Please check out my blog on Financial Freedom called Rich Filipino Club.
History has proven that investing in quality stocks can give greater returns than most investment instruments. This offers you the best chance in achieving your financial goals and gives you the ability to later enjoy the benefits of your money working for you.
Growing up in an average Filipino family setting, I never really paid attention in investing. I was under the impression that for me to be successful I need to study hard and get high grades, find a good job, save and go on with my life. Never was I aware (or I guess I ignored it) that saving your money in the bank will only yield a measly 0.25% interest per year. This simply means that your Php100 will earn you 0.25 centavos in one year.
I attended a seminar recently about investing in the Philippine Stock Market and it really was a huge eye opener. Ask any Filipino what’s the US Dollar to Philippine Peso exchange rate and they would give you a somewhat correct number. In contrast, try to ask a Filipino what’s the current inflation rate and you’ll be lucky if he/she even knows what it means.
Inflation in the country is at 4.1% which is still considerably low. How does this impact you and your goal to be financially independent? You’re money needs to earn at least 4.1% this year to break-even and more to earn. Is your money going to earn 4.1% by sleeping in your savings account?