Would you be able to recognize a rich person just by looking at him? Probably! Most people can clearly imagine how a wealthy person would look like; someone with a huge salary, nice clothes, expensive jewelries, nice big house, drives a car, eats at fancy restaurants and mingles with the famous and powerful people in society. Such a person could really be rich but not all of them are! Some of them could also be suffering from financial difficulties and “baon din sa utang” just like many Filipinos.

If you can’t say for sure that a person is rich based on his looks, his actions & what he appears to own, ika nga “mukhang mayaman”, how then can you tell with certainty if someone is wealthy or not? We use a simple rule and it’s neither spiritiual nor philosophical in nature; just plain economic common sense:

“You are truly wealthy if you can continue to live comfortably your desired
way of life even if you stop working for a living!”

This statement implies that a company Vice President who earns a couple hundred thousand of pesos monthly, owns a big house in a first-class subdivision, drives a sports utility vehicle, wines & dines at classy restaurants and a high roller at the casino is not considered wealthy if he cannot sustain this lifestyle the moment he stops working. A person may look rich, but he is not really wealthy if he has to drastically change his lifestyle (and forced to give up his wasteful leisure activities) just to survive in the event that he loses his job or his main business goes bankrupt. On the other hand, an ordinary person can be truly rich if he can sustain his simple way of life even if he doesn’t work a single day in his life ever again.

You should understand that true wealth has a lot to do with the lifestyle you choose; not just about how much money you have. Having millions in the bank doesn’t automatically make you rich (as we have defined it). If your extravagant lifestyle drives you to spend millions also, you are no better off than a regular low-income worker who only has enough money to meet his family’s basic needs. If both of you will suddenly lose your sources of income, the low-income earner will most likely survive longer than you, a so-called “millionaire.” In such a situation where he will “out-survive” you, we can consider the regular guy as wealthier (or put in another way, you are “poorer” than the other guy). So choose your desired lifestyle carefully. Better yet go for a simple way of life. The simpler it is, the easier it will be for you to achieve true wealth.

If you believe you are already financially stable now, try to imagine what would happen if your regular income suddenly stops coming. Would your family survive without having to alter your way of life? And for how long? Great if you can continue to have a happy & comfortable existence for the rest of your life; that means you are really wealthy. However, if you need to make a major change in your lifestyle to ensure your family’s long-term survival or you are not sure at all if you can even survive, then you really have to work at improving your financial condition. This is where Pinoy Smart Savers can help; by providing you with practical guidance about money management and wealth-building.

Unlike some people who are born rich, the average Filipino will have to exert a lot of effort to achieve true wealth; it will take a lot of sacrifices and it will take many years to attain. But don’t be discouraged because it can be done during your lifetime. With discipline, commitment, unwavering determination, relentless drive, “sipag at tiyaga,” the right attitude and adequate knowledge about personal finance you can do it. Kaya mo Pinoy! It begins with “believing” that regardless of what you have right now and whatever your level of income is, you have the ability to become truly wealthy. You also have to convince yourself that having a lot of money has nothing to do with your worth as a person. People who say otherwise do not understand what it means to be really rich and probably have low self-esteem.

Approach your journey towards true wealth and financial freedom with a positive outlook & high self-esteem and it will become easier and more enjoyable. And the next time you see someone who “seems” to have everything and “looks” wealthy, smile, because you could be “richer” than the person.

Last update: February 14, 2008
Copyright © 2008 www.PinoySmartSavers.com All Rights Reserved