Let’s say you do have money. So, how do you use your money and make it work for you?
Most people leave their savings in the bank. Do you know how much the current interest rates are?
If you are not netting 4% per annum, then your money is losing value. With an average inflation rate of 4%, then every fifteen years, you lose half of the value of your money.
Here’s an example:
If you have 120,000 pesos today, it will have the same as 60,000 fifteen years from now. In another fifteen years, that would be like 30,000 pesos today. Do you realize that prices of commodities keep rising?
Because you are smart, you understand the need to keep growing your savings at a rate that is higher than 4% a year.
Low-risk mutual funds are not better than bank savings interest rates.
Medium-risk mutual funds don’t make you much money, but it's better.
High-risk mutual funds can earn you roughly 14% to 16% per annum, which is great. But the risk is much higher.
So, where does that leave you?
One thing you could do is to step out of your comfort zone and go for income that nets a return of much more than that. And when I say opportunity, I am not referring to get-rich-quick schemes. There are too many scams out there.
