Kurot Principle...

I subscribe to a Financial Coaching enewsletter and below is the newsletter I got today.

It's worth sharing so I'm posting it here. It does make a lot of sense. It's a very simple principle, but it definitely teaches one a lot.

Prior to moving to Singapore, I must admit that I belong to the dakot club. I can try justifying it by saying, "Oh, but it was only after graduation that I really started to treat myself and enjoy the good things in life." When I think about it now, I've been treating myself far too long. LOL!

Having been in Singapore for a little over two years, I'm impressed with how money savvy people are (or maybe just the friends I know?). Maybe the fact that I am also going to reach mid-life next year (yes, I intend to live only until 70 and that is if I'm coupled; 60 if I'm single. LOL!) also is another factor I am thinking about retirement and savings all of a sudden. Then there's that uncertainty of where I will be by March 2014 since my work pass will be up for renewal again very soon. I love Singapore. I really do. However, I know I must also think long term.

Anyway, read the Kurot Principle below.

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Below is a short excerpt from Vic and Avelynn Garcia’s book entitled "Kontento Ka Na Ba Sa KaPERAhan Mo?"

I suggest you grab your own copy of that tiny book as it contains very practical and down to earth tips on how to better manage your finances. I liked very much their style of writing that's very much like talking to their readers. Lots of humor too. I felt like attending a live seminar with their reality-drawn dialogues. Definitely a must read!

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Ano ‘yung Kurot Principle? Ay, ang ganda nitong Kurot Principle na ito. To better understand this, I will tell you a story of a person na balak bumili ng cellphone worth P1,000. Nagkataong mayroon siyang P100,000 na savings. Puwede ba siyang bumili ng cellphone? Puwede, kasi yung P1,000, kurot lang ‘yon sa kanyang savings.

May pangalawang taong balak bumili ng cellphone. Ang bibilhin niya ay worth P1,000 din. Mayroon siyang savings sa bangko na P1,000. Bumili siya ng cellphone. Anong tawag dun? Dakot na ‘yun! Dinakot lahat ang pera niya!

May pangatlong tao, balak bumili ng cellphone, pero walang savings. P1,000 lang naman ‘yung bibilhin niya. Bumili siya. Anong tawag ‘dun? Utang na ‘yun!

Ang tanong: ano’ng prinsipyo ang ginagamit mo sa buhay mo? Kurot, dakot, o utang?

Magtataka pa ba tayo kung bakit tayo naghihirap o baon sa utang? Ang gagaling nating dumakot! Ang gagaling nating umutang! Gusto mong yumaman? Starting today, matutong kumurot. Kapag may bibilhin, dapat kinukurot lang! Nagkakaintindihan ba tayo? Kapag ginawa mo ito, pangako, yayaman ka.