With the recently concluded 2020/21 Olympics, several articles and online content popped up about previous Filipino Olympic medalists. The somber theme to it all was that they encountered financial difficulties after presumably having earned financial rewards for bringing glory to the Philippines, if today is an indicator.
The story is not so different from professional NBA players or those winning the lottery. There is a big financial windfall in their lives and they do not know what to do with it. Or, they know what to do with it – like buy a house, car, or the usual invest on the education of their children, but they do not know how to manage and grow it.
It does not help that Filipino culture puts social pressure on someone who becomes immediately wealthy to be generous and share it around. Celebrations are held left and right with the person taking the tab “since he is now rich”. Then, there is that strange social expectation, or should I say obligatory conduct, to share cash to everyone (“balato” in the local vernacular) and I mean, everyone – even to a random stranger. A few months or years later, that person is broke.
I’m reminded of a local celebrity in our province who won almost half a billion pesos in lottery and went around giving cash to everyone. He is now reportedly broke and separated with his wife.
There are many similar stories out there. Hopefully, our PH Olympians take heed and exercise the same amount of disciple when it comes to their finances. And, it starts with learning more about financial intelligence.
As what they have done for training, they should research and learn everything they can about money and how to make it grow. It includes learning a lot about taxes and how to legally minimize that tax consequences of running a business, buying and selling properties, and so on.
If their house is in financially order, they can contribute more to society with them guiding the next generation of PH Olympic medalists.