22/01/2023
Advise from multi Billioner
Ramon Ang President and Vise chairmen of the Philippines oldest conglomerates, San Miguel Corp.
#1. INVEST ALL YOUR MONEY IN BUSINESS.
- The younger you start, the younger you become wealthy.
- Make your money "works" for you: Business create money, job and opportunity. Investing is an effective way to put your money to work and potentially build wealth. Smart investing may allow your money to outpace inflation and increase in value. The greater growth potential of investing is primarily due to the power of compounding and the risk-return tradeoff.
- Investing: is the act of purchasing assets or goods with a goal of generating income and appreciation. Investments, which are assets or goods purchased, are used to create future wealth. Often, these goods are in the form of stocks or bonds, but can also involve real estate or alternative assets such as cryptocurrency or gold.
- Compound interest: With investing, you can take advantage of compound interest. Compound interest is the interest you earn on your invested money plus the money earned in each prior period. It is sometimes called “interest on interest.” Compound interest allows you to grow your wealth quickly.
#2. DO NOT PUT ALL YOUR MONEY IN THE BANK.
- Your money in the bank will degrades in value due to inflation. If the rate of inflation is higher than the interest rate you are earning on your money, you may actually lose purchasing power over time by keeping your money in the bank.
- Your money is not "working" for you they work for others: Interest rates are often quite low, particularly for savings accounts. This means that you may not earn much in the way of returns on your money by keeping it in the bank while the bank use your money to invest from other business and earn from it.
- Limited investment options: Banks typically offer a limited range of investment options, such as savings accounts, CDs, and money market accounts. These options may not offer the same potential for growth as other types of investments, such as stocks or real estate.
- Risk of loss: Finally, it is important to note that even though banks are generally considered to be safe places to keep your money, there is always a risk that you could lose your money if the bank fails or is unable to meet its financial obligations.
#3 NEVER SPEND MORETHAN YOU EARN
- Avoid the dept trap: Spending more than you earn is an easy way to accumulate debt.
It's hard to save any money if you are overspending. Getting in the habit of overspending and living outside your means can have a negative impact on your financial health, resulting in: A cycle of debt that can be difficult to break due to interest owed. An impossible environment to save for retirement as you try to keep up.
- Spend less , save more: If you want to reach your financial goals, one of your top priorities should be is to spend less and save more: hat means, you need to create a money habit that should be part of your lifestyle. Start budgeting with Every Dollar today! A zero-based budget is the best way to keep your money flowing in the right direction: toward your goals. Spending less means you have extra cash for purposes like savings and investing, while helping yourself to avoid unnecessarily getting into the trap of dept.
- Lifestyle inflation: It occurs when your monthly expenses increase as you earn more money. Spending more money even though you earn more can become a problem because it limits your ability to build wealth.
- Lack of self-esteem: People who have lack of self-esteem turn to things that make them feel better about theirselves. Shopping to fill an inner void can easily cause people to spend more than they earn. Clothes and accessories made her feel pretty and therefore she continued to spend to keep herself temporarily happy.
#4 SAVE MONEY FOR THE FUTURE
- Saving money is vital: It provides financial security and freedom and secures you in a financial emergency. By saving money, you can avoid debt , which relieves stress. It also helps navigate tricky situations, meet financial obligations, and build wealth. If you want to focus on building wealth, you must save money. When you do so, you develop excellent financial practices and increase your cash reserves. It also helps you invest, which is the only way to build actual long-term wealth.
- Emergency Fund: provides financial security in times of need. It can help you avoid using credit cards or taking out high-interest loans. Navigating through a financial emergency in good shape serves as a useful reminder of the value of preserving money.
- Educational Fund: The cost of education is increasing. Each year, student fees rise, making it more difficult to pay for education without going into debt. It is challenging, but with proper planning and commitment, you can ensure that your children graduate from college debt-free. Having a minor savings account is your best bet.
- Marriage Fund:
Marriage is an expensive event, but saving money from an early age can help. It is the only way to get the wedding of your dreams, without getting in debt. (Kaya mag-ipon kana kahit wala ka pang Jowa😂)
