Commandment no. 3: Stop Spending on Things that Decline in Value

Francisco Colayco is a well-known financial adviser in the Philippines.  Here's his commandment no. 3 of 10 about personal finance:  Stop Spending on Things that Decline in Value.

Invest on Things that Earn for you! Every asset should be an earning asset!
Sometimes we tend to splurge our earnings on things like cars which depreciate in value over the years or buy land which is of no use to us at the moment.  This should not be.  Although land may increase in value over the years, idle land, is actually an expense for you because of the taxes that you will be paying every year.  And If you really need a car, just go for something within your means. 

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