I read in an online article last week that some of the famous TV hosts here in my country don’t know how to fully make their money works for them.
Some of them save 10-20% of their income in the bank and then when a certain thing shows up that they really like, they withdraw all or some of their earned money and splurge it all into that gadget. Another one is he just saves his extra money into the bank and nothing else. I’m not saying that saving in the bank is not good but knowing what investments or where to invest your money which gives you a higher return is much better. The money we save in a bank can be used for emergency purposes or other related matters because we can withdraw the money anytime. The last person I would like to share is he doesn’t mind what he earns instead he let his wife manage and budget everything. It’s not bad either but not good in a sense that you neglect it as if it’s not important to you.
What you notice is 2 out 3 use bank as storage of their money (most of the Filipinos are like that). I’m not sure if they only know active income and passive income is an alien to them. They should know other legitimate investment vehicles in order for them to earn residual income (money works for them) even if they stop working today.
I was saddened after knowing that learning financial literacy has not yet ingrained in Filipino culture. Most of the citizens here do not know what mutual fund is, as well as stocks are. They do not give importance to insurance too because they do not want to think about their old days, benefits it can give once something bad happened to them.
Anyway, let’s end it here by leaving you these words: “If you loved yourself, you would do things today that will help yourself in the future. Remember, you can’t work forever so you must be prepared when that day comes”.