(Article taken from: http://www.savingstips.com.ph/what-does-enjoy-truly-mean/)
It’s amazing to see how people would spend so much time and money on entertainment. This is probably why entertainers are paid oh so well. Just count the many millionaires there are among actors, singers, comedians, magicians, basketball players, software game developers, and people who empower others through social media.
Life is there to enjoy. But there is a price. Going to the movies costs a small fortune from the transportation to get to the movie house up to the tickets and popcorn. Dining out weekly can burn a hole in your pocket. Buying a car, building a house, sending children to school will all cost more than an arm and a leg.
Parents are to a certain extent entertainers. They make sure that their family enjoys the most out of life. But they have to plan well because entertaining does have cost. Parents have to make sure that given their goals, they are able to generate enough revenues from their portfolio of assets and pay off the cost of not only operating such assets but also the cost of acquiring the same assets. This is called total portfolio management (TPM).
Here are just a few tips on TPM:
- The more earning assets there are, the easier it would be to produce the necessary revenues to fund the household’s operations and growth.
- Perhaps the largest part of assets is human capital or the present value of all the future earnings of the breadwinners of the household. Valuing this human capital can be done through the help of financial planners.
- The better use for debt is to fund the acquisition and operation of earning assets. While debt can be used for financing temporary cash shortages especially for emergencies, such emergencies must be real, few and far between.
- The lower the cost of debt, the more efficient household operations will be.
- Debt has to be paid according to a schedule and at a certain interest rate. An alternative is to use the household’s own capital.
- The household’s capital, while not having any scheduled repayment does have a cost, that of the required return on equity to afford growth of the household’s future discretionary and non-discretionary expenses. And this is where the enjoyment comes in.
If you study the etymology of the word enjoy, you will find that its origin is from two old French words: enjoir, which means to enjoy and enjoier, which means to give joy to. In turn, both old French words find their roots from the Latin gaudere, which means to rejoice. Rejoicing is when you relish the enjoyment of others. Now isn’t that what parents are for?
In the movie “Bucket List”, Morgan Freeman uttered these lines, “You know, the ancient Egyptians had a beautiful belief about death. When their souls got to the entrance to heaven, the guards asked two questions. Their answers determined whether they were able to enter or not. The first question was, ‘Have you found joy in your life?’ The second question was, ‘Has your life brought joy to others?”
So, has it?