How to Invest and Save for your Future and Life Goals
Do you plan to climb the highest mountain in the Philippines? Join Marathons around the world? Train for your first Triathlon? Or travel and enjoy life with your love ones? So what are you doing about it now?
I was fortunate enough to have met friends and mentors who taught me how to invest and save for my future. It enabled me to do a lot of things in life that I enjoy today, and I wouldn’t have been able to leave my corporate job, and dedicate my time on Pinoy Fitness if I didn’t have some investments and savings in place.
Sharing some of what I learned here:
1. Invest in a good Life Insurance – When I was younger, when I hear the word life insurance, I immediately think about it as a waste of money. Now that I’m older, I start to see the value of a good life insurance.
We work day-in and day-out, to save for the things that we want most in life, it could be a new house, a car, to travel or just to enjoy life, all of us have different wants and needs. So as you work and save for the things you desire, what happens when you get sick or got into an accident? Who pays for the bills? This is when you start dipping into your life savings.
That’s why I consider Life Insurance as a safety net. A well designed Life Insurance can provide assistance for several uncertainties in Life, assistance for accidents, critical illnesses that can quickly deplete your life savings.
2. Invest in a good Mutual Fund – Traditionally we’ve been taught by our parents to save and put our money in banks. That’s the best way to secure your savings yes, but it’s also NOT going to grow, current bank interest provide very little to no interest at all! To make your money grow, you need to take some risk.
Many companies and banks in the Philippines offer Mutual Fund investment options. A mutual fund pools money from different investors (including yours) to invest it in various stocks and securities with an objective of growing the accumulated fund.
One thing to note though is that investments in Mutual Funds are not guaranteed and your fund value can fluctuate base on market conditions, but based on personal experience, if you look at a 5-10 years investment period, growth for Mutual Funds are typically much better than Time Deposit investments much more if you just leave your money in the bank.
When you’re more experienced you can consider exploring on investing directly in the stock market, do real estate or start your own business.
3. Save some for Emergencies – Make sure to also maintain a certain level of liquidity for emergencies and unexpected expenses, leave enough so that you don’t prematurely terminate your Mutual Fund or Insurance investments for every small emergency that may arise, this will give time for your investments to grow.
4. Enjoy Life – Never forget to enjoy life and do the things you love. We sometimes work so hard that we forget to reward ourselves. So once you have a good investment plan in place, you can start enjoying life, do the things that you love, and better prepare for your future. Just remember to save first, before you spend.
Each of us have different financial needs, my plan might not fit yours, my needs are also different from yours, but we all need a good financial plan to help us enjoy life now while preparing for the future.
Want to Learn More on how to Invest and Save?
If you want to learn more on how to invest or need a consultation on how to prepare for your future, leave your details below, i’ll personally get in touch with you: