Manage Your Blessings Wisely
Sunday’s LOJ service was managing your money, with money as a blessing from God. There are people who earn their income by working hard, and there are people who earn their income by both working hard and through investments. There are people who earn huge amount of salaries. They may earn big, but then again, they also spend big. These people may presently live their life luxuriously, but there will come a time when they grow old or when they become sick and unable to work. They will eventually use up everything that they have, and end up poor.
There are people who are good planners. Even though they may not earn huge salaries unlike business executives, they practice the three R’s: Receive, Retain, Reproduce.
Receive- They receive their salaries.
Retain- Once they receive their salaries, they set aside what is to be saved, and what portion can be spent. A good 10% is set aside for tithes for work for the Lord through offerings. 20% goes to savings, and 70% does to personal expenses. The Lord says that as you bless others He blesses you even more in abundance. I believe this is true, as I have experienced this countless times. For the 70%, you can adjust our lifestyles to fit our budget. We can drink water instead of soft drinks. You can stop smoking if it will cost you a fortune just to maintain that unhealthy habit, not to mention the risk of hospitalization in the event of illness like cancer. You can commute instead of paying expensive parking fees and feeding expensive fuel to your car, not to mention maintenance expenses for your car. We should live within our budget, and not stretch our budget to support our lifestyle.
Reproduce- Instead of just putting your savings in the bank and earn a small percentage per annually, you can opt to invest your savings in other ways to duplicate or even triplicate your amount of savings. The first way is through paper assets. The second way is through business, and the third way is through real estate. While having a business can generate a huge earning potential for you, it is also capital-intensive. Same thing with buying properties. However, with paper assets, such as stocks and mutual funds, one with an average salary rate can get involved with such right away.
Many people think that putting money in the bank is much safer than putting money in the stock market. They are actually mistaken. Putting money in the bank and earning a low interest rate gives the depositor a loss of value on his money. Inflation rates rise, and the value of money decreases. In stock market, although you may lose money at the start, keeping your stock for a long term will get you more income than putting your money in the bank. The reason why people lose money in the stock market is because they trade heavily on stocks, meaning they follow the bandwagon effect of the market. They buy and sell on a regular basis, instead of keeping their stocks for long term. There is a difference between trading and investment. The secret is for you to invest in good and reputable companies that will last, like Ayala Corp. Do not invest in third liners or fourth liners, risky oil and mineral companies that depend on drilling results for the stock to gain its value. Invest in companies that regularly give cash and stock dividends. Companies that give out cash and stock dividends are companies that make money regularly, and that’s why they are required by SEC to distribute their income to stockholders.
If you pick any good stock, over a given no of years, what is that stock’s low price in the later years are at higher levels than that that of the stock’s high level during the earlier years. In a long term, the company’s value increases. That’s why it pays to invest in them.
If you are part of the 2nd group of people, then you have nothing to worry about when retirement comes. You’ll have plenty to go on with even in your old age, and plenty enough to bless others with as well. However, if you are part of the first group, then start worrying about your future. Start saving and start buiding your storehouse.