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Am I Wealthy? What is Financial Freedom?

Am I Wealthy? What is Financial Freedom?

Mayaman ba ako?

Maybe the first thing you’d ask is: Am I wealthy? How do I know if I am wealthy? Can I as wealthy as Henry Sy or Lucio Tan? How much do I really need to be wealthy? Why do I want to be wealthy?

In a 2010 NSCB (National Statistical Coordination Board) FIES (Family Income and Expenditure Survey), a family must earn about Php200,000 per month to be considered high-income class. (source)

Following this definition and using statistics 5 years back, rich families number only 20,000 or 0.1% of the population during that time. The middle class earns an average of about Php37,000/month while the low income class earns about Php9,000/month.

True wealth is in your relationships.

For some of us, we may be earning about Php37,000 per month or more. But for some who earn Php200,000 or more every month, are they really considered rich?

Are you wealthy if you have:

a) Php 1 million cold cash in your pocket

b) Or Php 5 million

c) How about Php 10 million

d) Or even Php 100 million?

This is how an ordinary person defines wealthy: A person who earns Php100,000 or more per month. He has travels to every country every month. He has a yacht, luxury vehicles, vacation houses in Tagaytay, Batangas and Baguio. He has jewelry and branded clothes.

Then we ask: Is this really a wealthy person?

Answer is: Being wealthy depends on how your current resources can support your daily needs and expenses (lifestyle included) through time even if you stop working or generating income. Being wealthy is also defined by your relationships with people, your actions and values – things money can’t buy.

 

Wealth > Expenses

 

So if your present wealth or resources can now fund your daily expenses, you are considered wealthy, even if you stop working.

 

Happiness is not in the mere possession of money; it lies in the joy of achievement, in the thrill of creative effort.
Franklin D. Roosevelt

 

 

 

 

 

Going back to the above example. If you are earning Php100,000 but your lifestyle demands Php150,000 this means you need to get a loan or money somewhere else. You are not really wealthy – you are actually spending more than you earn.

You’ve heard this before: It’s not how much you earn, it’s how much you save.

No one is stopping us from being Henry Sy or Lucio Tan. You may be the next millionaire of this country who will employ a lot of people. You may be the next world-renowed franchise maker, or inventor or business owner.

The important thing is that we understand the meaning of wealth in practical and attainable essence. And this will bring us contentment, peace of mind and satisfaction. May mga bagay na hindi nabibili ng pera, tulad ng isang masayang pamilya, magandang pagsasama ng mag-asawa, ang ngiti ng isang taong natulungan mo atbp.

Para sa’yo, ano ang kahulugan ng financial freedom?

Every Filipino deserves to be financially free.
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