You will surely agree that there are very few important items that you can buy with Ten Pesos. Therefore, it should be very easy for you to save Ten Pesos a day. Saving Ten Pesos a day or Three Hundred Pesos a month invested prudently can earn you an average annual rate of 12%. At this rate, if you leave your money alone, and just let it “roll” it will compound and grow to a value of PhP66,600 in 10 years. Look at what happened here? Over a period of ten years, you actually saved only PhP36,000 and it grew to almost double the amount.
If you are able to continue this process for another 10 years, meaning saving another PhP36,000 over 120 more months, your savings will grow to PhP273,400, or almost FOUR TIMES more than the total amount of PhP72,000 you saved over 20 years. What if you can earn 20% per year instead of 12%? Then your PhP300/mo will grow to PhP101, 700 in 10 years, PhP731,700 in 20 years, PhP4.6Million in 30 years or PhP28.8Million in 40 years. And what do you have to do to accumulate this wealth?
SAVE AND INVEST ONLY 300 PESOS PER MONTH!
What’s the hitch? You need at least P5,000 to start on an option that can earn you an average of 12% per annum over the long term. Since the return is high, the risk is also high. Invest only amounts you can forget for years. Surely, you can forget Ten Pesos a day.
FRANCISCO J. COLAYCO is an entrepreneur, a venture developer and financial advisor. He has over 40 years of experience that covers service contracting in the Middle East, manufacturing, trading construction, shipbuilding, management consulting, banking and financial services. He is the Chairman of the Colayco Foundation for Education (CFE) and the author of bestsellers: Wealth Within Your Reach (2004 National Book Award for Business and Economics), Making Your Money Work (Nominated in 2005, National Book Awards Business and Economics), Pera Palaguin Workbook and Money for Kids. The books are available at National Bookstore, most other bookstores or directly from CFE. He joins our website blog to share with ordinary income earners, Overseas Filipino Workers (OFW) and students the simple principles to "Save what you earn and grow what you save." CFE conducts talks, seminars, and workshops. “Managing Personal Finances For The Future” a seminar-workshop developed in partnership with the Ateneo Graduate School of Business, Center for Continuing Education. June 21, 2008, Saturday, 9:00 am to 6:00 pm. For registration and inquiries, please call Marleth Calanog at 830-2050. CFE is also the producer of the PISObilities DVD series, available at your favorite audio-video shops in May 2008. Learn more about the advocacy at www.colaycofoundation.com, email info@colaycofoundation.com, via SMS +63917-8537333 or through (632)637-3741.
0 Comments
Add Comment