Hidden-nomics (4): Cleopatra

So many legends and anecdotes have enveloped the historical person that is Queen Cleopatra, and I think that what fascinates most of us are the ones that refer to her great beauty and charm– qualities that were able to get the better of not one but TWO mighty conquerors, Julius Caesar and Mark Antony.

Just how beautiful was this woman? Her adversaries have referred to the leader as a genuine femme fatale who used seduction as a means of getting her way. This derogatory title, coupled with the Hollywood movies that cast beautiful women to portray her, made it very easy to make people believe that she was indeed goddess-like in appearance.

However, recent evidence shows that she was not as physically attractive as people thought. Images of the late queen imprinted on coins or reliefs show a woman with a prominent nose and a protruding chin. While one could argue that beauty standards might have changed overtime and Cleopatra could have been truly considered beauteous back then, is physical appearance enough to seduce two of the smartest, most strategizing and cunning men of her time?

Some of the more “practical-minded” readers would say to themselves that sexual prowess could’ve been the key. But bear in mind that she was with Julius Ceasar for four years and with Mark Antony for a decade… sexual satisfaction alone wouldn’t have sustained such long-lasting relationships. (Ask around, if you must!)

So, for the sake of fun, imagine for a minute or two that the ancient ruler was more plain-looking than what we have been told… What then could she possibly have possessed to catch the interest of these two powerful men? to make great warriors bend their knees before her?

Could it be the same thing that made her the leader that we know she was?  the thing that made her gain so many enemies who tried to destroy her reputation by calling her of a sl*t?

She must have been a vessel filled with something truly valuable, but at the same time intangible! While that would be what historians and aficionados call “charm”, we economists label as “human capital”. In Cleopatra’s case, a magnificent and high-yielding one.

The World Economic Forum’s Human Capital Report defines it as:

the skills and capacities that reside in people and that are put to productive use.  This resource must be invested in and leveraged efficiently in order for it to generate returns.

First of all, when it comes to the initial investment, think about it: as a princess, her health was in the hands of the best doctors, she was well-fed, fiercely protected from the smallest mosquito to other lurking dangers (be it natural or man-made), she was exquisitely clothed and guarded from cold or heat, she was sheltered in palaces and this humble servant would dare bet that she was loved and spoiled by the people who surrounded her. Thus, the physical wellbeing she gained from these attentions have made her strong, less sickly, and have allowed her brain to develop well enough to absorb the many lessons she was taught.

As one would expect, her formation and training was certainly top-level as she was well-educated in maths and sciences. She was also well-versed in politics, spoke several languages and had access to the works of the greatest thinkers, so most probably she was also well-read. All of these experiences in turn must have worked their way into her mind, encouraging her creativity.

Accordingly, when it comes to the returns on these investments,  BBC History mentions that “she was a highly intelligent woman and an astute politician, who brought prosperity and peace to a country that was bankrupt and split by civil war.” These are impressive returns for a thriving society!

Lastly, as human capital is also comprised of personality attributes, it must be mentioned that many Egyptologists agree on her having been a witty woman with a good sense of humor. Add to that the strong personality of anybody belonging to her social and economic class and you have the perfect ingredients for a woman who could easily disarm you after 2 minutes of meeting her. I rest my case.

Cleopatra might have or might not have looked like Angelina Jolie, but as looks are subjective (aside from the fact that they fade), we could be sure that she offered more than just a pretty face.

As for being a man-eating, seducing and devious tramp? nothing but venomous words from someone envious. Perhaps a man.

 

 

Advertisements

Adulting and Money Management 2.1: The Importance of Research

Author’s note: Please excuse last week’s absence of post. I was not able to better organize my schedule between researching about this article, managing side projects and settling in to our new home. Thank you for understanding. I do hope that the practicality of this post outweighs the lack of publishing several days ago.

This post complements the previous one (Adulting and Money Management 2: “Hooray, I have money! now what?”) that encourages channeling one’s savings into investment.

Resultado de imagen de research

Image courtesy of: http://www.vicsrc.org.au/

Introduction: “Adulting” and Research

The term “adulting” was coined to describe a group of people transitioning from youths to adults, associating the latter with a sense of responsibility, commitment, maturity and trustworthiness.

The Urban Dictionary online defines adulting (v) as:

“To do grown up things and hold responsibilities such as, a 9-5 job, a mortgage/rent, a car payment, or anything else that makes one think of grown ups.”

Research (n) has several analogous definitions, but the one I like most is from Dictionary.com:

“diligent and systematic inquiry or investigation into a subject in order to discover or revise facts, theories, applications, etc.”

I identified adulting with research because being responsible usually entails being aware the effect of certain factors, or what elements would be affected once a decision is made. It requires to be informed of the risks, costs and benefits of each resolution or judgement. As you might have guessed, the best way to achieve this is to gather as much information as possible; and if that can be done in a systematic and efficient manner, all the better.

I never really gave much thought about researching until I bumped my thick head to wall after wall of reality. After the 256th bump, I had to admit that INFORMATION IS VITAL (some say it’s power, others say it’s equivalent to money…); but to be more precise, ACCESSING THE RIGHT INFORMATION MARKS THE DIFFERENCE. Unfortunately, there is no short cut to knowing what the right information exactly is. Even if helpful peers point it out, what’s “right” for them might not be right for you. So really, the only way to do this correctly is to start making inquiries yourself.

Nobody ever told me about this- not even my teachers in college. You’d think that people in charge of molding future economically-oriented minds would consider relaying this message…

(Later on when I reviewed some of my notes, I realized how this message was indeed passed on in the form of riddles.)

Research related to investing

Anybody who wishes to get the most out of what he has to offer will not hesitate to gather the necessary data to choose the best option. They  will not stop at believing hearsay, although they will certainly consider that type of information.

Still, there are others who are too trusting, too optimistic, or simply too lazy. Just like me, they won’t be encouraged to be more diligent in researching until they’ve paid the price… because there are several steep prices for overlooking the process of research, and more so when it comes to (first-time) investing. In my case, these are:

  1. Money-wise: (the price to pay will be) the very amount of capital invested
  2. Emotionally: pride that got too bruised, discouraging any discussion about this experience with people who might actually help
  3. Psychologically: being  too traumatized to “trust” any financially-profitable opportunity for quite some time
  4. Opportunity cost-wise: having less less money, lower spirits and inferior resolve to invest once again. This could likely make one miss the chance to make money grow

What to research? How to research?

Resultado de imagen de research

Image courtesy of: http://innovationexcellence.com/

Performing an investigative task could be exhausting, especially when not used to it. Although I dare say that having one’s future at stake is surely an excellent incentive to do so.

From my point of view, I see two main aspects of research: the theoretical side (or the understanding) and the empirical side (the practical, “realistic” side). They require a lot of time and effort to be taken on, so you could be tempted to just focus your energy on one of them. But the truth is, both are too important for any of them to be ignored.

