6. Work towards your Dreams –Having a job is great, it gives you a paycheck and trains you to have good work ethics and makes you experience the ‘working’ environment–’experience’ is the operative word here, you can’t work forever!

Instead of thinking of climbing that career ladder, you and I know that you’ll never get higher than the owner.

So, while you’re still young learn about business and investing! Make money work for you, instead of working for money!

A strong business oriented mind, is the first step towards you’re dreams!

Instead of thinking of material things, think about things that would put money in the bank.

And live off from the excess of that.

Ones you’re money input outweighs you’re spending output, then you’ve done it! –repeat and maintain!

It’s not about being rich, it’s about creating jobs and building a better economy!

And oh, after you’ve substantially made it in business or investing, give back to the community, to help others reach their dreams.

Think about it.

-Mike

thank God for this article. great job! you are so much better than Salve in terms of giving money advice. i look forward to reading more of your articles Karen!

save…

It is good to see this blog come alive again.

On #3, yes, continue using items/equipments as long as they continue to be useful. Also consider replacing them if the cost of repeated repairs outweighs the cost of getting a new one. The cost of high-tech items ( eg Iphone, laptops etc ) generally tends to go down over time. Chasing the latest hot item only serves one’s ego not one’s pocket.

On #4, same experience with shoes. After almost a year, a cheap pair is practically unusable. My expensive pair is still in good condition after six years. Or is it because we tend to be more cautious in using expensive pairs, simply because they are expensive, and so they last longer??

One simple moneysmart-healthsmart tip anyone can do: more fresh fruits and veggies in your diet! less processed meats and junk foods that will just blow up your budgets, waistlines and future hospital bills. Plus you’ll be supporting the livelihood of farmers giving you all that healthful stuff. simple, affordable but wholesome foods for long life

Great Post! Thanks for the information.

I really learned a lot reading your articles. thank you! i’ll put a link to this blog from my blog.thank you

Is Karen going to replace Salve?

money is an instrument that you can earn by using your physical bodies inherent capabilities. at times your body is called a money making machine. a reason why you have to pratect your body from viruses and bacterias and others that might inflict harm to your body

having money as an instrument you can use it to buy goods and services that you need and like.

you can earn money by selling your goods and sevices

on how you manage your money will show the difference between a beggar and a vendor.

but always remember that having lots of money or non of it does not make your soul poor or rich. it is on how you use the money that will define the difference.

the economy of the spirit gets the priority

Great insight. I’m sure your parents are proud of you.

taking lesson 4 invest in….like buying shoes

the action invest as i understand that there will always be a return in the form of profits

the example presented is clearly and is clarified as pure expence. there is no return of profit and in due time every amount will be consumed. the product is consummable items.

buy the cheap shoes and invest the rest ot the money to earn more money to be able to buy a better shoes and still have your money continously growing in your livelihood endeavors.

money does not grow on trees….yes literally speaking.

in reality theres lot of money on trees. a sideline observation. one of the main reason of the drying of water shed is the loggers illegal cutting of trees. the number of hectarage of our forest is fast dwindling resulting to catastropic incidenses of flash floods in some areas.

another situation on my sideline observation. i have a land. the old man planted mangoes and is now fruit bearing. i take the joy of looking on those mangoes being harvested. they are money harvested from trees. looking positively theres money on trees. from the leaves, twigs branche of the tree that is a result of pruning.

but just like what your parents is saying ….work…work..you have to work to have money.

@mangrey

your understanding is incorrect. There is still a return from investing in issues albeit not in the form of money. When you invest in good shoes, you gain the satisfaction that after 5 years it is still in good condition. You cannot gain such satisfaction from cheap shoes.

Anyway, Karen is the expert here. So shall we just listen to her and be thankful for this nice and insightful blog?

ooohhhh…..am not disagreeing with what karen has writen on her blog. i have explain my point. as i have explain as on my sideline observation.

am just new on reading blogs of others. i notice at the end of the blog that says…..leave a reply…to my understanding it means that the write up of the writer is open for reaction just like what you did, reacting to my reaction. so a discussion is now between reactor…… is at hand and karen is going to enjoy to what will transcribe. i hope so

THE TITLE OF THE BLOG IS SMART MONEY am i right. i appreciate karens write up and her perspective.

