Why Savings on Bank is not a Wise Investment

By: JuanCho D.

As of 2011, 500 K out of over a 90 M population that makes  a very small percentage – roughly 0.005% of the population who have Invested their money out of the bank.^a Two reasons expert like to believe is ignorance and fear are the driver factors pinoy’s get rid or don’t have access of higher investment rate. The following should be considered why you should invest on higher rates than the banks offer.

Inflation

Inflation ay ang pagbaba ng purchasing power ng pera at pagtaas ng bilihin, goods or services. As of 2014 ang pinas ay may average na 4.20 % inflation rate^b. Ang banko ay nagbibigay lamang ng pikamataas na .25% interest rate. Ibig sabihin kung may pera ka sa banko as of 2014 lugi kapa ng 3.95% dahil sa inflation rate.

Ginisa sa Sariling Mantika

                Sa palagay mo ba pinapatulog lang ba ng banko ang pera mo?

                Bakit yumayaman ang banko?

Syempre obvious pinapalago din nila ang pera mo. The law of compounding interest, the bank and wealthy individual’s secret is beyond your reach.

Below table of interest rate which is beyond your reach.

Now do you still believe in Hard work alone? It’s obvious why Robert Kiyosaki said “Don’t work for money let money work for you”. Kiyosaki’s point is raising your Financial IQ is the total solution to get out of the Rat Race and reach your dream Financial Freedom.

                                                                                                            

“It’s not the investment that is Risky It’s the Investor itself” -Warren Buffet

Lack of Financial Education is the main reason why roughly 0.005% of the population only invested their money out of the bank for higher interest rate.

“Ignorance is an Expensive thing” from the figures presented it is clear evidence that most the population are losing money. They are being robbed by those powerful, financially literate without their knowledge. The elite get more power and wealthier. Eto yung sagot bakit dumadami ang mahihirap, lalong naghihirap at mas lalong yumayaman ang mga mayayaman.

Protect yourself, financial education is the best investment you can have. Understand how money works in the world, manages to earn or make it, manages it, invests it (turn it into more). More specifically, it set of skills and knowledge that allows an individual to make informed and effective decisions with all of their financial resources.

References:

a: http://www.randelltiongson.com/pinoys-and-the-stock-market-part-2/

b http://www.tradingeconomics.com/philippines/inflation-cpi