Suppose you’ve already decided how much you want to set aside to make your money grow; also suppose that you’re already sure of which type of investment you want to make; let’s also say that you’re currently convinced by a financial manager about the product/s he offers and that you’re very happy with what you’ve heard.

That’s fantastic because it means you won’t have to search for much more. Be that as it may, IT IS NOT THE SAME as not having to research anymore.

Theoretical research

In our proposed scenario, the main question to ask would be: What is the general understanding regarding the investment vehicle of your choice?

Even if you’re already content and convinced about the product that was offered to you, still it’s a good habit to read and re-read the brochure or any related document.

(Depending on the country where they operate) Most financial management companies are obliged to distribute a written communication, stating the product’s fundamental information to potential investors. This is very important because usually this is where the fine print lies.

To make a long story short: you might be interested to find out about the profitability of your venture, the different kinds of fees and commissions you’d be subjected to, how much tax you’d have to pay once you withdraw your capital earnings, what kinds of risks your investment is exposed to, etc… that is to say: by how much would your money potentially grow? How much would necessarily be deducted to your money once you’ve invested it? Is there any way to prevent it, or at least lessen the deductions to your future earnings? 

The second set of questions I suggest to be asked will surely empower those who are afraid of investing what savings they have acquired. It refers to one’s legal rights and obligations: Is there something in your country’s Constitution that would back you up, should you get into trouble (in the case of scams or bankruptcy)? What are your rights (ie: to invest and make your money grow) and obligations (ie: to pay taxes) according to the law? As for the financial services company, what are their rights (ie: to profit from rendering a service) and obligations (ie: transparency, honesty)?

In anything that you do, KNOW YOUR RIGHTS. ALWAYS KNOW YOUR RIGHTS. Consult a lawyer if you have to.

Empirical research

The most effective way to conduct empirical research would be to actually invest the money in your vehicle of choice. Just like a scientist observing a laboratory rat, you could closely monitor your investment with the help of your adviser.

Well, too bad for us- we can’t all have the luxury of “gambling” with our life savings. So for this type of research, I would mainly ask: What has been the experience of other (usually, older) people in this field?

Even if you’re already content and convinced about the product that was offered to you, talking to those who have already invested in the same product or a similar one could help. Most financial managers will hesitate to recount the negative experiences of some of their clients. So consider this: if you ask different kinds of investors (young, old, experts, newbies), they could only be too willing to warn you about not repeating the same mistakes they made. They may not share the secrets of their trade, but you could surely get some useful tips.

Resultado de imagen de group talking

Image courtesy of: http://www.easyfreeclipart.com/

Another important question to ask would be: What are other alternatives available in the market?

This question will most probably be answered by your fellow investors. But it’s always better to do your very own research. Remember that you want the best value for your hard-earned money. It’s not being greedy, it’s being wise. You’re not trying to outsmart anyone, you’re trying to educate yourself so you won’t be fooled.

Try informing yourself of the one or two better alternatives mentioned by other investors. Visit a financial service company’s office and ask all the questions you might have.

Benefits of research

Having done your research does not in any way reduce the risk of losing part (or all!) of your investment. It wouldn’t help you evade taxes either; but the results of your research will allow you to make decisions with more and better information. As a matter of fact, in the case where your decision turned out to be unfavorable, your research would’ve already provided you with enough knowledge that would orient you towards the most fitting solution.

Some might be wary of spending time to do research, even if it just meant comparing the profitability of different investment tools. Others might even think that they would do better investing their money already, instead of spending time talking to fellow investors. As respectable as this stance is, it is not advisable. Especially not to first time investors.

Undoubtedly, as you acquire more knowledge and experience about investment, you would spend less time and energy doing the basic research. By then, you would be informing yourself of different factors concerning other opportunities. You would know better who to talk to about one option or another. The task itself will not disappear, it will just take on a different turn.

Conclusions

People in the phase of “adulting” are automatically more prudent of their resources. Especially when it comes to their hard-earned savings. After all, that is the very essence of adulting: taking on more responsibilities and being more consistent with the decisions that were made.

One way to make adulting go a bit smoother is by taking time to research before going after one option or the other.

Whenever there is money involved, there is higher incentive to gather the right information. This becomes more evident when, along with the chance to make money grow, there is also a risk to lose part or all of it.

In general, there are two important aspects of research: the theoretical and the empirical. Both are equally important because they complement each other. That is to say, one cannot only mainly rely on hearsay when making an investment decision. And articles that are written in books, journals or magazines do not always play out the way they are supposed to. So one’s best bet would be to do both.

For the theoretical aspect, it would be wise to consult the documentation available in any financial services company. It is also highly advisable to be aware of the legal obligations and rights of both the investor and the investment company before establishing a financial relationship.

As for the empirical aspect, potential investors (especially the first-timers) would do good to talk to other investors. The latter group may not share their secret formula for success but they could warn about common mistakes and how to look out for scams. Lastly, it wouldn’t hurt to know what are the different alternatives that could fit an investor’s profile (those that adapt well to his current situation and future needs).

Researching wouldn’t make the risks go away. It wouldn’t lower the fees and commissions to be paid. Additionally, it doesn’t only take time and effort: some would also say it will make them miss the chance to invest immediately, thus losing money in the process. This type of opinion is respectable, but in the long run it will always prove to be worthwhile to exercise patience and diligence. Most people realize this too late along the way.

-The End-

Resultado de imagen de adulting

Resultado de imagen de laughing emoji

Image courtesy of: https://mulpix.com/ and http://emojipedia.org/

Adulting and Money Management 2: “Hooray, I have money! now what?”

To read the first part of the Adulting and Money Management Series, click here.

Money management becomes tricky as we grow older. To prove my point, try to remember when you were younger and you used to be so determined and focused to save whatever money you had. It could be to buy “that shirt”, “that book”, “that pair of shoes”, or even just to “put it in the bank”.

Didn’t you use to scrimp on buying snacks at school? didn’t you keep those envelopes containing cash- from your godparents- so you wouldn’t be tempted to use it? didn’t you try to outsmart your parents, siblings, or other family members to cover some of your expenses so that you could have more money, faster?

By the time we enter into adulthood, we start to be distracted from goals such as saving money or even increasing our income… There are just so many nice things to buy, a lot of delicious new food to taste, and look at all those places where we could travel- am I right?

Imagen relacionada

Image courtesy of: http://www.jocelynrish.com/

I don’t have the capacity to address all the above-mentioned concerns. However today, in the name of “adulting”, allow me to shine a spotlight on investment as an alternative to increase the money you have saved. And as a possible choice for investment, this post will also include a short discussion about Mutual Funds.

