“Pare, Can I Borrow Money? I Need It for My Son’s Birthday”

I have an acquaintance who has been an active investor in online multi-level marketing and other paid-to-click schemes. Indeed he was making a lot of money from his ventures.

But there is one problem. Whenever he earns thousands, he spends them all on things that are on his wishlists. Monthly wishlists.

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Recently, Mr. Acquaintance started to lose his edge in gaining more recruits for his online businesses. He could not earn as much as what he was earning a year or so ago.

The items that are on his monthly wishlists have started to just remain as wishes. I advised him to learn to save some for an emergency fund and then invest some more in other financial instruments like stocks or mutual funds for his long-term needs.

Even at that point when he has little left on his hand, he said he’s okay and can still pull it off.

“Pare, Can I Borrow Money for My Son’s Birthday?

One day, Mr. Acquaintance approached me and wanted to borrow money for his son’s upcoming birthday. He wanted to celebrate it in one of the famous fastfood chains for children in the Philippines.

That will be Php25,000, please?

That being said, I gently declined his request and told him that I just have enough for daily needs. I did not mention anymore about saving and investing.

Here are the problems with Mr. Acquaintance:

1. He did not have any long-term financial goals.

2. He believed that he can rely solely on one type business for his family’s living expenses. He did not diversify his money.

3. He did not save money.

4. He did not cut his bad spending habits and borrowing. He would even borrow money just to satisfy their wants and lavishness.

5. He continuously refuses to learn how to invest for his and his family’s future through various financial instruments like stocks, mutual funds, bonds, or even in real estate.

If you were in my position, would you lend him money? What would be your advice to Mr. Acquaintance?

You may list them down on the comment section below.

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31 thoughts on ““Pare, Can I Borrow Money? I Need It for My Son’s Birthday””

  1. footballer says:

    send a link of this article to your friend. i think that will wake him up.

  2. This is the hardest advice: To start his discipline in handling money…. First baby step is to pay himself first and must not touch it. Instead, should be invested. He should have learned his lesson the hard way.
    one bad thing about MLM is that people are taught to earn to fulfill their lavish dreams but forget to teach about saving money…

    1. That’s right. But I have this observation from some of the people I met who are into MLM. Most of them believe that things they bought from MLM earnings like car, gadgets, clothes, etc. are “investments”. What can I say? 🙂

      1. If only all MLM company or all companies include financial education …The focus is always on the earning to have money to spend, not money to invest…

        1. I’ve heard that Amway invites finance coaches to teach about budgeting and saving, etc. for their new employees/recruits. Recently, i heard that Vmobile are likewise conducting similar talks. But most online-based MLM’s do not have such.

          1. Then that would be good. Sana more MLM companies invite financial coaches to teach the members the value of saving. Luckily for me, I was on the right company …a company that teaches about personal finance and at the same time distributes financial instruments…

            1. I’m glad that we are in the right company Mr. Edmund Lao. 🙂

  3. wilms tumor says:

    so let’s invite him to our group! pero ang rule pala is we invest only if we have extra money, It all starts with discipline. No matter how high his income is, if he doesn’t know how to save or handle his income, he will always be short of money, even if he earns P1 million a month, this will not be enough. Live within your means, pero mahirap ito ituro sa mga tao kung ang goal is all out support para mapagbigyan ang mga anak even if it’s beyond their means.

    1. Exactly. The way I see it, kailangan talagang mauna ang financial education above everything else. Madami din kase ang ayaw mapagiwanan pagdating sa mga uso at ayaw din masapawan ng kapitbahay kaya gagawin lahat para lang mabili ang gusto kahit hindi naman kailangan.

      1. Correct. And as I suggested before, there are now “automatic” ways to do it. Especially for those who find it hard to discipline themselves to save substantial portion of their earnings regularly.

        1. mAAM bURN..There are some things that goes beyond MONEY OR SAVING MONEY…We work day & night & sometimes we buy GOOD THINGS like cars coz we want to see d fruits of our labor…When i was much younger, I’ve been dreamin of buying a car irregardless of what it takes..I can not just always follow the protocols of saving like EMERGENCY FUND FOR A YEAR when IN MY MIND from d start , it is not achievable & realistic having a big family…There are times where you just have to close your eyes & buy the things that you really wanted to buy regardless whether you need it or you just want it..but rather you just want to give yourself a gift…that youve been craving for,,what if you will die tomorrow?, what will happen to the money you ve been saving all this time..wasted… Who will benefit it? When you die your kids or love ones might end up battling your money in court… I ask you know, of all the total earnings youve got/earned since you landed a job, did u at least spend one third of it to make yourself happy?Never!!! so whats the use of life? HAPPINESS IN LIFE FAR EXCEEDS BY JUST HAVING SAVED A LOT OF MONEY..yOU CANT BRING MONEY TO YOUR COFFFIN..

