Of Goose and Gold (Part 1)

Many of you may have heard of the story of the goose that lays the golden eggs. The farmer thought that if he killed the goose, he would be able to get all the golden eggs inside. So the farmer did kill the goose, and thus, he had no more golden eggs. This children’s story reminds all of its readers not to be greedy, like the farmer. However, this begs the question, “Is there really a goose that lays the golden egg?”

Before the goose can lay its eggs, the goose would have to be fed, tended and even vaccinated. Otherwise, it may not lay eggs because it is unhealthy. Similarly, if one thinks of having an investment portfolio or a business, one has to actively take care of it, or entrust it to competent managers, for it to earn money. Thus, it is actually possible to have a goose that lays golden eggs. One of the first steps of owning this magical goose is through developing a savings mentality.

Many people consider savings as what is leftover, in Tagalog, “tira”. In fact, many people complain about not having enough for daily needs, leaving no room for savings. However, the reality of savings opens up the possibility of passive income. The goose that lays the golden eggs of passive income comes from the discipline and hard work of saving.

The attitude towards savings should not be that of leftovers. Rather, the act of saving should be viewed as an initial payment to yourself. Savings should be the first deduction from active income. For instance, if your monthly take home pay is Php12,000, saving Php1,000 a month would yield Php12,000 a year. Moreover, since there are only 12 months a year, you can develop the discipline to live within the remaining Php11,000, and aim to save at least half of the thirteenth month pay.

The goal will be to build liquidity, which is the next step to help attain the goose that lays the golden eggs.