The completion of this second part of the Adulting and Money Management Series would not be possible without the very dependable Mr. Arnel Martil. His professional aid/opinion/words/common sense/truthslaps have truly made this post not only satisfactory, but also very beneficial to the reader.

Thank you very much, Arnel for your help!

-*-

Colorfulifesite (C): Arnel, what’s the difference between saving and investing? Which would you say is more important between the two? For instance, let’s say that I just received an inheritance or a huge bonus. Which should be my priority?

Arnel (A): The big difference between savings and investments is time.

Savings is usually money you set aside for short-term goals.

One reason you might want to save now is so you have some money to invest later. Money deposited into a savings account is usually very safe but would only earn a small amount of money in return. Another great thing about a savings account is you can get your money out of the account whenever you want.

When you say saving, you are just putting your money in a bank or as a reserve. It’s as if you’re hiding it under your pillow. It is a “parking place” where the “principal” or the amount you’ve saved is safe; it provides money for short term goals as well as emergencies.

By investing, you allow your money to grow. 

It accumulates money for long-term goals. You could lose your principal, but you have the opportunity to earn more money.

When you invest, you set your money aside for future income, benefit or profit to meet long-term goals. When you invest your money, there is no guarantee that your money will grow or increase. The earnings or losses from investments are usually more than what you would make or lose in a savings account. Investors recognize that it usually takes a long time to earn the big bucks, so most of the time they are in it for the long haul.

C: What would you say is the NUMBER ONE enemy of the people who are currently saving money? What’s the most effective technique you’ve applied to make sure you or your family could save?

A: Inflation is one of the downsides if we rely only on saving. It is an increase in price that makes a “market baskets” of goods and services more expensive over time- a silent killer of your finances. (Note: inflation reduces the value of your money because with the same amount, it can purchase less goods and services than before.)

For us to beat inflation, we should invest in investment vehicles like bonds, stocks, mutual fund, UITF or Unit Investment Trust Fund* (see Glossary at the end of the article for more information on terms with asterisks), or real estate. As an adviser, we do not discourage saving money in a bank account because you can recover and use that money 24/7 in case of an emergency. But if you want something for long term, like if you are planning for future education or personal retirement, invest in a vehicle that allows your money to grow if done right… annual returns of 50% is possible.

Regarding saving techniques, it really depends on the person’s budget; it should be such that his lifestyle wouldn’t be compromised. 

C: The most typical advice is the 20-60-20 rule, where 20% of a person’s income should go to savings and investment, 60% on essential expenses and 20% on discretionary expenses a.k.a. wants, rather than needs. (For some insight on budgeting and saving, see Colorfulifesite Blog’s post on making ends meet, here and proving that you could save, here.)

A: Just remember that the bottom line is saving for your future.

C: Suppose I’m now ready to invest- will it make sense for me to borrow the money I would put in the investment vehicle of my choice?

A: As an adviser I would say, before you decide to invest, you should settle your debts first.

You must start paying off the ones with small interest, and little by little, proceed by paying loans with bigger interest. The reason for this is you might have difficulties if you prioritize the debts with bigger interest, because there’s a tendency it might be too much for you and it could lead to you not being able to continue paying.

Once the debt is settled, you can then start to save and invest.

C: In my opinion, borrowing money can be a useful tool for money management. But it can also spell disaster for anyone who misuses it. Under the context of making your money grow, I believe that it only makes sense to take a loan when:

You are 100% sure that you could pay it off, interest plus principal, without sacrificing neither your current lifestyle nor your future prospects. (More of this on this series’ next post!)

A: You can be financially independent at any income level, but one should develop a certain behavior and discipline when saving and not to spend too much. However big your monthly salary is, even at 100 thousand per month, if your mentality is all about spending and spending, the end result will be an impoverished you.

C: Now, I noticed that mutual funds have been “a thing” for quite some time. What can you tell us about it?

A: Mutual funds are pooled investments which everyone can participate in. In the Philippines, it could be with capital as little as Php 5,000.00 (Colorfulifesite advises for you to consult your bank or financial adviser for the minimum capital requirements in your country).

It is a good investment option because they do not require much effort and time compared to others (e.g stocks, one’s own business). A professional fund manager handles your mutual fund. All you need to do is put in the money. In a mutual fund, you will become an investor, part-owner or shareholder of blue chips- nationally recognized, well-established and financially sound companies- where a mutual fund company has invested in.

Where I work, or in any mutual fund, historically in 5 years’ time, investment has been seen to double.

That’s why, we advice to lock in 5 years if people want to invest in a mutual fund.

C: I guess the time has come for me to share my own investment experience. You see, I invested a little money that I had before. Just like in a mutual fund, I was asked to lock my capital for a minimum of 5 years. I could put in more money, but I couldn’t withdraw it until after that period. However, when time came for me to recover my investment, I simply got the capital back! I was told by my adviser that it was due to the financial crisis. Now, what was I supposed to do with that? Of course I was happy I got the whole of my capital back, that I didn’t lose any money. But what a waste! I could’ve invested it in another product and at least earn 5% from it.

A: Maybe the investment you did at that time had an insurance added-on.

There is a product called a VUL** or Variable Universal Life Insurance where, aside from saving for your future your principal earns interest and it offers protection. It’s a sort of 2 in 1 product: life insurance ***plus mutual fund.

It is also a good investment since the money you save will grow and accumulate. The advantage of investing in any VUL products is it offers insurance or life protection, so in case the family breadwinner or the income generator has suddenly run out of time, his remaining family members would not suffer.

May I ask which company you invested in? How come the result was only a break even after 5 years?

C: The truth is, I remember which company it was, but I don’t remember the conditions. I think the problem was, I didn’t take it too seriously at that time… (facepalm)

A: Before you choose any type of investment, you must first do a background check of the company: their historical performances, how many years have then been operating- is it at least 10 years or 20 years?- so you could avoid scams. There’s no investment where you could earn money speedily, like let’s say, double your money in 2-4 weeks. There is an investment principle where we are advised to apply the RULE of 72****.

C: What can you say about my experience? Or worse, what can you say to those who lost money in their investments? Undeniably, many people are afraid of investing, and are afraid of the term “finance”, due to the crisis that hit us…  

A: As an adviser, I would say that before entering any investment scheme like stocks, mutual fund or UITF, you should first build the foundation of your investment by securing a life insurance, because the return on the investment tools I’ve mentioned is not guaranteed… In the case where a person secures a life insurance, if something happens or let’s say he or she will be “taken out of the picture”, there’s assurance for the surviving family members or beneficiaries that they wouldn’t be burdened or worried about how to go on with their financial life.

Life insurance could also help pay loans and other liabilities. It could be used to fund obligations like college education, car loan, house or lot… at least there will be money to pay them off. If the insured breadwinner dies, at least there will be resources to supply his surviving family’s needs.

