It’s safe to say that I had a humble income as it didn’t reach six figures (even if I worked for nearly a decade). But my humble income gave me the opportunity to build my Whatever Money.
I Live Below My Means
Every income appraisal, I made sure that my expenses didn’t keep up with it. That meant an additional income didn’t equate to additional expenses.
My life was boring, you could say that.
But when the opportunity came, I was able to say “Whatever, I have money,” and left the corporate world. After all is said and done, I must say that I won’t trade my boring life to a life filled with “precious moments” only to find myself in a situation I can’t get out of because I don’t have Whatever Money.
And as I said before, I didn’t have a million when the opportunity came. All I had was a quarter of it.
As I reviewed my investment portfolio, I realized that my average investment a month was only Php3,000.00 for 6 years. And see below how much income my investment generated for a 6-year time frame:
Php3,000.00 x 12 = Php36,000.00 Annual Investment
Php36,000.00 x 6 = Php216,000.00 Total Investment
Php250,000.00 – Php216,000.00 = Php34,000.00 Investment Income
That’s about Php5,600.00 or 15% annual earnings right there! Yup, that’s net of costs (i.e. trading fees and taxes).*
If I went with the crowd and take investing for granted, the opportunity cost would be 15% annually. What a shame would that have been.
So I speak to those who have a “humble income”. A 6-figure income is not the gun start to investing. Take a percentage of whatever amount you receive then invest it because when the opportunity passed, it might cost you 15%. Or more.
*The equity value of stock market investments vary daily, as the price per share of stocks does. This example is based at the time of computation.