8. Financial Security

Joshua and Ben met George at the designated time in the morning in the lounge of the Galapagos Sanctuary.

Ben was attracted to the flamingo waitress that served them a grape punch.

She was so elegant, young, and beautiful.

George chuckles at Ben and jokingly asked Joshua whether he knows the benefit of being young and the curse of growing old.

Joshua answered that the young ones have time at their site and are both healthy and eager to live.

George nodded and looked at Ben and ponder him on what is the curse of being old.

Ben answered it would be a curse if you are old, poor and sick, and immobile.

George answered exactly and continued "However Money can solve a lot of your problems when you are old. Therefore, youth is only vanity of vanity and you should have proper money management since young"

Ben interrupted "Before we talk about money management, we need to talk about what is the definition of money."

Joshua answered, "Money is a medium of exchange and storage value for future purchasing power."

George continued "Anyone that has excess money will always be an investor."

Ben continued that after knowing the definition of money we should know what financial security is.

Joshua replied, "Financial security means your active and passive income monthly is more than your monthly expenditure so that you can maintain your status quo lifestyle."

George explained further that most of his workers including the beautiful flamingoes waitress in the Rat race, depend on their active income as employees to cover their monthly expenditures.

Joshua added, "Monthly Expenditure is what we spend monthly whether it is fixed expenditure such as installment or variable expenditure from impulsive buying or emergency expenditure such as house repair, hospitalization or our automobile repair and service."

George added, "Yes, every goods and service we consume need money."

Ben interrupted "Active income is the income or money you obtain where you trade or sacrifice your time and leisure for other people's financial goals, while, Passive income includes dividend income and portfolio income."

George continues, "We are temporarily out of the rat race when our active and passive income is more than our monthly expenditure. Therefore, we can settle our expenditure promptly and avoid being insolvents."

Ben suggested that those who cannot balance their expenditure to income should either reduce the expenditure or get a part-time job to supplement their full-time income.

George and Joshua nodded in unison with a laugh.

Let us leave all three of them enjoying their drink at the Galapagos Lounge and wonder how we can be financially secure.

Metamorphosis: Money can be our master or slave depending on our level of financial security.