C: That is a very interesting concept you introduced there, Arnel. In fact, an article I read explained it like this: When you don’t have assets built up (as young people do in their early-work life), you are most vulnerable. In case of an emergency, your family will have nothing to fall back on. So a life insurance is a good way to provide financial protection to your family even in your absence.

In another article, I learned that one of the wealth-building strategies we didn’t know about is to incorporate the use of whole life insurance as a strong basis for a solid investment plan. In fact, Investopedia defines this just the way you explained it:

Whole life insurance is a contract with premiums that includes insurance and investment components. The insurance component pays a predetermined amount when the insured individual dies. The investment component builds an accumulated cash value the insured individual can borrow against or withdraw.

A: If your investment of choice includes an insurance feature, it’s hard to say that you end up “losing” or “earning less”. There’s a guaranteed face amount***** or insurance amount in case of death, plus you can avail of riders****** or additional benefits like critical illness, hospital expenses and disability benefits. You could benefit from it in the long run.

C: Going back to my mishap… Needless to say, my experience made me afraid to invest again. So I just keep my money in a bank. However, it does make sense to also invest some of it especially if I were to increase the value of my money.

What are my other options? I’ve thought about bonds and stock options. But the truth is I know nothing! What advice could you give me?

A: All investments involve taking risk. It’s important that when you go into any investment in stocks, bonds or mutual funds you have a full understanding that you could lose some or all of your money in any one investment. There is really risk in investment, and there’s no guarantee.

It is often said that the greater the risk, the greater the potential reward in investing, but taking on unnecessary risk is often avoidable. An investor’s best alternative to protect themselves against risk is by spreading their money among various investments, hoping that if one investment loses money, the other investments will make up for those losses. This strategy, called “diversification” which can be neatly summed up as, “Don’t put all your eggs in one basket.”

Once you’ve saved money for investing, consider carefully all your options and think about what diversification strategy makes sense for you.

Diversification can’t guarantee that your investments won’t suffer if the market drops. But it can improve the chances that you won’t lose money, or that if you do, it won’t be as much as if you weren’t diversified.

Just don’t put “all your eggs” in a bank because imagine if you have 2 million Philipine Pesos (Php) saved in a bank then all of a sudden, it gets bankrupt. Take note that the maximum loss that could be covered by banks in the Philippines is 5oo thousand pesos…

Or suppose that a depositor has millions of money in a bank during times of economic and financial uncertainties. Imagine if the bank discovered that the depositor died- accounts will automatically be frozen, no cash withdrawal could be done and to top it all, the money is subject for estate tax. 

I must say that it would be the main difference between investing in a bank or in a financial services company like where I work (he he): one advantage about investing in a financial services firm is that the client has the possibility to choose that all proceeds may be free from whithholding and estate taxes. Unlike in banks, where the gains an investor acquires are subject to those two taxes, aside from the “normal” ones the government would require.

This is not to discredit banks, but just to put things in perspective with your readers.

C: Let’s say I finally dare to invest in mutual funds. Should I also diversify according to my objectives? For instance, I want to save for a down payment to buy a house? Or I’m thinking of saving for my son’s college education? That’s already 2 objectives.

Won’t I end up paying more than I should, or in other words: won’t I end up earning less than I could? 

A: The answer depends on when you will need the money, your goals, and if you will be able to sleep at night if you purchase a risky investment where you could lose your principal.

For instance, if you are saving for retirement, and you have 35 years before you retire, you may want to consider riskier investment products, knowing that if you stick to only the “savings” products or to less risky investment products, your money will grow too slowly—or, given inflation and taxes, you may lose the purchasing power of your money. A frequent mistake people make is putting money they will not need for a very long time in investments that pay a low amount of interest.

On the other hand, if you are saving for a short-term goal, five years or less, you don’t want to choose risky investments, because when it’s time to sell, you may have to take a loss. Since investments often move up and down in value rapidly, you want to make sure that you can wait and sell at the best possible time.

Time is money.

As we would say in my company, “The best time to invest was yesterday, the next best time is today. And the worst time is tomorrow. Because sometimes tomorrow becomes never.”

-The End-

Mr. Martil is a financial adviser in a leading international financial services company. He is a loving husband and father to his family. Likewise, you were able to witness what a kind and reliable friend he is- generous enough to spend time with Colorfulifesite Blog and answer some of the very basic questions about investment and mutual funds.

Glossary:

*UITF- Unit Investment Trust Funds (UITFs) are ready-made investments that allow the pooling of funds from different investors with similar investment objectives. These funds are managed by professional fund managers and are invested in various financial instruments such as money market securities, bonds and equities, which are normally available to bigger investors only. (Source: http://www.bdo.com.ph)

**VUL-Variable universal life insurance (VUL) is a form of cash-value life insurancethat offers both a death benefit and an investment feature. (Source: http://www.investopedia.com)

It is a life insurance policy that combines the features of variable life insurance and universal life insurance. Where the former constitutes a fixed premium insurance policy that provides a return based on the income performance of an investment portfolio. While the latter combines the benefits of an adjustable premium, adjustable coverage term life insurance, and a savings account. (Source: http://www.businessdictionary.com)

***Life insurance- Insurance cover that serves two major purposes: (1) to substitute for the insured’s income if he or she dies, and (2) to qualify the insured for favorable tax treatment. The policy holders buy insurance cover from an insurance company, and pay specific periodic amounts (premiums) for the term (duration or life) of the policy. If the insured dies before the this term is completed, a guaranteed sum (the face amount of the policy) is paid to one or more named beneficiaries. If the insured survives the term then, depending on the type of the policy, he or she may receive the full or a part of the face amount of the policy. (Souce: http://www.businessdictionary.com)

****Rule of 72- The “rule of 72” is a simplified way to calculate how long an investment takes to double, given a fixed annual rate of interest. You divide 72 by the annual rate of return you receive on your investments, and that number is a rough estimate of years it takes to double your money. For example, $1 invested at 10% takes 7.2 years (72 divided by 10) to turn into $2. (Source: http://www.usatoday.com)

*****Face amount- Sum of money for which an insurance cover is obtained, usually shown on the top sheet (face) of the policy. In life insurance, face amount is the sum paid on the policy’s maturity date, on the death of the insured, or (if the policy terms permit) on his or her total disability. (Source: http://www.businessdictionary.com)

******Riders- Additional clause, document, or slip of paper that adds, alters, amends, or removes the provisions of an associated or attached agreement or contract (such as an insurance policy) or a negotiable instrument. (Source: ww.businessdictionary.com)

Sources:

