Don’t just let your money sleep in the bank.
According to the Bangko Sentral ng Pilipinas, as of 2015:
- The number of households with savings reached a record high of 31.6 % from 25.7% in the previous quarter.
- More than two-thirds (68.5 percent) of household savers have bank deposit account
- 39 percent kept their savings at home
- and, 24.9 percent put their money in cooperatives, paluwagan and othe
- credit/loan associations
According to respondents, they save money for:
(a) for emergencies,
(c) health and hospitalization,
(d) retirement, and
(e) business capital and investment.
This is good.
This means that more and more Pinoys are starting to see the value of saving. 🙂
However, look at the reasons for saving – health, retirement, education?
Hindi enough na ilagay mo lang ang savings mo sa savings account, or sa bahay mo…
Kasi hindi iyan tutubo.
This is why instead of telling you to save your spare change, it’s actually better to invest it instead!
Saving is for safe-keeping. When you save your money, it’s just sleeping in the bank.
Investing is for earning. When you invest your money, it’s working hard for you.
Did you know that on average, our inflation rate is 4%?
This simply means that the prices of goods and services increase by 4% each year.
But your time deposit only gives you <2% a year to “increase” your money’s value.
You don’t need to be a genius in Math to realize that putting your money in a time deposit account actually doesn’t earn you any income.
Whichever way you look at it, lugi ka pa.
So the next time you have spare change, invest them instead.
Personally, what I do is this:
– Put my P10’s (ten peso) and P20’s (twenty pesos) in my Freedom Fund, for investment.
Then, whenever my Freedom Fund is full, I take out 50% of it and invest it in my mutual fund. The other 50% is used as an investment-top up to my VUL account!
(Read: What is a VUL, and why do you need it?)
It’s not enough that you work hard and just save.
You also need to invest so that your money works hard for you.
Want to get started managing your money/budgeting/investing?
Mobile: 0906 243 5059
And we can even meet personally for a FREE financial planning session! Let me know so we can finalize a schedule that works.
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