a poor man spending his money for a shoes that will last him for 5 years is not smart on the use of his money. its a luxurious espending for a poor man. am not rich but am not poor either. i buy my shoes worth 3000 pesos a very big amount for a poor man.the amount can be use for additional working capital for his livelihood endeavor.

i use my shoes on weddings, baptismal celebration, on burial of friend and aquintances. on going to manila and places. i use it in going to my small farm and in all my daily activities, the shoes leaks in a year time. now i buy a new shoes worth 500 pesos and i know it will also last for a year. am satisfied with the comfort in using this shoes

let us listen to expert and react or we become a copycat. it is in reacting that ideas can be expounded for better use in our economic activities. so the country will progress forward.

my advice…D ….never attemp to stop anyone for participating. its not healthy period

This blog welcomes comments about any post, so please do not hesitate to agree or disagree. Let’s hear each other out, but always with respect.

Regarding shoes, I guess if you don’t use that particular pair that much, it will last long even if it was bought cheap. But think of school shoes: those P500-peso shoes won’t last a school year since the poor quality of materials used won’t stand up to everyday wear and tear. If you buy good quality leather school shoes (at P1,000+) per pair, chances are they will last a whole school year or two. I’m speaking from experience.

thank you karen for the clarification and for participating in the discussion. now it becomes healthier. thank you.

we are on money smart==in the ways of earning, wise spending, saving and investing.

one shoes for 500 pesos good for one school year

one shoes for 1000 pesos good for two years.

buy the 500 peso shoes and invest the remaining 500 pesos for additional capital
for your livelihood endeavor and earn extra from the additional investment and saving it to buy later on, in life for better shoes.

About this shoe debate.

My mom used to buy me leather shoes that ranges from 1,200 to 1,800 pesos before when i was in grade school and high school. Well, those shoes that she bought for me lasted a full 2 years before it actually breaks down. If it weren’t for me begging my mom to buy me new shoes every school year, and for me at puberty stage then, i could have worn my leather shoes from 1st year up to until 3rd year HS.

Now, i am sidelining as catering crew. I bought for me a shoe worth 900 pesos. Guess what, my shoes didn’t even last 6 months. I needed to bring the shoes to our neighborhood sapatero to get it fixed,soles and all, for 400 pesos! Now, if i bought a 1200 peso pair of shoes, it would have also lasted for more than 2 years without any repairs.

I am born poor, but I guess buying a 500 peso shoe is too much. It really wouldnt last a year.

Another experience, I got my back pay from my past work, and bought a pair of basketball shoes worth 4000 pesos. It is really very expensive. But it has already been two years, and the shoes is still as fresh as brand new. on the other hand, my current officemate sold to me pair of basketball shoes worth 1000 pesos. Now, just after 4 days of slight use, “nakaangat na yun gilid ng swelas.”

So, in my opinion. we not only have to spend wisely, we need to save up wisely too.

Ok, let us stir up the pot some more.

You have 1,000 pesos. Mangrey says buy shoes worth 500 pesos ( a pair that presumably lasts a year ) and invest the remaining 500 pesos so you can buy better shoes, say after a year.

But next year the cost of that pair of shoes would have gone up in line with the inflation in prices of goods. The 500 pesos invested now would have to earn enough to offset the effect of inflation. I wonder where I can invest 500 pesos that would earn 8.5% pa ( our average inflation rate ) ?

Parents should really teach their children the value of money and how hard to earn it.

sizing up the situation , we look on the issue on perspective influence by where our place of residence is and the financial status we are in. in my city, koronadal city at that.
500 pesos can do many things to earn more, yan ay kung kaya mong gawin.

kaya mo bang magtinda ng aroz caldo ng naglilibot sa bahay bahay tulad ng nagaalok ng avon pruduct. kaya mo bang maggawa ng biko at ilibot sa buong paligid. maraming magagawa ang 500 pesos at yang ay kung kaya mo.

alam mo ang pagtitinda ay palakasan lang ng loob at medyo pakapalan lang ng mukha dahil siyempre medyo nahihiya kapa pero sa matagalan at sanay kana ang mahalaga ay kumita ka sa malinis na pamaraan

caldo caldo lang yan biko biko pero kayang kitain ang hinahanap mong 8.5 percent pa sobra sobra pa. hindi nga lang class pero may malinis na perang kita. okey ba hijo?