By Vic and Avelynn Garcia
Do you know that whoever you are and whatever you do, you are a MANAGER? Yes! YOU ARE A MANAGER! I’m sure many people will agree with this. And for us to handle money well, we need to determine first and foremost, what kind of Money Manager we are.
For many years now I have learned that there are four (4) kinds of Money Managers. Let me explain each kind of money manager and later on, you’ll be able to identify which among these four types you fall under.
Before I introduce the first Money Manager, let me share with you few stanzas from a 70s hit song popularized by Glory Gaynor:
At first I was afraid, I was petrified
Kept thinkin’ I could never live without you by my side;
But then I spent so many nights
Thinkin’ how you did me wrong
And I grew strong and I learned how to get along.
And now you’re back from outer space
I just walked in to find you here
with that sad look upon your face
I should have changed that stupid lock
I should have made you leave your key
If I’ve known for just one second
you’d back to bother me.
Go on now, go walk out the door
Just turn around now
(’cause) you’re not welcome anymore
Weren’t you the one who tried to hurt me with goodbye
Do you think I’d crumble
Did you think I’d lay down and die?
Oh no, not I. I will survive…
So, have you guessed what kind of manager am I discussing about? The first Money Manager is called the Survivor. His only goal is to survive!
A Survivor is a money manager that subscribe to the principle of “Living within your means.” An example of having that kind of principle is this: Assuming Pedro’s monthly salary is P20,000. For January 20,000 income, 20,000 expense; February 20,000 income, 20,000 expense, March 20,000 income, 20,000 expense. You may ask him, “May problema ba?” He will tell you, “Wala!” No problem at all. But come April, nasira ang electric fan nya! What does he do? Eh sanay na sanay syang gumastos ng 20,000?
Since he needs to have his electric fan fixed and he doesn’t have extra money for the repair, he opts for the second option—buy a new one. And since he doesn’t have cash, he will borrow money or use his credit card to purchase an electric fan! This is what usually happens to Survivors. Because they are used to spending just how much they have earned, so, whenever they encounter unexpected expenses, they have no other way but to swipe their cards. Thus, Survivor type of money manager is a person whose expense level is almost equal to his or her income level.
Now, I would like to introduce the next Money Manager, through a stanza from another song made popular by one of the most popular group of all time, The Platters.
Oh-oh, yes I’m the great pretender
Pretending that I’m doing well
My need is such I pretend too much
I’m lonely but no one can tell…
Obviously, the second Money Manager that I’m referring to is called Pretender.
Who do you think are the Pretenders? Well, you’ll see their personality from the lyrics of the song I just shared with you. “Pretending that I’m doing well, my need is such, I pretend too much…I’m lonely but no one can tell..” Di ba malinaw?! Try to observe a typical yuppie or the young professional working somewhere in Makati or Ortigas. In the morning before going to the office, he needs to take a cup of coffee but instead of drinking 3-in-1 coffee, he’d drop by an expensive signature coffee shop to buy his coffee.
He’d ride the elevator holding a cup of coffee. You’ll notice the logo in front of the cup which he is obviously showing off. You see him proudly walking while sipping his cup of expensive coffee. But in reality, this employee doesn’t have much to spend for that branded hot drink. And when you ask him, “Bakit doon ka bumili, eh konti nalang ang pera mo?” “Syempre! iba pag signature ang coffee mo! Plus the ambiance is fantastic!” This is what he’d tell you. Indeed the need is coffee but he pretend too much by buying beyond his capability!
“My need is such, I pretend too much. I’m lonely but no one can tell.” As look at people around you probably noticed this, “lakad mayaman, bihis mayaman, amoy mayaman, mukhang mayaman”. You will see smile across their faces but when they are alone, they are lonely but no one can tell. This is because of the huge debts that they have incurred because of their lifestyle.
This is a common problem why many Filipinos remain poor and even becoming poorer. One of the reasons why most people are becoming financially challenge is because they tend to live beyond their means just to show others that they are ok. They can’t wear jeans that are not branded, or rubber shoes that are not endorsed by world-renowned sports icons.
This type of money manager is someone who pretends that he is doing well. Someone who doesn’t just spend his earning—but he overspends! If the survivor is used to allotting all his salary for his expenses or sakto lang, a Pretender spends beyond what he has. And because this is his way of handling his finances, he results to borrowing money just before the next payday comes—this then has become his regular cycle.
In short, my dear readers, a Pretender is someone who would like to believe his income can cover up for his overspending habits but eventually will turn out to be in debt.
Have you determined the kind of Money Manager you are from the two that I introduced? If Wala pa rin diyan, read my next article next week to know the two others and find out the type of money manager are you and the type of money manager that is the best for you to be!
Next week, we will continue our journey in unleashing the highest potential of your money!
(Excerpted from Vic Garcia’s book Unleash the Highest Potential of Your Money)
Vic Garcia is currently the President and CEO of Unleash International Corporation, a high-tech, high-touch, high-impact training company whose main mission is to unleash the highest potential in people towards success, happiness, and significance through licensed and originally authored, world-class, high-impact training programs.
Vic has been in the business for more than 20 years and has gained the trust and confidence of countless organizations. He is also the author of the Unleash Workbook and Unleash Learning Systems. His area of competence varies from work and life improvement, financial management, leadership, system, productivity, teambuilding, and other specialized seminars that will unleash the highest potential in people. He served as a consultant and a management coach to a number of CEOs and leaders of different companies. He is often invited to different television and radio programs to share his expertise in unleashing the highest potential in people.
Learn and apply practical ways of effective financial management through easy and doable techniques when you follow this series weekly. Follow Vic on Twitter, @UnleashMoney. Also visit www.unleashinternational.com and Unleash International on Faceboook, www.facebook.com/unleashinternational.