A few weeks ago I got to chat with a former college friend. Last we saw each other, we talked about starting up a small business and involve our other college friends. However this was not able to materialize and I ventured into another prospect.
Unknowingly, she started the said business on her own with a capital of P10, 000. Now she has 2 second hand cars and working capital of P300,0000.00.
I am really happy and proud of her success. Of course, you can't blame me to feel a bit envy. This had me thinking where I am with my "financial independence".
Lately I have been reading Francisco Colayco's books on personal financial management. His books are written in very simple and understandable Tagalog.
You'd realize that simply having a savings account is not really enough. It's a matter of sustaining your lifestyle beyond your retirement.
(Understand that I come from a modest household and have no accounting background just like the greater majority. So my comprehension of these matters are solely based on my slightly directionally challenged mind.)
"
Poor people in developing countries share the same goals as all people -- economic security for themselves, their families, and future generations. The main difference is that they have fewer resources and opportunities. Most live in high-risk and unpredictable environments. And, compared to others, they don’t have much money (Rutherford 2000). In this context, managing the little money that they have is vital. Good money management is critical for meeting day-to-day needs, dealing with life cycle events and unexpected emergencies, taking advantage of opportunities when they present themselves, and planning for the future."
This is from a work paper I found over the Internet FINANCIAL EDUCATION FOR THE POOR.
As I understand, there are a lot of investment opportunities out there. There's government stocks and bonds, mutual funds, franchising, getting into a business, etc. Even if I hail from the province that boasts to be the number one in cooperatives in the Philippines, why did I know about this just now?
Consulting some friends in and outside the country, long term financial management education is almost non-existent here. The cliche mayaman lang ang yumayaman, ang mga mahirap lalong naghihirap sounds like sour graping about people who can properly manage their finances.
I have tried to get into several investments in the past, though they didn't turn out the way I wanted them to be and lost almost around a hundred big ones. But that shouldn't stop me. I've grown to be a risk taker and learned in these experiences.
New Goal Setting: a stable Passive income before hitting 30 and triple personal net worth come 35.
BTW,
If you're still deciding on which bank you want to start saving money, here are some factors you can consider. http://www.investmentphilippines.com/2011/05/criteria-in-selecting-bank.html
The Bank of the Philippine Islands (BPI) and BPI Family Savings also have a very nice promotion going on. They have introduced the BPI Easy Saver Savings Account. Savings account with no maintaining balance. This is very ideal to those who can't maintain or don't want a savings account with maintaining balance. Initial deposit would be P200.00 maintaining balance to earn interest is P1,000.00. Though there is a P5.00 for every ATM withdrawal.
This is a very good opportunity to start saving.
2 comments:
BPI Family has slightly better interest rates and lower account minimums than BPI Main, although you need to deal with making sure you locate the right branch to transact business with.
And once you've built up enough savings, you can utilize BPI's Maxi-Saver, which provides interest rates similar to time deposits as long as you don't withdraw in a month.
Thanks, Rocky.
And yes, they do have better offers if you're just starting out.
I'm looking into the next steps,ie mutual funds/UITF and other investments. I am still researching on the matter.
Though I have to get my capital first. hahah!
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