Here Are the Financial Foes That Nearly Led Us to Ruin
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Chapter 1: A Family's Struggle
The family enterprise my father built over the years was something I had envisioned taking over until it ultimately succumbed to bankruptcy. My dad dedicated over ten years to working as a Finance Controller in California. In 1985, he faced a crucial decision: return to our homeland, the Philippines, and explore a new venture in business.
He cautiously entered the world of entrepreneurship by starting in the trucking industry. Much like a politician weighing a run for office, my father strategically pooled resources, purchased one truck, and delegated its management to his sister back in the Philippines. This initial step was intended to test whether the business concept could meet our future needs.
After validating this concept, the call to return became clear. United as a family, we embarked on a journey back home, fueled by the promise of new beginnings and validated aspirations.
Chapter 2: The Rise and Fall
The trucking business didn’t just make small strides; it rapidly expanded. My father began acquiring cars, real estate, and even luxurious jewelry. However, as is often the case in life, the high times didn’t last. I witnessed firsthand as the business began to slow down significantly.
The trouble began when our primary client was affected by the Asian financial crisis—a devastating blow. Subsequently, the government intervened, mandating the liquidation of the business by 2000. This setback impacted more than just the business; my father’s acquisitions, like fancy cars and expensive jewelry, gradually disappeared as if they were never there.
It felt like watching candies vanish from a bowl—gone in an instant. Eventually, my father had no choice but to declare bankruptcy, feeling as if life was relentlessly throwing lemons at us.
The silver lining? If you’re pursuing financial independence, you can learn from my father’s experiences and avoid the pitfalls he encountered. Whether you’re launching a new venture or nurturing a side hustle, these insights can help you sidestep the burdens of financial strain. Prepare yourself; this journey doesn’t have to be tumultuous—you have the insights to navigate effectively.
Chapter 3: The Investment Pitfalls
One of the crucial lessons revolves around investments. As my dad's business thrived, his enthusiasm led him to purchase numerous properties without maintaining oversight. His ambition to create a real estate empire—comprising houses, condos, and townhouses—backfired when he lost track of these properties.
One lot, in particular, became home to squatters. These abandoned treasures were left unprotected, and the squatters cleverly engaged the local government, acquiring the land at a price far below its market value. This scenario illustrates the importance of monitoring investments closely; neglect can lead to unforeseen losses.
Chapter 4: The Costly Kindness
In our household, individuals often came seeking financial assistance. My father, being the generous person he is, lent money to those in need. However, many of these loans went unpaid. It was as if these borrowers had developed a case of selective memory, conveniently forgetting their obligations.
When approached for a loan, it’s wise to consider whether you’re truly helping someone or simply making a charitable contribution.
Chapter 5: Trusting the Wrong People
Consider this: our business operated a large fleet of trucks, necessitating drivers and helpers to keep operations running smoothly. However, rumors began to circulate about some drivers engaging in questionable practices during their routes. They were reportedly selling off fuel to third parties who already had their tanks filled.
Can you believe it? They turned a straightforward operation into an underground scheme. This experience highlights the necessity of oversight in business; implementing systems to monitor activities can help prevent theft.
In the end, when it comes to dealing with temptation, the best approach is to eliminate it from your workplace entirely. Create an environment where the opportunity for unethical behavior doesn’t exist.