I’m Making Smart Financial Decisions at Age 21

First of all, I’m not an expert on handling finances. My friends would know I always overspend way beyond budget (but I have the money, so no one’s complaining), and that all I do is shop and shop. I’m an only child, and I’ve never fully appreciated being one until I had to earn the money I will use for my everyday expenses. My job’s not an 8-5 occupation, which makes me more conscious about the money I’m earning and where it goes to. So yes, this is where it all boils down: I want my money to go where it matters (aside from the happiness that shopping satisfies :))

One of my close friends opened my eyes on the importance of investments. We’ve never been taught this in high school or college, which is sad, because we know very little about investing, yet this is so important to preserve our income. Imagine saving your money so that you can buy that coveted bag you’ve always wanted. You save and save for months. With the rate of price inflation by 5% per annum, the bag which costs 3000php (example lang) have become 3150php by next year. What a waste, all that saving. You’d think, “Sana ginastos ko na lang.” Sana nga ginastos mo na lang, to begin with. :))

So my example might not be the best example. To make my point simple, your money in the savings account is not being optimized. It’s not working for you as well as it should. And when I realized this, I started researching. Research I did, until I have stumbled upon a treasure box of investment knowledge.

Save 1000 Pesos per month and have 1 million in 22 years by Garry De Castro of All About Financial Planning Philippines

The youtube videos I have posted are only part 1/4 of episodes 1-5. The last video is part 2/4 of Pesos and Sense episode 5. If you have no time to watch all the videos, at least watch the last video, it’s pure gold.

Watch Pesos and Sense episodes on their Youtube channel HERE: http://www.youtube.com/user/PesosAndSense

I am sharing this with everyone because I want to share what matters. I hope people who need it most would know about the importance of saving vis a vis investing. While the importance of saving is a given, the importance of investing must be highlighted as well, and a lot of people are still in the dark, left uneducated about this important issue. Sabi nga ni Aya Laraya, the host of Pesos and Sense, “Time is Money“. And invest I shall, while I am young. :) The best part of it is that I don’t have to have a six-digit salary to start investing! Some investment plans offer 5,000php initial investment and minimum of 1,000php reinvestment. Keri diba? Keri! The only thing that I regret is that I did not start earlier. When I say, “Sayang ang time!” it’s tantamount to me saying, “Sayang ang pera!” because time lost is money lost.

So yes, this might be one of my first few posts which antagonizes my attitude of consumerism. At least, medyo guilt-free spending from now on, because I know that I am allocating a portion of my hard-earned salary to savings, and not just savings, but savings that grow and mature over time.

Take note: I’m not a stock broker, nor am I a Financial Consultant or an Insurance person. I’m not endorsing any bank, stock brokers, or brands. I’m just a commoner, and I used to know next to nothing about these investments. So before investing on anything, research, research, research. Ask around, consult reliable sources, attend free investment seminars, search the internet. Don’t make hasty decisions about your money. I can’t give you advice on anything, I can only tell you how I started (and I started just recently too, so I’m not the best example for anything.) There are a number of investments that you can make, but in choosing the investment that’s right for you, there are a number of factors to consider: your lifestyle, risk appetite, the amount of money you can commit to invest, etc, so what works for me might not exactly work for you. Parang skin care product lang ang peg. :)

If you’re interested in learning more, you might want to attend the seminar series being offered by Pesos and Sense TV host Aya Laraya:

How about you? What do you do with your hard-earned money? Do you have investment tips and know-how that you’d like to share with everyone? Share it with me by commenting below! –ED

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