I attended the 1st ever TGFI Financial Literacy Summit in the Philippines held last April 1 and 2, 2017 as one of the speakers. Since our company, DRIVEN Marketing Group Inc., co-organized the whole event, I anxiously walked around the whole function room feeling the crowd and also cherishing the success of the event.
As the plenary session came to its last speaker, it was time for Mr. Edward Lee, the Chairman and Founder of COL Financial, to take the stage and delight the crowd.
He was a crowd favorite! I remember interviewing some of the attendees right after the morning plenary session as I catch them walking around the expo hall to check out the booths. Almost unanimously, they answered that the biggest learning they got is from Mr. Lee’s talk.
I observed during that morning and I also sat down in one side to listen. I got reminded by Mr. Lee about the 3 simple laws of money. I realized that yes, these might be simple, but most people fail to apply these 3 things consistently.
The 3 Simple Laws of Money
First and foremost, Mr. Edward Lee mentioned about the first law: Save 10-20% of your income.
Simple? Yes. Definitely! Easy? Big no!
How long do we know that it’s important to invest yet we do not do it. We may have a piggy bank at home that we fill up with coins but saving a definite amount first before you spend needs some kind of discipline to push through. Edward Lee really pushed for the importance of this first law. That’s the reason why people remembered his talk pretty well.
Second is knowing where to invest your savings.
It is not enough to just save money. You got to invest it so it will do its job which is to work for you! Money that is not invested is like a sleeping giant. Aside from blocking and occupying a big space, its useless!
Gone are the days that savings will give you a great life! Moreover, its not enough just to invest. You got to study where you will invest your money so that your Financial IQ will grow some more.
The bigger the Financial IQ, the bigger the chances of success in terms of money.
The third law is you got to reinvest your earnings.
What is the sense of investing, then earning, when you don’t reinvest it!
Earning 20% in your initial investment will not go far when you spend your investment earnings into personal use. Money is supposed to work for you. They are like soldiers in a mission. The more soldiers you have, the bigger the fleet that is working for you. The more people (or in this case money) is working for you, the easier your life can get. The faster you will reach your financial goals.
So what now?
What’s important is knowing your purpose on why will you save money, invest that money, and then reinvest it. When you have a goal that is clear enough, then investing becomes exciting.
When you can see your destination, you get excited to pave the way and go though that path. Saving and investing becomes easy when you clarify things in your mind. A clearly defined goal will help you in having the discipline that you need to win the money game.
I believe it all starts with a good sense of money management to begin with. So invest in yourself so that you will be able to overcome the challenges that may come your way. When you start the discipline of saving and investing, you will be tested. Only those who are really willing, will be the ones to succeed.
Start the 3-step process right now!