  1. Investopedia
  2. Business Dictionary
  3. “How Do You Make Money from UITF Investing?”, by Fitz, Ready to Be Rich Blogsite, available at: https://fitzvillafuerte.com/how-do-you-make-money-from-uitf-investing.html
  4. Unit Investment Trust Funds, available at BDO website: https://www.bdo.com.ph/personal/trust-and-investments/unit-investment-trust-funds
  5. “Doubling Your Money: The Rule of 72”, by Wes Moss, Advice IQ, USA Today, available at: http://www.usatoday.com/story/money/personalfinance/2015/04/25/adviceiq-doubling-your-money/26339307/
  6. “The #1 Wealth Building Strategy You Don’t Know About”, by Paradigmlife Blogsite, available at: http://paradigmlife.net/blog/the-1-wealth-building-strategy/
  7. “Are You Building a Strong Foundation for Creating Wealth?”, available at: http://www.firstpost.com/investing/are-you-building-a-strong-foundation-for-creating-wealth-2682980.html

On Opportunities and Other Lessons from Wile E. Coyote

Opportunity (noun / op.por.tu.ni.ty / \ˌä-pər-ˈtü-nə-tē, -ˈtyü-\)

  • a favorable juncture of circumstances
  • a good chance for advancement or progress

See original image

Image courtesy of: Wikipedia

A little flashback…

Wile E. Coyote- the most hard-headed, stubborn, and pathetic cartoon character that I knew of. I didn’t care much about him when I was in my pre-teen years. I was all about the Roadrunner who I considered the fastest, smartest and coolest looney toon (right after Bugs Bunny). 

Everything changed when I went to Spain. Oh, how the Spanish loved the Coyote! (Just as they love Tom more than Jerry, or the fact that they feel more sympathy for Elmer Fudd than for Daffy…). It took me a while to understand their perspective but it was only lately that I began to fully appreciate Coyote.

Exactly several weeks ago, I started to entertain different side projects and I reflected on how this character always saw the glass half-full. Only then did I really see him under a different light- the most determined, creative and hard-working animated creature I have ever seen.

Introduction

Finding a job is generally hard, or at least not easy. Ask anyone unemployed and most probably they’ll give you the same answer, “The company’s not hiring”, “The firm’s actually laying people off”, “I can’t renew my contract because the department has no budget”, et cetera… Added to that is the fact that more and more people are better educated, more highly trained and some of them are willing to settle becoming underpaid just to have a job.

All of these challenges multiply to 20 times more difficult in Paris, under normal circumstances. It should come as no surprise, considering it’s a big city. It houses many international companies who daily face 10,000 times as much qualified people fighting to work with them.

Given the economic crisis/slowdown (whichever makes you feel better), it becomes 100 times extra harder to even land on an interview with the recruiters!

Thus, the day it finally dawned to me that I’ll never get a job in Paris, I stopped all kinds of activities related to job hunting* such as: checking job sites for vacancies, tweaking my resumé, and writing alternative versions of my cover letter.

What I did instead was to meditate on my situation and watch some cartoons. After enjoying a several episodes of the Looney Toons, I started to think about Wile E. Coyote’s unrelenting attitude about catching the Roadrunner.

Following are the lessons I picked up.

Lesson number 1: Change your game plan.

Ironically, the first lesson is something the Coyote never applied in his own life. For years and years for as long as I can remember, he would always resort to dynamites, bombs, anvils or other heavy objects and booby traps to catch the Roadrunner. Not once did he ever think to change his strategy. (For instance, he could bribe corrupt traffic policemen to arrest the other for over-speeding and he can have the bird handed over to him in jail.)

In light of this mistrust towards change, we should not wonder why the famished canine never got roasted Roadrunner on his dinner table.

Back in the real world, I realized how all this time I had done nothing but follow the same routine: look for a job, apply for an interesting vacancy that suits my qualification, tweak my resumé, tweak my cover letter and wait for their response. I believe the only change I incorporated in the last two years is re-sending my application after 15 days of not hearing from the company. This is not so bad. In fact, this is the way people normally find livelihood. But in 730 days, all I got were 5 job interviews.

Immediately, I became aware that I actually have to do something more productive- something that would actually turn in better results. So instead of looking for jobs, I started to look for opportunities- to showcase the quality of my written work, to build contacts, to reconnect with friends and peers from the past, to learn about other fields similar to mine, to discover different fields that have nothing to do with my expertise, to see what others are doing and to be inspired with what pioneering people are developing around me.

Perhaps I could liken my opportunity-seeking efforts to that of sowing. One sows a seed, tends to it, nurtures it and does all that it takes to produce a bountiful harvest. In the same way, I have this blog where I could practice and improve my writing and researching skills. Likewise, my social media activity has granted me access to dynamic people who have very interesting stories to tell, and who have allowed me the privilege of interviewing them. Although, it must be said that none of these transpired in a day.

As it is, this leads us to the second lesson…

Lesson number 2: Do be patient.

Exercise patience in practice- not in speech, not in theory, not in your mind, not as a “what if”.

How many times have we seen the Coyote go after the Roadrunner again, and again, and again until we get tired and turn the TV off without being told to? And during those times when we would watch him go at it yet once again: how often would we see him assembling traps, studying blueprints, constructing weapons? Then after having prepared his equipment: how frequently would we catch him hiding behind a cactus, a boulder, fitting himself into the form of a telephone pole while waiting for his prey to pass by?

Just as the Coyote worked hard to ensure that his ACME materials would work and that the bird would sooner or later pass his way, so does the farmer. For he is certain that he will gain something from what was sown. He also knows that for him to be able to gain anything, he would need TIME to do its work.

Not all that I have sown bore the fruits I expected and there were instances when the seed even turned to be a bad one. Yet I had no way of knowing until it was time to know. I was in no position to rush anybody or anything. Waiting is as much part of any process as the more active tasks. The key is to learn how to wait.

Lesson number 2.1: Learn how to wait.

This is something I had to learn from my own experience because unfortunately, not all of my “targets” move as fast as the Roadrunner.

The best way I learned how to wait is to make sure there is nothing left pending on my to-do list. Why not take a look at yours?

After marking every item with a check, proceed to ask yourself these questions: When did you last visit your dentist? Have you talked to your grandparents lately? What about that coffee date you keep on postponing with your former office mate? It may seem absurd now, but in keeping yourself active you won’t notice whether time is flying fast or slow.

The second best way I spend my waiting time is observing my surroundings. With the internet, I can do this not only beyond my doorstep but also across national and continental borders. By doing this, who knows what other opportunities are waiting to be unlocked?

Lesson number 3: Every result is a valid result.

In this case, the word VALID is not the same as DESIRED. 

Notice how in scientific experiments, all types of results are noted down (if you did an Investigatory Project in high school maybe this will ring a bell). If there is enough occurrences of such outcome, it will be factored in drawing conclusions. Why is this? because we can always learn from the past, and there’s no better way of reviewing it than taking detailed notes.

