How do you make use of your hard-earned money?
Some people have the wrong notion when it comes to investing. They think that they should start investing when they reach the age of 40 or 50. And probably because the younger generation may have all their focus on saving up their money to purchase either a property or a new car, learning to invest at an early age allows more time for your money to potentially grow.
Whether you start with a small amount or not, the important thing is you have already started out early.
Now, although there may be so many kinds of investments that are available for you, still, you must fully understand how your money would grow. And the most important thing to consider is to invest only with a trusted company. Don’t be swooned by those who would inform you that your money would grow 500% in as little as less than a year. There had been a lot of people who had been completely blinded by the truth. It takes time for the money to grow. Unless you involve yourself with illegal activities, then it is possible for you to be literally picking thousands of pesos every day.
Finding the Right Balance Between Savings and Investing
We all grew up hearing from our parents telling us to learn how to save. And so, with that, all we know is that keeping your money aside or in the bank for safekeeping is enough so that when the time comes and we might need to use the money, there is something that we can rely on. But, more than just saving, we can let our money grow even more.
Saving and investing are entirely different things as they serve different purposes. When we talk about saving money, this means that we set aside cold, hard cash and keep it in a safe place that can be accessed at any time. So, this is where you put aside the money that you intend for paying the bills, mortgage, and emergency funds. This can be in the form of a savings account and checking account. Some old folks would even just keep them in their homes for fear that they might not be able to get hold of their money thinking that the bank can just go bankrupt anytime.
Investing, on the other hand, is using money as capital to buy an asset that you think can has a good probability of generating a safe and acceptable return of money. There are many ways where to place your money for investments. The best forms of investments are bonds, real estate, and stocks.
For example, purchasing a piece of land. I have encouraged a lot of OFWs that I have met to start investing while they are still capable of working abroad. Sadly, most of our kababayans are more focused on just sending money or providing material things for their family that they fail to take a part of their earnings for investment. They should realize that since they are under contract, it is likely that their employer would suddenly just stop renewing their contract. So, what happens next? They go back to the Philippines and start all over again. No traces of having worked abroad for all the money that they earned were used up.
But, if one would consider buying a piece of land, he may use it as a farmland, if the purchased property is located in the province, or he may use the property to build an apartment so that it would become an additional source of income for the family.
How Much Should Go For Savings and for Investment?
Generally, your savings should be able to cover the following for at least six months:
- clothing expenses
- food
- insurance costs
- loan payments
- Mortgage
- utility bills
Ideally, you need to have the amount of money that you are willing to place for investment. Remember that the money you put on your investment cannot be taken out right away should you need it. It may still be possible, though, there will be charges. That is if you have placed an investment, for example, Php1,000,000.00. You cannot take out that whole month. A certain percentage will be taken from that amount as some kind of “penalty” charge.
Will you be fine with just saving money, or will you take that step and start thinking of growing your money more? The investment that you put in a certain stock or real estate can be long-term, which means, your money can grow up to 10x more.
To help you get started, start earning more and spend less. That way, you can soon have the necessary resources to start with investment and you can enjoy the rewards of success.
CHECK OUT more advice from Butz Bartolome:
Positivity Amidst Trials and Tribulations | Butz Bartolome
Are You Spending Your Money Right? | Butz Bartolome
CHECK OUT the Philippines’ top mentor Butz Bartolome as he discusses business matters and SHARE THIS STORY with entrepreneurs and aspiring entrepreneurs who need the advice.
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