Investment Reminder

June 16, 2014
  • What to do with your extra cash?

    Have extra money? Want to know what you can do with your spare cash? Want to earn more with your current savings?

    In the early 90's the usual response we get would be "put it in the bank" or "put up a business or something".

    Well, we are in the 21st century, and the common response we get nowadays would be "Invest it!"

    Q: "Is putting up a business not considered as an investment?"

    A: Of course it is, but there's a high risk that you will fail should it be the first time for you to do. And you would need more money just in case but what if you don't have "more money"?

    Now first of all let's define what investment is all about. Investment or to invest is a process of expending money with an expectation of profit. In other words, to invest is make more money! **cha-ching! cha-ching!**

    Now, I know your next question would be, where to invest?

    So let's take it that you already have 6 months’ worth of emergency fund just in case you lose your job, you have savings and you are debt free; I have 5 investment ideas that may come in handy for you.

  • 1.) Open a retirement fund.

    This is aside from your contribution to Social Security (SSS). Some people opened their own retirement fund 10 years, 15 years, 20 years, 30 years, even 40 years before the even started working! The benefit of opening a retirement fund, imagine this: staying in your dream house, beach front, worrying nothing (well… except for the latest news and your food for the day of course) and just feeling relaxed; in short, to be comfortable and have peace of mind if what a retirement fund can do. So make that investment, it will be worth it!

  • 2.) Increase your SSS Contribution.

    Now, most of you will be wondering: "why increase my contribution?" Remember that SSS stands for Social Security System which is basically an agency for private sectors where you invest your money for retirement. So let's say that your monthly obligation with SSS is PhP1500 and you are earning let's say PhP20,000 a month, after your deductions which could possibly bring it down to around PhP16,000(don't quote me on this), you can add an amount to SSS depending on your preferred percentage (could be exact amount) of the existing contribution. Again, always remember that this is for your future; not for today, not for somebody else and definitely not a short term goal. If you want to have a better tomorrow, start now!

  • 3.) Invest in Stock exchange.

    Now this can be a bit tricky. For people who are really into taking risks and wanted to earn more money at the same time, Stock Exchange is for you. If you know how this thing work, what or which company is on a roll, stable, with good reputation and has a high chance of bringing you more money let's say in the next 15 to 20 or even up to 30 years, you may have a chance with this high risk type of investment. Again, when investing, you need to always look ahead of you and of course, do your research, it helps sometimes.

  • 4.) Open an Educational Plan for your kids’ future.

    Previously, I know we had this open-ended type of educational plans back in the late 80’s and early 90’s in which it went bankrupt and your hard earned money went down the drain. Today, they changed the policies with the pre-need plans that are in the market today. There are plans that offer a specific peso-value per unit with an increase in a specific percentage should the school raise their tuition fees. This is a very good investment and a wise decision to make. This is not just being smart but also you are securing the future of your child or your future child (should you still be single), plus it makes you worry less of the budgeting especially in college.

  • 5.) Always invest in yourself.

    This is all about you. Remember that what you are planning is for your future: your family, your kids, and can be your business – it’s all about you. So help yourself! If you have plans on making more money and you think you need to learn something to do that, go ahead! Take another course – may it be an MA or a PHD or even short courses. Just do what you think you should. Maybe they will think you don't need that but once you reach success, you may hear them say “I should have done the same thing.” Or maybe you are too burned out because of this “successful money making” business of yours, then go ahead! Take a vacation! Who knows? Maybe you can make a business out of your trip. Sounds like a plan?

    So to draw the conclusion, no matter what type of investment you engage in, no matter how small or big your investment is, it is for your future! So do well. And just always remember that Time is gold, and time is the most precious commodity in the world today. Use it towards your advantage and you’ll have a brighter future ahead of you.

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