I read this article on the inquirer: How to save if you’re yong, ambitious…and earning only P20k, at medyo hindi nakapagpigil ang lola nyo, sinulatan ko po ang Inquirer. Basahin nyo and tell me about your violent reactions!
Hello sir,
I read your article about this guy in his late 20′s with some MBA aspirations and buying a condo and a car. I can’t help but notice the “advice” you gave “him” if ever he is real but here is my take on it.
The way I would approach this problem is by simply being realistic. First things, first. I’d like to see if he really can afford it. So, the first thing that needs to be done, is to count his stones, the stones that he throws away and see how many stones are left with him. Read: Budget. I know you told him about budget – but that was not your focus.
Here’s what I came up with. Feel free to change the numbers should they look funky:
Now, if his 1st objective is to finish an MBA, I honestly don’t see any MBA money from his budget. I’d tell him to get real! Read: You can’t afford it sweetheart! Understand that you won’t see any line in this budget about sending money to his parents, or sending his brothers/sisters to school if ever he has this obligation. This is a cutthroat-dried-up-can’t-buy-McDo budget. Granted he can stash away Php48,000 per year – trust me, even if he invest it at an average of 12% annual returns, that’s not enough. Should it be the end of the world? I’d check my alternatives – and quite frankly, if he is creative, he’d find a lot. Why don’t we try?
Here’s my crazy ideas:
If I were him, I’d talk to my employer. Sit down with your boss. Tell him about your plans. Heck, it’s in the best interest of your company if you go for an MBA. If you have to sign an employment contract such that you stay with them for x number of years for a long as they assist you with your MBA, any assistance is a winner. Your goal is that they pay your tuition fees 100%, or part of it and give you extra days off. You’d lose nothing by talking to them.
Find out any student loans from the banks.
Find out any scholarships offered from schools.
Talk to papa if papa can afford.
Get a second job.
Now, if he can find ways to fund his MBA using outside sources, reaching for the other goals are much easier. He is only left with the car and the condo.
Now, le’ts look at the car. Let’s say he shoots for an Altis at Php750,000 with enough “downpayment” to minimize his monthly payment to let’s say Php35,000 per month. He still have to pay insurance, maintenance and repairs. Go back to the budget, do you see Altis money there?
Now, let’s look at the condo. Well, let’s look at the budget again.
You know what I mean?
Reyna Elena
www.reynaelena.com
Ano sa tingin nyo? Me pag-asa bang makapag-MBA sya sa kinikita nyang Php20,000 a month?
Stumble Upon
Del.icio.us
Buzz
{ 7 comments… read them below or add one }
my first visit and i say TUMPAK — wake up young man! let’s be realistic with our goals though we should not be afraid to dream.
[Reply]
kengkay,
actually me nakalimutan akong advise…. eto:
pag di kaya nang papa – maghanap nang panibagong fafa…
[Reply]
Uhhhhm I’d say forget the condo and the car for now. My old econ professor used to say “Sacrifice today means affluence tomorrow. ” If you can’t sacrifice, then I suggest growing your income. Why not become a call boy?
[Reply]
I agree…very limited resources nya kaya dafat think nya muna kung aling investment uunahin nya… kesa naman pagsabay sabayin nya piktapos in da end ala syang natapos, at di rin ma sustain ng datungs nya ang car and condo.
[Reply]
sideline, ipon, tiis, invest, more diskarte… naks, parang ang dali. hehe
[Reply]
syut na naman!
wala sya pag-asa, kung meron man eh second class mba sya (meron ba nun?), dahil mabobobo sya sa kanyang pagtitipid!
[Reply]
hehehe inang, ito pala yung tungkol sa case study nating guy. siguro hanap siya ng sponsors sa studies niya like what i did dati. there are foreign governments which are willing to give a grant if the applicant is qualified.
[Reply]