I was having coffee with a friend of mine and we were admiring the frugality of one of oura mentors. Ang yaman yaman niya pero ang kuripot pa rin niya. My answer was... ganon naman dapat.
Our culture looks down on people who are kuripot. In fact we should be a nation of kuripots so that our savings rate will go up. Look at the Chinese and the Japanese. They are a nation of savers and they also happen to be the richest countries in Asia.
And you know what? Ang kakuriputan ng mayaman ay hindi para sa malalaking bagay, in fact the rich are frugal in the small stuff.
- I know of one taipan who goes around his building to personally turn off the lights during lunch.
- I know a lot of wealthy people who shop using coupons or only buy stuff at a minimum of 30 per cent sale.
- The rich carry a database of where is the cheapest place to buy certain groceries. And they go there.
- I save the water from my shower to use it for flushing the toilet.
- The wealthy bargain no matter how small the amount.
There are so many more examples but the question is why are the wealthy so kuripot when they have so much money. I'll give you an analogy... I was talking to my friend who is so thin and fit. He works out so hard and eats so healthy. I ask him... Pare why do you workout so hard when you are so healthy already? He tells me an answer which makes me think... I am healthy because I workout so hard...
So it’s the same thing with being healthy. Why are the wealthy so kuripot when they have so much money? Actually it’s the reverse. The rich have so much money because they are kuripot!!! They know that if they can save small amounts of money this can go to savings and investment. The money will compound and compound and eventually it will be big.
Throughout my study of the rich I have learnt one thing - walang yumaman na hindi kuripot. Meron mayaman na hindi kuripot but the ones that became rich from being poor are all KURIPOT.
For more information on how I can help you email me on hoover@barongroup.com.ph.
Hi Hoover,
ReplyDeleteI thought of writing a comment here rather than sending you an email, so other readers can see.
Although the concept of the rich getting richer because they are frugal is an old discussion, but the topic is still much alive today. I agree with the idea of saving every dollar/peso possible, but I think there is more to being frugal for rich people becoming richer. I believe rich people not only saves every cents possible, but they also look at investment opportunities that comes their way and they take risks such as buying investments or acquiring businesses. Also, some or most rich people are business minded or investors, and instead of buying the latest Mercedes Benz 4x4, they would expand their organization yet keeping their expenses down. I'm sure there are other major ideas but my point is the transition from being poor to becoming rich is 'financial literacy'. There are: #1. Save money #2. Take risks by doing business and/or investing using the money saved. #3 At the same time keeping their lifestyle or spending habits the same #4. Repeat the step 1, 2 and 3 :) Your comments?
I have one question though. I remember few people said to me, "you can die tomorrow so you should live like its your last day". Now, I am not fan of this saying, but what I am a fan of is 'balance'. However, where do you think is the balance in life in terms of spending or do you believe in balance lifestyle? If yes, then what are the categories in your views and how often? I mean, you can't always be 100% frugal. Everyone has their 'Kryptonite' - everyone has a weakness. It can be food, new car, sound system, or simple morning cup of coffee, or travel, or the new iphone 4 (rolls eyes). In other words, when do you treat yourself?
First, I'd like to define balanced lifestyle. My definition of a balanced lifestyle is not to work too much and be able to spend time with your family. The problem with having too much of a consumer lifestyle is that you have to work so hard to pay for the stuff you don't need and in the end your time with your family suffers. It's a vicious cycle. I don't think a dying man will say - 'I wish I had bought that IPhone 4 or I wish I spent more time on my IPhone 4'. Live your day like your last by spending time with those you love and enjoy being with. Create shared experiences because that's what life is all about.
ReplyDeleteOne last thing, I'm not saying you can't buy 'your weakness'. I'm saying, create a goal and vision to retire quickly. Create a system of earning and spending that will achieve that goal. The system should allow some 'weakness' spending. Then follow it. That's it.
rich people don't work so hard to bring their money to their graves... they work so hard to create an empire of their own so the next generation wouldn't go through the process of how hard it is to start from nothing
ReplyDeleteTo a certain extent... this is a correct statement. I believe this is one reason why the rich work hard.
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