Do you remember what the Coyote would do if the giant slingshot didn’t get him close enough to the Roadrunner? what about when the canon literally backfired on him? or that time when the rocket took him too far away? He would just keep on trying new equipment until he finds himself fallen in a ravine, crushed under a ton of boulders (or an anvil).

I never take any failure for granted. I write down everything I could describe, all that I could remember and I try to consider them the next time there is another opportunity to seize.

Once I started applying this principle, my motto has since become…

Lesson number 4: No stopping (No detenerse, in Spanish)

Mr Coyote never stopped. He just kept on running and chasing after the bird even if he already hit a wall.

Do you recall how he dealt with the situation after hitting a wall? Aside from smiling at the stars and birds that circled around his head, he would paint a door, a tunnel or any type of passageway that would allow him to cut across that roadblock. 

Lesson number 5: Create opportunities for yourself.

After more than half a year of searching for opportunities other than a 9am-6pm job, I realized I had to do something more and something better. By that time, I have surrounded myself with a fantastic community of entrepreneurs, professionals, freelancers and different types of passionate people who were already giving me various ideas.

From them I learned that just like the Coyote, it is possible to create a door or a path for us to follow. The end is not the end, unless we want it to be.

Frequently, we take the already downtrodden way because it is the safest option. But truly, risks are contained in any decision we make, including when we stay undecided. Having an employment contract is financially less riskier than not having one, that’s for sure. The thing is, everything entails a risk: even signing on a “permanent” job has the risk of being dismissed. If we didn’t want to be in danger of losing it, then we shouldn’t take the job in the first place- is that how we should view life? I’m not suggesting to jump into any venture with eyes closed. Perhaps the solution is not so much to avoid risks but rather learning how to manage them. As the Spanish would say, “Quién no arriesga, no gana” (Nothing risked, nothing gained).

Do you know what the good news is? The good news is that should you decide to build your own lane and find yourself facing a cul-de-sac, you may always go back to pursue the tried and tested trails.

If we truly wish to move forward then it wouldn’t matter whether we crawl or run; it matters that we keep going (thank you, Doctor Luther King).

People who create opportunities gift themselves the chance to achieve excellence.

This is not to say that the road you will construct will be a smooth one. It never was the case for any of my auspicious friends and peers. But by letting their own selves be the engineer, contractor, builder, supervisor and financier of their ambitions, they all took the necessary preparations to face different kinds of risks. Most importantly, they worked hard and consulted with experts on their fields so they could learn how to manage those risks, in case they turn into reality.

Once or twice an impulsive plunge was taken or a hasty decision was made, yes. Then there were times when certain events were so unexpected, they didn’t even account for as risk (like a terrorist attack). Still, they went on. Most of them might not know it: but in striving to succeed, they have achieved excellence. You might be wondering how I knew this. And just to be clear, I did not have a peek at their bank accounts nor did they tell me their net earnings per year.

The excellence I speak of is being materialized far beyond any of their material possessions. The excellence I have in mind is the kind that is reflected not only in the product of their hard work (ie: a product, a service, a deliverable or a client feedback)- it is also mirrored in their speech, their actions and their intentions. For these people, excellence ceased to be a goal and has become a way of life.

Conclusion

It’s been two months since I had the realization of my need to do something more and do something better, other than simply looking for job vacancies and applying for them. I did stop the job hunt for a while, especially because I needed to meditate on what my next move will be.

At the end of the day (or week) I still look for a paid employment. The difference this time is I have become more selective, and I never fail to mention my other endeavors in the applications.

Truth be told, the time I took off the routine helped a lot; taking another course of action proved productive for me. For example, the moments I spent working on my blog doing independent research and writing have given me a certain level of exposure. Thanks to that, I am able to gather a portfolio of work which includes: drafting, analyzing, researching and translating in all the languages I speak. Now I am also more open-minded towards applying for other types of jobs besides the usual ones.

At the same time, I’ve connected with many interesting people who are currently teaching me and sharing their experiences with me. Some of them are even allowing and inviting me to collaborate with their projects!

The sudden burst of activity has become a training ground for me to exercise patience and learn from mistakes. Besides, being in constant motion only convinced me not to stop advancing my personal venture. Above all, I believe that I am creating opportunities for myself and for others. Knowing this gives a more meaningful purpose to every task I perform- to develop something that would serve not only my interests, but that of others as well.

However, no amount of patience, learning, motion and creation could guarantee goals being reached. During my short time in this uncommon scheme, I learned that perfect planning does not always translate to the projected outcomes. Whenever this happens, one’s patience is tested even further but simultaneously, more lessons can be learned, other doors can be opened and the most surprising opportunities could arise.

Lastly, it is worth mentioning the fact that the Coyote still hasn’t got any wins to prove his worth as a role model. Even so, at least his patience and perseverance make him one very admirable villain.

 

 

*My particular, personal circumstances are allowing me the luxury to do this. I do not mean to be insensitive towards other people who are forced to being underemployed and underpaid to support their families. I am also in no way encouraging the unemployed to stop looking for job opportunities and simply “go ahead with what they feel like doing”.

-The End-

Sources:

  1. Merriam-Webster online dictionary, available at: https://www.merriam-webster.com/

Some thoughts on philanthropy

For 5 months, I was given the chance to work as Prospect Research Officer (or Fundraising Researcher) for a prestigious business school just outside of Paris. I worked alongside the rest of the Advancement Team and sometimes also lent a hand to the Alumni Relations and Events (organization) departments. It was the most interesting part of my colorful professional history because: i) it introduced me to the fast-growing world of philanthropy, ii) I met some really great people and iii) the first two reasons combined have given me a different perspective when analyzing situations. Here are some of the thoughts I’ve reflected upon during that period…

Ver imagen original

Image courtesy of: http://frankazargives.com

Some people believe that charity organizations should give aid to those in greatest need, wherever they live. Others believe that they better concentrate on helping people who live in their own countries instead.

From a practical point of view, resources are more effective when delivered to those who pressingly lack them. It is perceived to be more useful, as it directly addresses the problem at hand. In an ideal world, the aid that was donated would be equal to the aid received. Yet the fact remains that a percentage of this aid is lost along the way before finding its beneficiaries: conversion rates could be harsh, banks and other financial services companies charge high commissions, there’s tax to be dealt with… In short, there’s a certain level of fungibility in these funds, where aid can become “hostage” to the local context.

That is why not only aid effectiveness should be considered when allocating donations. Costs and benefits also have to be taken into account when deciding how to dispose of available resources. In this regard, economists would try to convert the dilemma into a mathematical formula: see if there are patterns that would lead to the best choice, and try to predict a final result of their analysis.

Still, the choice is not really between helping a population “in need” and one that has “better location”. The question actually lies in how charity organizations manage themselves, whose own funding mostly comes from subsidies, grants and/or donations. As a matter of fact, non-profits are accountable to their donors, binding them to comply with the specifications detailed out by their patrons regarding the use of funds. Oftentimes, they are also required to report about the funds’ impact to the community, or at least to the target population (but this is a subject for another essay). Therefore, the choice of which people to serve does not lie entirely in their hands.

