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Where to place your Money? - Road to Financial Security

If you watch news on TV and read newspapers, Most subject matters were focus on the prime commodities, like money, food, oil, our main exports and import products or there derivatives, also national issues; such as  politics, involving corruptions., and world events like wars disorder and natural disasters. But do you realize that these were all have integral effect on the condition of our economy? Or say it directly and indirectly controls the economy, the financial condition of the Philippine Economy. Whenever the dollar devaluates, exports earnings suffers, when world sugar prices decreases because of oversupply or low in demand, our GDP affected.  When there is a war in investors’ back outs and stock market crashes. Even good indicators like lowering oil prices could reduce income of big industries if not properly regulated. The increase of employment rates also creates negative impacts; because it increases inflation “the devaluation of peso or its purchasing power”.   But our country GDP derivatives were diversified from different sectors; from agriculture, computer products and BPO’s, OFW remittances, mining etc., and it’s up for our government and business sectors to balance or manage their resources, In order for our country to be stable and economically strong. When our country suffers we ourselves also suffers, It drastically influence our personal finances. And who shall manage our finances to prepare for these. But ourselves. Most of our savings are deposited in our Bank accounts - it’s safe!?. But most of us didn’t know that the value of money diminishes as time goes because of inflation. Inflation as of to date averages from 4% to 4.5% and bank interest rates is only at 1% to 1.5% (savings & time deposit) these means that your money devaluates by (1%-4%) or by 3% every year. The buying power of your 100 pesos would become 97 pesos after one year. And become 94 pesos after another year, a compounded devaluation. Cost of living also increases 4 percent per year, means for every 100 peso of commodities you purchase 4% of that merchandise value increase every year. Now, to be financially wise we must know where to place our money…, to Invest in “Growth” not in just being “Bank Safe”. To park your money where it will grow? Enough for your retirement, in case of emergency and for your daily needs? If the cost of living today for a single family is 420 thousand a year or 35 thousand pesos a month will you able to sustain it 30 years from now?  How much should you earn in thirty years then? Say at 3 percent rate increase cost of living per year? If you are at your 30’s, for the next 30 years you need at least a minimum of 1.2 million in order to meet a better living or else you’ll live in insecurity and broke . So, I advise you to invest now...?  In Bonds, Shares of Stocks, Trust Funds, Mutual Funds, and Real Estate.      

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