Career Growth Track: Develop Financial Security
For the Career Growth Track, Mr. Armand Bengco and Mr. Chinkee Tan gave their two cents when it comes to developing one’s financial security.
Mr. Bengco started his talk by differentiating what money is, what income is, and what finances are. He mentioned that money is the means for transaction, while income is something we receive as compensation, and finally finances are assets that generate wealth. He goes on by saying that as an able human being, “it is our obligation to be wealthy.” By wealthy, he means “sustaining one’s chosen lifestyle without having to work;” and with that, he comes to the conclusion that an individual’s understanding of wealth is personal.
Moving further with the discussion, he goes on to discuss the five activities in managing finances such as the different types of Earning (Active Income and Passive Income), as well as the Levels of Planning per class based on economic status (Lower Financial, Middle Financial, and Upper Financial Classes).
Explaining the Levels
For people in the lower financial classes, they only usually think of their budgets for the day, only looking at their expenses without evaluation. This way, they view their finances as something that is scarce. For the middle class on the other hand, they think of their finances in terms of their monthly needs; usually integrating their finances with their income, but not really looking towards their future plans. Finally, the trend with upper financial classes shows that they plan their budgets three years in advance. This way, they are able to forecast any expenses that come their way, taking into consideration any financial forecasts that come into play such as inflation and the like. With this mindset, people in the upper financial classes sustain their wealth over long periods of time.
“A good financial plan is not good because the plan was [realized]; rather working on it means it’s good,” Bengco stated.
Mr. Tan’s talk was less structured and focused more on the affect rather than the logical side; a contrast from Mr. Bengco’s earlier engagement. He focused more on the attitude of the person towards money rather than the financial means. Specifically, he focused on the idea of Intention + Right Decision + Right Information = Destination, or simply put, Mindset + Action = Results.
He then went on to speak about his books, moving on to converse about the facets of marriage, namely how couples should act in relation to weddings and marriage itself. He says, “Singles should save up more for the marriage rather than the wedding.”
As a closing statement, he said: “Control what you can. Spending is something we can control [therefore, we can control our finances].”