A more balanced approach would seem to be reaching an accord to meet donors’ objectives while respecting the realities of both the organization and the community he wishes to help. This means donors would have to be engaged (at least the major givers) by the organization to take an active part in determining how best to allocate their contribution. The initiative would call for a constant and consistent communication from both parties.

Ver imagen original

Image courtesy of: https://educationunderattack.info

This offers a win-win situation because on one hand, regular contact would allow the donors to disclose their motivations for making such a contribution. For instance, they could make the organization understand their emotional connection to the beneficiaries. On the other hand, organizations could take this opportunity to better explain their activities to their patrons. This could be a good moment to make them see that a strong infrastructure and qualified professionals are required to deliver aid to those who are in need; and as such,  funding has to be allocated to these operational aspects as well. Only through communication can the two ends find a middle ground that would allow each of them to carry out their respective mission statements.

A typical philanthropist would think and argue about improving the lives of those in greatest need; while a typical economist would compute the costs in terms of time, effort, phone bills and transportation that result from the continued communication between donors and organizations. Both would have good points to defend their views.

Ver imagen original

Image courtesy of: https://intentionalmuseum.com

However, it should be noted that listening is as vital as analysing in any problem-solving situation. Gloria Steinem, co-founder of the Women’s Media Centre explains, “Helping begins with listening. Context is everything… Big problems often have small solutions. And finally, do what you can.”

Sources:

  1. “The Parable of the Fence and Other Lessons”, available at> https://www.linkedin.com/today/post/article/20140404194646-25295057-the-parable-of-the-fence-and-other-lessons
  2. IELTS Essays, Essay Topic sample available at: http://www.testbig.com/ielts-essays/some-people-believe-charity-organizations-should-give-aid-those-greatest-need-wherever

A Lesson On Job Commitment

A young lady went to the mall

and shopped until her budget allowed;

dresses, shoes, bags from almost each and every stall.

Of course, how could she forget

to pass by the food court- ah, she ate her heart out!

But the grilled squid, crab rice, soup and gulaman

waged a war in her tummy, bullying the leche flan.

 

So she ran to the restroom, pushing everyone away.

(Let’s leave out the details of what had transpired.

But oh boy, she made a mess! that we can safely say.)

Red-faced and ashamed she looked for assistance

because the toilet flush broke.

A uniformed lady approached her with a smile. She was hard to ignore.

She was coiffed, made-up and she was fragrant.

Oh and with a big pump in her manicured hands!

The young woman reached out for the pump

but the uniformed one kindly declined, shaking her head.

“I’ll clear the toilet, madame. Thank you”, she said.

The young woman wished to die

because back there was something very unladylike.

She insisted to clean the mayhem herself

but the other won’t budge,

she just kept smiling and asserting it’s her job.

 

The young lady shamefully walked away.

But not because of her biological disarray.

For she thought about her job in a renovated palace,

in the city center, near the office of the mayor.

She thought about the airconditioned work station,

the fancy lunches, the interesting debates… that was her day to day.

Yet she complained and was discontent.

After meeting the uniformed woman, who literally

cleans up people’s sh*t for a living, daily,

with a smile on her face and not one sign of lament

she was filled with guilt. Dumbfounded, she did finally see:

how life whacked her to reality.

That Which Contains the Human Capital

When I was in 6th grade, my classmate Ellen S. once told me that according to her grandmother, “There are no ugly people. Only less beautiful ones”. That struck to me as something true and it appealed to my empathic nature. I adopted that philosophy until my adulthood and was happy with that reconciled thought.

The first time my husband heard me say that, he laughed so hard because he thought I was being sarcastic. After a few dates and several encounters with the “less beautiful”, he finally realized that I meant it.

So, what does it mean to be ugly in the realm of human capital?

What is Beauty? What is Ugly?

Beauty, according to sociologist Jean-François Dortier is a debatable topic for all eternity because ugliness is indisputable. Allow me to disagree. The concept of ugliness is just as subjective as that of beauty, making it susceptible to disagreement and justifications. What’s more, if people and societies have a clear idea of what is pleasing to the eye, then they must have an equally decided criteria of what is not. However, he argues, there are constant elements present in every idea of beauty across time and continents. For instance, badly placed teeth, weird spots on the face, grimace-like facial expressions or stains will hardly be found in those considered as canons of beauty.

Dortier, in his article “The Tyranny of Beauty”, says that ugliness in a person is a heavy handicap when brought into the markets of marriage and labor*. I will not disagree. But allow me to focus this post on how physical beauty plays an important role when buying and selling (workforce) in the labor market.

I believe that the idea behind this discrimination is caused by the unthinking mammals in us, who uses its instincts to survive. In the animal kingdom, the ones who are successful in mating are the more beautiful samples of their species. Why? Simply because it denotes HEALTH and thus, STRENGTH. An animal’s only role is to procreate and who better to multiply one’s race if not the best and the most likely to survive of the lot? The equation is easy to infer:

Beauty=Health=Strength=Breed=GOOD

With regards to human capital, somebody who looks good (well-proportioned body, bright eyes, good teeth and pinkish complexion) is certainly a sign of having been well-fed, a smooth skin on the face signifies not much exposure to external or internal stress and of course good grooming is very much attributed to a good upbringing in the family.

The relationship then, is easy to establish: somebody who is properly nourished, who did not experience much stress and who was brought up well must belong to a family with enough resources: resources which sufficed not only to make the person survive, but to develop him into a citizen able to participate in the community. Thus, the better-looking a person is, the higher value is attributed to the talents and capacities he was able to build up through his lifetime. The equation could then be modified into:

Beauty=Health=Learning Ability=Developed Talents=GOOD

Sadly as time passed, this equation has slowly been overly simplified as:

Beauty=GOOD

Sadder still, the concept of goodness has been generalized to being good overall: good worker, good person, good team mate, etc… Only time will prove this notion to be untrue, after all that’s been said and done, spent and consumed- leading to realizations and regrets.

For instance: 13 years ago while spending my summer holidays in the Philippines I overheard a friend complaining to my mother. Apparently in all the job interviews she has been to, the requirement “Must have pleasing personality” was always being equated to “Must be pleasing to the eyes”. In short, the job applicants must respond to a certain beauty standard established by the Human Resources (HR) department.

Now, I admit that for jobs requiring a brand representation or corporate delegation perhaps being easy on the eyes increases sales and improves financial results. I also know that HR staff cannot waste their time interviewing candidates just to check whether they meet the physical requirements they’ve imposed (in those cases where a photo was not included in the resumé). But demanding someone to have a pleasing personality when what they meant was for the candidate to be a certain kind of pretty… is just plain deceiving.

