To save or spend

Once upon a time there was a basketball team that won the championship in a commercial league. After all the celebration, the members of the team now had to decide what to do with their cash prize of half a million pesos. As they huddled in their dug out, all sorts of suggestions and ideas popped out from the young players as well as the members of the coaching staff.

The players were well ahead of the adult staff and had actually computed exactly how much each member of the team could get which was roughly P16,000. The head coach felt that he should not share in the pot, volunteered to donate his share. The players were thrilled because this meant that they would have P500 to P1,000 more plus the possibility that the rest of the coaching staff would probably follow the example of the head coach.

Slowly and perhaps reluctantly the rest of the coaching staff “magnanimously” donated their share until one stood up and said, “I’m sorry but my family is hard-up and unlike the other coaches, I need every cent I can earn or get my hands on”. This realization had other players rethinking the idea of splitting the cash and asking if there was a better way of using the money.

Thinking along the lines of team building, the head Coach suggested going on a trip to Boracay so they could all relax and have a good time just before the next round of competition comes along. Instead of cheers, the team responded with cold disinterest. It was clear that after they knew approximately how much their share might be, the team members had already spent the money in their minds.

The more socially mature players knew exactly how much money they would send home for the tuition fees of their siblings, while the other players already had a mental list of toys and trinkets they’ve been meaning to buy. On the other hand, the rest of the coaching staff were simply concerned about letting the team blow the money away with out getting any long term benefit from their prize and their efforts.

Stuck in place, the head coach asked around and was advised to put everyone’s share in a mandatory time deposit or financial placement. This way the players could start building up personal funds and knowledge about wealth management. Again there were protests from people who sympathized with the players wanting to use their share for personal or family use.

This story is actually a true story and as I write it down, I’m sure many of you are familiar with the situations and choices the characters faced. A mother would be motivated to think that the money should go back to “family”, a coach thinks in terms of “team”, the mature individual recognizes the privilege of being in a team and wants to share some of it with his siblings, a father and husband has to set aside being an example in order to provide for his “immediate” family and understandably, kids who’ve never had much and have to work so hard are motivated to reward themselves because the world won’t.

Ironically, it takes an outsider to suggest something far removed from the now. When you think of it, the team has all been about hard work, athletics and discipline. Their real reward was becoming champions and getting the title. The cash or the money was just an accessory made to increase the level of competition.

If anything the cash prize should also be treated with the same mind-set of discipline and looking towards a future goal instead of an instant reward. I am no cosmic kill joy, or anti-family so I would agree that part of the money should be used as reward and shared prize with others, just remember that often times, when you send money to help, those who were originally responsible often takes a break and splurges on themselves.

In the end and in the long term people should always have something to show for their efforts. But buying a new phone, an Ipad is not an investment unless you’re going to the “pa-load” business or Internet related service. Electronics, jewelry and the likes are and always will be accessories that greatly diminish in value. In the end, part or all of the money should simply be a tool or an instrument just like a basketball. The more you score with it the better your stats and your stature.

Windfalls and prize money should be the same. The more you make and save the better you become at the game of providing for your future and those around you.