maintain in our own life like our lifestyle, sending the kids to good schools if married, and paying bills. Saving and investing went down the list of our priorities because we are just earning to get by.

Thus, more money doesn't really solve money problems. It is on how we spend. To reach financial freedom and save a hefty retirement requires a lot of sacrifice and focus. We need to establish first a set of strong income streams so we can enjoy the good things in life and to avoid incurring more debts.

All these come to our realization in a hard way. Good thing I've realized it when I'm still single and in my twenties coz there is still a lot of time to catch up. After all, i didn't regret everything I've done to experience life. Everything is worth it though. Now, it's time to focus on achieving my financial goal for the length of my life :)

Limited Capital For A New Business?

This is where most entrepreneur wanna bes get frustrated when they finally have their plans for a business but finding it hard to find financing. I know this because I've been through this. I wanted to be an entrepreneur to maximize my earning power because I'm just an employee earning fixed income per month and I find this cycle really frustrating. I can see that we are taxed before we can spend but businesses spend first before being taxed. Worst is the taxes on their goods and services are passed on to their customers and so in short the wage earners are the only ones who pay the taxes. Tsk tsk

And so I went on finding what kind of business I'm going to undertake. I've raked all through my possible sources of capital and heck I just got more frustrated. I only earn a fixed salary just enough for needs and some wants, no friends and family who can lend me money for business and it's hard to borrow from a bank. What this tells me is that, I only have my time, my talent and skills as my resources. So I started thinking hard from there.

Skills

Searching and observing around we found a type of business that is in line with our skills. My sis and I and some of our friends have developed a skill on events organizing. All we have to invest is a small amount to set up our office and we're good to go. We we're able to run that business and have really organized big events and gained lots of friends. Though that was a failed business venture because of poor marketing but I learned that it doesn't really take money to start a business. Just a good idea ;)

Interest

This one is really nice where you will build your business on the things that you like. As for me, I really love touring and traveling as well as my sis. So together with a friend we are now starting to operate on our tour guiding services in the Island Garden City of Samal. Well, this doesn't cost us much. It only cost us our experience in touring the island and some favor from a friend who build our website for us (www.samaladventuretour.com) and in return give him commission if we ever get a customer. That's just it, not much of a pressure to begin our business :)

Profession

This one doesn't also cost much. All you have to do is to invite some friends with the same profession, set up an office and acquire business permit then you're good to go. Just be sure you have enough connections who trust you either to hire you or for referrals.

Time and Intellect

Some business ideas just require plenty of time, some knowledge and a very minimal money investment. One of these is becoming an infopreneur where you build your site which only cost you hosting and domain name which is really not much. And maybe some help in building your website. With correct efforts on internet marketing, passive income will soon arrive.

Talent

This one are just for the gifted (sorry hehe) though may be done by the average but it's harder to compete. This is where writers, artists, inventors and scientists who have put in their extraordinary talents to create a masterpiece that will bring them royalties even after they die. This is the kind of income that is really very desirable. Puts you in peace with your retirement safe as money will flow even if you don't work at all.

Friends and mentors

Friends can help especially if they're also in business. Network is very important. Though finding a mentor to guide you all the way is very difficult because they are really busy people and their time is very expensive you can hardly find a way to their precious time. But I've realized that having a mentor is very important so I got to find one for me :)

Financial Intelligence

This is the king of all. Financial savvy will truly bring you far in business and investments. This is because, sophisticated entrepreneurs and investors have manage to start businesses with less or no money investments. They have great understanding of how money works. They understand about money, timing, interest, risk, laws, etc. But this will take so much time and experience and a great mentor to increase financial intelligence.

All in all, I've discovered, that it isn't how much money you can put in a business venture but it is your financial intelligence and strategy that will bring it to start and to succeed.