Wednesday, September 24, 2008

How's your X-Curve, buddy?

Favorite subjects / topics? Let’s see.
Physics – compulsory kasi eh
Math – well, to a certain extent
History – profound
Arts – =)
Music – Life
Tsss…Well what about finance? Ah..Uhm..Well..You know…
Hope you get it.
I’m not that at ease when money talk is involved. (simply for the reason that I’ve been to a number of money-related problems before, haha. Na-trauma ba ‘ga?)
Good thing that Chance (indeed Chance) led us to a finance seminar by a managing director of a company in the business city of Makati. Fundamentals of Financial Planning and How Money Works, that’s what the event was called. A little reluctant before, I nevertheless enjoyed (in fact thankful) the whole thing.

So, let me lay down a few salient points from it:

Point 1. Well, we have to understand the concept of that thing he calls X-curve. Briefly, it’s a sketch of our responsibilities and wealth as a function of time. As time goes by, we have to lessen our responsibilities that are financially-related and at the same time increase our wealth (in the form of savings). The significance of this was eventually shown later on in his talk.

Point 2. Realize that money/income is just temporary. This one I think does not need reiteration. =)

Point 3. Financial discipline. He said that this is needed no matter how big or small one’s income is, whether you are an executive officer or a simple employee.

He then used the bulk of his time in explaining how money could really work for us. (Research on the Rule of 72 by Einstein…daw). Add to that a number of concrete steps to one’s financial security (oh yeah, the DIME acronym,haha). I would agree to what he said that it’s good that at our age, this thing about finance is already taught. The younger, the better.

(I’ve taken notes of the seminar, a good thing because the electricity was rudely interrupted, rendering the OHP and thus the speaker’s PowerPoint presentation useless. If you, chance reader, want it, I’d gladly send it you.ô)


Anonymous said...

I almost scampered away when I read you introduction but I continued reading...

you were profound, yes. thanks for the brief lesson ;)

Pransis said...


Anonymous said...

How's your X-curve??? Doing great... hope yours too!!! hehehe -jheyzee

Pransis said... the process of fixing it pa,haha.
long live x-curves,haha.