by: Art Ladaga

A few days ago, I came across an article on the Philippine Daily Inquirer’s website. It was about a high school student’s reflection on his four day experience as a bagger at SM. This was part of the school’s immersion program for its students. At first, the student was highly exuberant about becoming a bagger. He was very eager to learn the ropes of work. As the hours and days passed, however, it became dragging and tiresome.

Despite the difficulties he experienced, the student shared highly valuable insights from his immersion. He first learned the pleasures and toils of working. Another thing was the importance of being relational, especially to those who may not have much in life. Finally, he learned to be grateful for the things he has, especially the simplest ones.

Many online readers definitely appreciated the student’s insights in his article. And yet, there were also those who found his insights shallow and elitist. According to them, four days of immersion are not enough to get a big picture of the real world. Some people even complained that immersion experiences serve to feed the egos of rich kids. If you are to look at the comments section of the website, it’s literally a battlefield with barrages of views.

It has been three years since I entered the labor force. It has not been an easy ride, having to do things in order to earn. As I pondered on the student’s article, I cannot help but appreciate his insights, no matter how simplistic or shallow it may be for some people. Four days may not be enough to give a complete portrait of the real world, but his insights remind adults of an important reality that they take for granted: the reality of ACTIVE AND PASSIVE INCOME!

Active and passive incomes are simple enough to understand. Active income is earned when one is working. In his article, the student recalled chatting with his colleagues about their personal lives. Most of them were from the province. They came to Metro Manila to earn a living. Although they were lucky to land a job at SM, they are highly fearful of the future. SM is known to be one of the major contractual employers in the country. After six months of working, most people find themselves out of work again. Thus, they need to find another job elsewhere.

Now, what does that imply? Simple: NO WORK, NO PAY! Even if some people land a high-paying job, there’s no guarantee that they will continue working. There will always be uncontrollable circumstances that can stop any one’s capacity to work (ex. mandatory retirement, job dismissal). When one cannot work, one cannot earn. Most people choose to live on active income without fully understanding the implications when it’s impossible to obtain it anymore. As a result, they cannot sustain their lifestyle and provide a decent living for their families.

Passive income, on the other hand, is earned when money is working. It serves as the partner and alternative to active income. When one is still working, it’s imperative that he/she is able to save and earn from his savings as well. This way, his/her savings generate more money. Once somebody cannot work anymore, passive income replaces the role of active income in sustaining one’s lifestyle. In effect, one can still live comfortably even if one is not working anymore. Sadly, most adults only realize the importance of passive income during the latter moments of their lives.

Mr. Francisco Colayco strongly emphasizes both active and passive income, while one is still capable of working. He wittingly calls both Pisobilities– the power of one’s peso to generate income. Although they are different, they are two faces of the same coin. The key to financial independence and wealth is to UTILIZE BOTH! Whether one is a regular employee, a company executive or even an entrepreneur, the obligation to grow wealth remains the same. Not only can one be able to sustain his/her lifestyle, but also be able to share more because one has the means to do so.

Indeed, the student in the article still has a lot to learn about the real world. And yet, no one has the right to dismiss his insights about the reality of toiling for money. It is a reality that many adults continuously face and deny. Such an insight is highly valuable, especially for someone so young. What I can only hope is that when he (and others like him) is finally ready to step onto the world of the working adult- either as a company employee or business owner- he will continue to cherish his experience. May it empower him to utilize his Pisobilities not only for himself or his family, but for the downtrodden and abused in society.

Source:

Ongchoco, D. K. (2013). My stint as an SM grocery bagger. Retrieved from Lifestyle Inquirer: http://lifestyle.inquirer.net/131783/my-stint-as-an-sm-grocery-bagger

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*Art Ladaga is the current Programs Development Officer of Colayco Foundation for Education.