4 Ways How Filipinos Can Make the Most Out of Their Savings

How You Can Make the Most of Your Savings

1. Invest in stocks or mutual funds
   
   In a nutshell, stocks are small shares of companies that people can buy through the stock exchange. On the other hand, a mutual fund is a pool of money that is handled by a professional fund manager, who invests that money into a portfolio of stocks, bonds, etc.
   
   Stocks and mutual funds both have varying levels of risk, but unlike a savings account, the money you invest can grow at a larger rate. The main difference between the two is that mutual funds are less risky because of diversification. That’s why mutual funds is the recommended option for those just starting to invest.
   
   Take note of the nature of their industry, the number of shareholders they currently have, their performance over time, and the possible profit you can gain.
   
   Whether you go for an option that has low-risk with low-reward or high-risk with high-reward, profit will be ensured if you carefully plan your investment.
   
   
2. Get insured
   
   It may seem counterintuitive to spend money now on insurance when your goal is to curb your expenses. But in the long run, paying for small premiums for an insurance plan can actually save you more money compared to paying for a hefty medical bill by dipping into your life savings.
   
   That said, the real power of life insurance is the peace of mind in knowing that your family is free from financial burden in case something unexpected happens to you. In addition, products like Dollar Protect Plus combine the benefits of life insurance with investments, so your money has a potential to grow over time, which you can withdraw as part of your retirement fund.
   
   Which brings us to the next point…
   
   
3. Save for retirement
   
   Planning for retirement should start as early as now.
   
   Clearly define what your financial goals are for all stages of your life. Keeping your retirement plans in mind should guide your financial behaviors accordingly, allowing you to live a comfortable life when the time comes that you decide to stop working.
   
   You can create a separate Personal Equity and Retirement Account (PERA), and take advantage of growth potential and tax incentives. You can also consider Variable Universal Life (VUL) plans to build a sizable retirement fund.
   
   To find a retirement plan that best suits you, contact us today!
   
   
4. Set up a small business
   
   If you’re feeling more adventurous and have enough capital, setting up a small business can serve as a great secondary source of income. Starting a business may be just as intimidating as investing in stocks but planning for it step by step will ensure its success.
   
   Find something that you’re passionate about and try to come up with something from there. Aside from gaining profit, creating a business will also give you a sense of fulfillment. If you find the business of another person attractive, consider investing in shares or potentially franchising one or a few branches (if they have that option).

Make Your Money Work for You

The first step to a comfortable life is to let your money work for you. Once you’ve saved up enough, you should look for investments that will allow you to achieve your goals. Managing your money correctly will not only give you a lot of financial breathing room, but it will also give you and your loved ones comfort and security even after you are gone.

For more information, send us an email or call our customer care hotline at (632) 528-5501. Or better yet, visit any of our 900 BPI branches nationwide, and ask one of our Bancassurance Sales Executives to help you come up with the best way to make the most out of your savings.