        2. “JOHNSON MACEREN’S OUT OF NOWHERE REACTION TO MR. BURNS’ MONEY SAVING ADVICE in a WEBSITE”

          MY REALITY CHECK IS THIS; There are some things that goes beyond MONEY OR SAVING MONEY per se…We work day & night, although I save some pennies but sometimes we just have to buy GOOD THINGS like cars coz we merely wanted to see d FRUITS OF OUR LABOR …When I was much younger, I’ve dreamt of buying a brand new guitar, aN 8-seater car or a 2-storey house regardless of what it takes..I can not just always follow the protocols of saving like building up an EMERGENCY FUND FOR A YEAR when in my mind from d very start , it is not really achievable & realistic having a big family to look upon…There are times wherein you just have to close your eyes & buy the things that you really wanted to buy regardless whether you need it or you just want it..but rather you just want to give yourself a gift… A GIFT that you’ve been craving for all your life…all this time..,,I ask you now, what if you will die tomorrow?, What will happen to the money you’ve been saving all this time..wasted?… Who will benefit from it? When you’ll die,God forbid, it may be possible your kids or your love ones might end up battling for your money in court… I ask you know now again, of all the total earnings you’ve got/earned since you landed your 1st job, did u at least spend one-third or one fourth of it to make yourself happy? Never!!! So whats the use of life? Whats the whole point.. BEING IDEALISTIC IS FAR CRY FROM BEING REALISTIC & TODAY-ISTIC….!!!! HAPPINESS IN LIFE FAR EXCEEDS BY JUST HAVING TO SAVE A LOT OF MONEY..YOU CAN NEVER BRING THAT BAGFUL OF MONEY WITH YOU IN YOUR COFFFIN..Until I receive you comments, I shall have my fingers tightly crossed..Shoud you need to comment , feel your heart, be realistic & be true to yourself…then comment…. 😉 🙂 😉

          1. you don’t have to deprive yourself. The group is advocating the basic 70-20-10 budgeting discipline. (1) Invest the 10% of your salary/income to God, (2) Save and invest 20% for your retirement and your children’s future, (3) Enjoy the 70% for the things that you need, things that you WANT, and the things that you’ve been dreaming to have. Is the 70% not enough?

            1. It is matter of contentment…
              As the Scripture says:
              Matthew 6:21
              For where your treasure is, there your heart will be also.
              and
              Proverbs 13:22
              A good man leaves an inheritance to his children’s children, but the sinner’s wealth is laid up for the righteous.

  4. Some simple yet need discipline financial formulas for our friend:
    1. Money In > Money Out
    2. Expenses = Income – Savings (this should take first)

    1. Thanks for these basic discipline formulas. Our readers will surely learn a lot from your recommendations. Cheers! 🙂

    2. Vital steps
      1. Increase Cash Flow (Money in>Money out
      2. Pay yourself first (Income- SAVINGS=Expenses
      3. Eliminate Debt and start financial planning. Ask for help of financial experts like Randell Tiongson,Efren Cruz, Alvin Tabanag

  5. Spell ‘reality check.’ I’m so thankful that I was able to read this. Because I’m on a serious plan of being financially free this year. No bluff, blunder or empty show. I will note every helpful comments/suggestions from this. God Bless! 🙂

  6. Spell ‘reality check.’ I’m so thankful that I was able to read this. Because I’m on a serious plan of being financially free this year. No bluff, blunder or empty show. I will note every helpful comment/suggestion from this. God Bless! 🙂

    1. Thanks for visiting my blog, Kristina. Good luck on your journey towards financial freedom. God bless you too! 🙂

  7. From Kiyosaki’s Cash Flow Quadrant, there is always a quadrant for investor. Even if business is doing well, one should still re-invest in other instruments for the purpose of diversification. A single source of income is not enough. If something wrong happens to the business, there is still cash that will come from investments

  8. Hindi lang ikaw sir burn ang me kaibigan na ganun…. madami ang ganyan ang mindset…keep inspiring…

  9. Argelyn salazar says:

    Karamihan kasi whose engage in MLM, na mas marami silang marerecruit if they have a lavish lifestyle. Para maniniwala yung mga tao na they are earning so much that they can afford anything they want. Its part of their strategies to convince new recruits.

  10. rami canano says:

    I am learning a lot from you guys.I myself had filled-up a col form and received response from them.I just need to provide id and billing statement and hopefully I’ll be soon investing too.Thank you Mr. Burn Gutierez for the seminar that you’ve provided to our group IBCWA Dammam chapter.Mabuhay po kayo na nagpapamulat ng kahalagahan ng pag i invest sa mga kapwa kong OFW’s.

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