5 Things You Can Do to Secure Your Future

Personal finance has never been part of the Philippines' educational system. As a result, most of the population does not have a foundation for handling their finances. Moreover, Filipinos seldom discuss personal finance in their home. Parents do not often teach their children how to manage money. They generally think that children are too young to know about saving and investing. That is one of the main reasons why parents don't teach finance to their children at home. Even in my own home, personal finance is a topic we never discussed. I had to learn these things by myself or through experience.

Most people disregard their financial future. They believe they have ample time to secure their future. If they only realize that time plays a vital role in accumulating wealth, they will change their thinking. In general, it is easier to accumulate wealth if you have ample time to build it. For example, with an investment offering a 10% return on an annual basis, one hundred thousand invested over twenty-five years will accumulate one million. On the other hand, you will need four hundred thousand with the same 10% return to gain one million in ten years.

I started investing in my twenties and funded 10% of my income in a VUL. Even though that amount is not comparable to my current earnings, it was easier for me to set aside that amount for investing. Although my current income has increased, my expenses have also increased. In comparison, I have more responsibilities today compared to when I was still in my early twenties. Setting aside a portion of my income now is harder since I have a family to support.

You should not be discouraged because you are young and have minimal income. Even if you invest a small amount at the start, time gives you an advantage. Always remember that funds invested early can exponentially grow in the long run. Had I known this before, I would have set aside more of my income back then. I would have started earlier in my teens when I earned my first income. If only I learned this earlier in life, I could have already retired by now. In short, invest as soon as possible, even if you start with a small amount of money. Remember that time influences the growth of your investment.

5 Ways to Secure your Savings and Investment

• Use a passbook savings account without an ATM. Passbooks are less accessible compared to ATMs. You can only access your account during banking hours and on the same bank.
• Open a joint account. Requiring the signature of another will make it difficult for you to get your savings.
• Place your savings in a Time Deposit. Time deposits have a minimum holding period, and you will receive a penalty for early withdrawal. This penalty is a good deterrent for withdrawing funds.
• Enroll in a Mutual Fund/UITF Monthly Investment Program. Automating your investment will lessen the possibility of you delaying it.
• Take risks while you are still young. Invest in volatile investment instruments such as stocks if you have time on your side. Longer investment horizons will allow you to enjoy market volatility. It will also allow you to recover from temporary setbacks if the market turns against you.