Tuesday 31 May 2011

PERSONAL FINANCE: THE X CURVE - WEALTH VS. RESPONSIBILITY



The X-CURVE  simply shows the relationship between WEALTH and a PERSON'S RESPONSIBILITY.  Unless a person is born with a silver spoon, normally, the average Filipino has NO SAVINGS when he gets out of college and bigger responsibilities as the family starts to rely on him/her when he starts working. As he/she reaches 30 to 45, he/she normally has more responsibilities with the family. Ideally, we all would like that as we age and reach retirement of 60 or 65, we would like less responsibilities and  big savings. By retirement, we would like to accumulate so much wealth and Live On Interest (LOI).

The X-CURVE also shows 2 kinds of risks:

1.  Dieing too soon - Here we all need to be prepared. In case the the inevitable happens, we should make sure our loved ones that we might leave behind are amply protected.
2.  Living too long -  The problem if  we live too long and we do not have savings is we become a burden to our families since hardly will any employer hire someone over 65.

The question now is, where are we in the X-CURVE? Are we prepared for any eventualities?  We only need to draw our FINANCIAL GOALS and make that DECISION and work hard towards reaching our DREAMs.

If you have any questions about the X-CURVE or would like to be guided or know how to be protected or what investment product best provides a solution that matches the X-CURVE, please do not hesitate to reach me at mtcm.deleon@gmail.com.

SOURCE:  In the first quarter of this year 2011,, I attended Bro. Bo Sanchez' Truly Rich Club FINANCIAL COACHING Seminar. A speaker  from IMG lectured on the X-CURVE. Incidentally, there was a young lady in the table where I sat and invited me to a free financial literacy lecture at  WFMA.. The same X-CURVE was reinforced in WFMA. I am grateful  for these  2 companies that I learned about the X CURVE this early. . Both IMG and WFMA have exactly the same operations. They carry almost the same investment products.