Do you work for money or do you make your money work for you?
This is a concept discussed early on by students of business. Every financially literate person knows the difference. Not everyone, however, does. {{more}}
But if the concept of putting money to work is enough to give a person a big headache, there are simpler concepts that may be studied. One such concept is not to spend money before it is earned.
Just last week, we were able to catch a glimpse of how some of our elected public officials in Dumaguete view money. Mayor Manuel Sagarbarria asked for money from the City Council to buy two reconditioned heavy equipment – a bulldozer and a backhoe – for the purpose of rechanelling the Banica River in preparation for the rains. The need is immediate, considering that the rainy season has already arrived.
The Council initially thumbed down the Mayor’s request. Most of those who voted against the measure said they did not want the City to buy reconditioned units but they wanted brand new ones. In the absence of brand new units, they suggested that the City instead content itself with renting its equipment.
This reasoning may have gotten them some pogi points with voters but this clearly wasn’t carefully thought about. First of all, there is no money available to buy brand new units. Secondly, the cost of renting heavy equipment for several months would be equivalent or more than the price of the said equipment.
The choices are actually simple. For as long everyone is agreed on the need to buy the heavy equipment, there should be no debate on what type of equipment to buy. Unless, of course, there are other reasons that are better left unsaid.
Finally, the Councilors came up with a common position on this matter and decided to support the Mayor’s request to buy the reconditioned equipment. We laud them for their cooperation. Surely, when the next flood comes around, all the survivors (i.e., those who stand to benefit from the purchase of this heavy equipment) will remember to vote for you again.
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