Tuesday, August 30, 2011

WHAT IS YOURRR LATTE FACTOR???

Dear Blog

One of my Goals for 2011 was to gain better financial stability. Honestly, we all know it is hard to eliminate our spending habits from our daily activities. Most of us are addicted to spending. I tried to use one of the saving techniques, which was writing and planning accordingly, and trying to eliminate unnecessary spending. And trust me; it was not an easy one! So, I have been searching and reading books on financial freedom to help strengthen my mind in the financial realm.

I discovered that we are all programmed to spend what we earn.  The more we earn, the more we spend on lavish things to “try” to live comfortably. We all desire to attain a good job so that we would be able to“save”. So we say! But the truth is, wealth is not built on how much money we earn but how we plan to spend our money and what we invest the money in.

I came across this angelical book called “Start Late, Finish Rich” by David Bach. Believe me, this book is amazing!  I believe this book did not just land in my hands for an irrelevant reason but rather a tool from God to teach me on some of the important techniques to financial freedom. While reading the book, I discovered a financial strategy called “Latte Factor”. Latte Factor is a concept created to enable us to become aware of the unnecessary “little expenditures” that we waste our money on, without realizing how much they add up to.

The purpose of this concept is to allow us to track our daily spending, and become more conscious of the money we waste on little things like, Starbucks coffee, chocolate bars, Spas or Dinning out every day. And while monitoring our spending, we take some of the money and deposit  it into an investment account, example RRSP. By doing so, we will be saving a fortune when we least expect it.

I found my Latte Factor

Before Work
Apple or Orange juice =$ 1.50
Bagel with strawberry cream cheese = $ 1.89
At 10:30
Timmy’s medium fruit smoothie =$3.48
Timmy’s Chicken wrap =$2.59
M&M =$1.00
Noon (No lunch)  
Mr Greek Roast chicken dinner =$7:78
_______________________________________
Average total daily spending  = $18.24

If I take $ 15 a day from my daily spending and deposit it in my investment account, guess how much I would be saving …

Assumes 10% Annual Rate of Return
Daily Investment
Monthly
Investment
10 Years
20 Years
30 Years
40 Years
50 Years
$15
$450
$92, 180
$341,716
$1,017,220
2,845,836
$7,795,976


Hypothetically, if I and my significant other or a friend is saving together, in a span of 50 years we will save $ 15,591,952

Over 15 million dollars will be saved if I cut out my little lavish things. 

Dear Blog, It’s really mind blowing.

I really wish they taught this in school…but I’m glad to say, I have now found my latte factor , WHAT ABOUT YOU??





**Express and Reflect on your World**


 Sincerely,

Prissy Birago

Sunday, August 7, 2011

IS GOD A VENDING MACHINE???

Oh God, Oh God, Oh God

“I need you right now. I know I haven’t been very good lately, but I promise if you help me pass this exam, I will be really good. I have not been trying my best to study for this exam but God you said we shall ask and you shall give it to us. So God, I am praying and asking you right now, please please please pleaseeeeee help me pass this exam and I promise I will not party before my exams again. Pleaseeeeeee God pleaseeeeeee  . Amen”

This was one of my many prayers during exams period in first year university. Thinking back, I treated God like a vending machine. I constantly expected God to grant me all my “wants” after praying. I finally grasp that God does not work that way. God does not respond to all our prayers instantly. He examines our current situation, and decides if our desires will be beneficial to us at that present time; then he takes action! If it's not beneficial, he would refuse our request until we are in the right position to receive our wishes.

 Imagine how this world would be if every prayer was answered?!

About month ago, I was waiting for the face of God for 15days.During this time, I prayed for certain possessions, however I was aware that not all my prayers would be answered instantaneously.

 
Few weeks after, I was conversing with my male friend and about 15mins into the conversation, he randomly said, “After the 15days of fasting and praying, have you received any results from God yet?  I said yet?!! Honestly, I was shocked he would ask me such an irrational question. I made it clear to him that I am not expecting things to happen right away. Excellent results will come when God is ready to grant it to me.

Many times we treat God like a vending machine, expecting to press the right button and receive exactly what we requested for.  We select A-6 and expect to receive Hershey chocolate but when we receive the wrong product or receive nothing, we tend to get irate. God does not perform in such manner.  He works on his own will and gives us the gifts he knows we are prepared enough to handle when the right time approaches. God will not respond to our prayers when we are not mature or equip enough to handle it.  

Why do we get angry or lose faith  when we feel like God is not answering our prayers?

 
Is God a Vending machine? NO!! Vending machine has many malfunctions. Sometime it steals our money; it may be out-of-order or run out of products. And when this happens to us, we may try to kick it or even shake it, hoping that the machine will grant us what we wanted.  God does not work that way; he never malfunction when he’s at work. God evaluates our capacity and our current circumstances before he grants us our desires. He ensures our faith is strong and we are prepared enough to handle what he bestows to us.

We should remember to treat God like God and not a mindless machine. There is no price on his endless love and gifts. He’s not a seller but a free giver.  We should operate in confidence and faith and once our capacity is develop to a level that is acceptable to God, we will claim our possessions.


**Express and Reflect on your World**


Sincerely,


Prissy Birago