Anyway, who was the authority who declared that a beautiful physique is equal to a pleasing personality? Above all, whose claim made it a fact that a beautiful façade always holds a great talent?

In fact, below is Eduardo Gómez Manzano, famous Spanish actor. He is very well-appreciated in his job. He, along with the other beauty-lacking actors have opened up this generation’s minds and as well as this century’s entertainment industry that talent is not always contained in a lovely package.

Image courtesy of: http://www.fotoshumor.com

Boosted Brands but Talents Trashed

Studies have shown that other job types where no “representation” of the firm is needed, hiring teams still tend to favor beautiful applicants. Again, why? Because it’s good for the company’s image. It boosts the brand. It matters little if another candidate was more competent or skillful- human nature just can’t help but lean towards company that could offer pleasure to its vision.

It’s a pity though, because can you imagine if the Futbol Club Barcelona (FCB) refused to hire Ronaldinho because of his looks? Having said this, can you now picture just how many people lost their opportunity to contribute to an organization’s mission and vision just because they didn’t qualify physically? And can you imagine how much potential is currently being left unused just because of this terribly absurd bias?

I have stopped being a football fan more than a decade ago, but I admire how the sport’s values are consistent to their branding strategy. A football club must be composed of the best players it could hire (pay for) without regards to whether they would look good or bad in front of a camera (although I noticed Ronaldinho seemed to have had something done to his face).

In an ideal world, banks and/or banking groups would hire the brightest analytic minds, research organizations would employ the smartest and most focused among the pool of candidates, schools would choose their teachers according to their capacity to diffuse knowledge and infuse curiosity, shops would enlist salespeople with charm and wit to engage customers, and so on…

This way, demand for a specific qualification would be met by the satisfactory supplier; competition among various suppliers would rise, pushing more and more suppliers of talent/labor/workforce to be better qualified than the rest and prices (salaries) would adjust accordingly.

dream

Image courtesy of: http://www.fastcompany.com

(In the least ideal world, we’ll have what I call “Pippas”. Pippa* was my college teacher in Economic History. Not only is she the opposite of beautiful, she also taught horribly! in short, ugly and incompetent people.)

Ugly ≠ Unkempt but Unkempt = Uninterested

While conducting a very modest research on this subject, I encountered quite a number of online fora exhibiting questions such as, “Are smart people ugly?” or “Why are smart people usually ugly?” (For the sake of simplicity, we shall assume that being smart equates to being competent in any given job.)

As someone who is more appreciated for her smarts, I believe I am at the position to respond. And my answer is that most (not all) smart people find it more important to strengthen their brains than to embellish their physical selves. There are so many books to read, so many people to talk to, so many things to ponder and many, many more things to (literally) take note of that a normal person’s waking hours are not enough**. That is why they make it a point not to “waste” time doing something not so gratifying to them.

The point is: One can be as ugly as far as ugly goes and admittedly, not all can afford cosmetic surgery to modify their genetic legacy. But I believe that a person’s appearance is his presentation card (especially in a job interview!). As such, one cannot care too less because first impressions do last. Besides, in the context of hiring, interviewers would actually imagine themselves working with you, travelling and attending meetings with you and perhaps even having to defend any future blunders you might commit. Do you think they would want to do all those things with a sloppy-looking colleague? Accordingly, one can and must appear neat, pleasant, motivated and ALWAYS COLLABORATIVE. Here’s why…

An Unexpected Twist

According to an article from INSEAD Knowledge, “… the type of expected relationship the decision-maker will have with the new hire is very much a consideration, consciously or not, when selecting candidates for the job.” Although the results of the experiments were more conclusive for men than women, it’s interesting to note that when the hiring personnel perceive that the attractive candidate could be a potential competition (read: could be a threat on their own promotion) the less attractive applicant would be chosen instead.

“Members of the same organisation are often mutually interdependent, for example they may cooperate for shared rewards when they work for the same team, or compete against each other for recognition, promotions, commissions, and bonuses. In many organisations today co-workers are included in the hiring process… Similarly, professors at universities often selected professors they are going to work with. When this occurs, the type of expected relationship the decision-maker will have with the new hire is very much a consideration… ”

A twist within the twist

On the other side of the Atlantic, Debrahlee Lorenzana sued her employers for having fired her because she was “too hot”. Thinking about it and as the Newsweek article pointed out: “isn’t it possible Lorenzana’s looks got her the job in the first place?”

Yet, did you know that some studies even show that attractive women may find it hard to be hired? supposedly if the employers are females, jealousy may arise.

∼sigh∼

Are We Doomed?

I would sincerely like to believe that we are not. Yes, it would take years of education and enlightenment before people get to terms that unattractive people can be competent, good team players, efficient leaders and desirable work mates. However, the diversity of human nature provides for adjustments such as:

  • The belief that beauty automatically translates to competency is compensated with the view that attractive people could deter the employers’ own progress or,
  • That beautiful people are just dumb.

Such absurd conclusions may be the exceptions to the rule, but I would like to believe that there is a balance being struck somewhere.

In a world where being beautiful is being sold as a choice (just Google how many $$$ the cosmetic industry cashes in per month), those who are not might be deemed indifferent or inflexible. But this is the same world where information is the most important resource for production, so it will just be a matter of time before everybody- even the unbeautifuls- find their place in it.

 

*Name was changed
**Personally, I prioritize hygiene but I don’t find it practical nor worth my time to wake up 30 minutes earlier just to apply makeup and fix my hair. I clean, I moisturize, I tie my hair and I brush my teeth. And I smile.

-the end-

 

Now, just because it’s summer in this part of the hemisphere: join me by putting your speaker volumes to MAX and enjoy the un-beautiful BUT DIVINE, JANIS JOPLIN!!!

(THANK GOODNESS THEY WEREN’T TOO SHALLOW BACK THEN)

 Disclaimer: I do not own this video. Video courtesy of Zuzuking Youtube page.

Sources:

  1. “Don’t Hate Me Because I’m Beautiful”, available at: http://www.economist.com/node/21551535
  2. “The Beauty Advantage: How Looks Affect Your Work, Your Career, Your Life”, by Jessica Bennett, available at: http://europe.newsweek.com/beauty-advantage-how-looks-affect-your-work-your-career-your-life-74313?rm=eu
  3. “The Beauty Premium”, by Schumpeter, available at: http://www.economist.com/blogs/schumpeter/2010/11/good_looks_and_good_jobs
  4. “La Tyrannie de la Beauté”, par Jean-François Dortier, available at: http://www.scienceshumaines.com/la-tyrannie-de-la-beaute_fr_22384.html
  5. “A New Twist to the Beauty Bias”, by Stefan Thau, available at: http://knowledge.insead.edu/talent-management/a-new-twist-to-the-beauty-bias-4004