BASKETBALL FINANCE: Personal Fouls

"These are my new shoes.  They're good shoes.  They won't make you rich like me, they won't make you rebound like me, they definitely won't make you handsome like me.  They'll only make you have shoes like me.  That's it."  ~From a Charles Barkley commercial for basketball shoes, 1993

Wikipedia defines a "personal foul" a breach of the rules that concerns illegal personal contact with an opponent. It is the most common type of foul in basketball.  Samples of personal fouls include pushing, holding, illegal use of hands, hand checking, and illegal use of elbows.  May I add some Tagalog terms such as "nambalya", "nanuntok", "naniko" at "nangurot sa singit" (like what happened to Asi Taulava during the FIBA Asian games.  =)

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Now, I'd like to point out some "personal fouls" when it comes to one's finances.  Believe me, I have committed these mistakes too so I know what were the consequences.  I just want to share these with the hope of people, especially my friends and family, to avoid the same mistakes.

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"KASKASPINOY"

"Kaskas" is a Tagalog slang for using your credit cards.  This is different from the CashCashPinoy (www.cashcashpinoy.com/) where you find the best deals in the Internet, although they make you "kaskas" your credit card as well.    

Having a credit card and using it is not bad per se.  The "personal foul" is when:

• You "kaskas" your credit card and you don't have the cash to pay for it come due date.  Basta kaskas lang ng kaskas.  Bahala na, may dadating naman ako na pera/suweldo next month! 
• You are not paying the full outstanding balance of your credit card bill.  
• When you can't even pay your minimum amount due.  This can be considered a "flagrant" foul already.
• Another "flagrant" foul is getting cash advance from your credit card, kase you need money or wala kang pambayad sa iba mong credit card.

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"SM"

 I like going to SM.  My kids at a young age (ages 4 and 2) love to go to SM.  Sa London may Oxford Street at Brent Cross mall pero wala pa ring sinabi sa SM.  Again, walang masama sa pagpunta sa SM.  What I can consider "personal" fouls are when:

• Na-addict ka na sa SM.  Every week or every payday nasa SM ka at gumagastos ka kahit kapos o wala ka nang pera o baon ka na sa utang.  You have the attitude of "Di bale, di pa naman puno ang "credit card" ko."
• When SM to you is synonymous to always Spending Money, Shopping Monthly but not Saving Monthly, and Sakanalang Magipon.

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"ATM"

We are happy with our banks that have a wide network of branches and Automated Teller Machines.  Our "customer friendly" banks make it convenient for us to easily gain access and withdraw money anytime and anywhere we want.  

Fair enough, but...you see our "mindset" when we see ATMs is to withdraw.  So the "personal foul" there is every payday, the first thing we do is look for the nearest ATM machine, check kung pumasok na ang suweldo and then withdraw AGAD dahil:  a) may babayaran na bills o utang;  b) maggrocery; c) may bibilhin na mga consumer goods (cellphones, clothes, etc.); d) may gimmick at sine/inuman mamaya; or e) ALL OF THE ABOVE


Financial planners are suggesting us to have an Automatic "Tago" Mindset.  "Tago" is a Tagalog word meaning to hide or in financial terms, to save.  Mahirap ito lalo na kung ang laging nating dahilan ay kulang pa ang suweldo natin.  Ok, I understand!  Maybe we can do it one small step at a time.  Maybe we can start saving lets say 1% or 5% of your suweldo every month.  Pag medyo may disiplina na sa paggastos at sa pagbudget, puwede natin taasan ng 10%, 15%,  20% o hanggang 30%.  Ang mahalaga, maging "habit" na natin ang magtago at magipon muna bago gumastos kada suweldo.
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In basketball, a player is allowed to have six (6) "personal fouls" then he's out of the game.  In personal finance, its OK to commit "personal fouls"  but we need to learn from them in order not to do the same mistakes again.  A "foul-out" in personal finance could mean loss of properties, loss of family or even loss of "self-worth".


Hope this helps,


Ge


Gerald Cantor is a Registered Financial Planner graduate and a Financial Consultant of Pru Life UK.  He is also a Certified Public Accountant and a Certified Internal Auditor.  Ge is proud to be an ex-OFW, a "career-shifter", a baller, a newby entrepreneur and most importantly, a "proud" dad of Gia (4yo) and Clarie (2yo).