I read an article stating that it will take 18 years for an OFW to save P3 Million so that he could return home for good? Assuming that he save part of his monthly salary alone or with the spouse is worth P13,800.00. Do you think it is only worth P 3 Million? Let us compute to prove this argument.
So Let us Multiply P13,800.00 by 12 months to get a yearly saving.
Yearly saving is P165,600.00
For 18 years, we will multiply P165,600.00 by 18 years.
In 18 years we have P2,980,800.00
Wow, it will take 18 years to earn that money and you lost that 18 years away from home. Would you wait that long to earn P3,000,00.00?
For me, I don't think so!
There are many ways to grow your money like building a small store, doing part time jobs and investing. Yes, you heard me, investing.
With regards to small business, don't be discouraged because although it is a small business but I think it will add more income to you and you can save more money. After all, millions started from cents or perhaps P1.00.
The problem of being an OFW is that it is hard to start a business without our presence. Most of the time it will go bankrupt due to mismanagement and etc. Real Estate is also a good investment depending on location. Real Estate is all about location, location, and location.
The best option for me is to invest in stock market. Although almost all gurus will say that there is no guarantee that you will earn income from it since the stock market is fluctuating. Many will tell you to stay away from stock market. Leave it to the expert. But base in history and it is really proven that in the long run, this investment will earn more interest than real estate. If you read the American stock graph and even in the Philippines, long term stock investment will beat inflation and other forms of investment. But of course, you have to diversify your investment too. As the saying goes, don't put your eggs in one basket.
I would suggest that you have to invest in stock market but if you are not that savvy on the stock, it is better to invest in the mutual fund just like me. Balance Fund which is has bond fund and equity fund will increase 15% average yearly but if you invest in equity which is stock market using the mutual fund, it will have a yearly average of 20%.
I myself invest in a mutual fund but purely equity. Of course, I experience up and down. But I am okay because I understand that it is normal for the stock market to move up and down for awhile but really, the direction is going up in the long run.
Why I invest in Mutual Fund instead of Stock Market? It is because I feel safe in it. Mutual Fund is composed of many companies that represent stocks. So if one company or stock is down or bankrupt, there are still other company to counter-balance it so the losses are minimized. If you invest in companies and it will close, all your money is gone. So that is the difference.
Back to the main topic why would I spend 18 years in abroad when I can grow my money faster by investing? Don't put your money in the bank, they will just laugh at your back. The bank will invest your money and they will get the high interest and you get the 1.5% interest yearly minus the 20% withholding tax on the interest so in reality, you will receive a 1.2% lol.
Here is the formula to compute your money if you up to work for 18 years abroad while investing the P13,800.00 monthly assuming a 15% since you invest it in mutual funds.
FV= Future Value of your Money
C= yearly money value invested or the money you save and invest yearly
I= Interest yearly
N= Number of years
So assuming C=P165,600.00 yearly invested
I= 15% interest yearly
N=18 years
We have
FV=165,600.00 X (1+.15)Exp 18-1)/ .15 X 1.15
FV=165,600.00 X 11.375453/ .15 X1.15
FV= 165,600.00 X 87.211
FV= P14,442, 275.00
You see your money will grow up to P14,442,275, not P3 Million Only!
The secret is investing and by doing so your money is compounded every year with 15% interest. This is just conservative computation.
Hope you find this article informative and good luck.
So Let us Multiply P13,800.00 by 12 months to get a yearly saving.
Yearly saving is P165,600.00
For 18 years, we will multiply P165,600.00 by 18 years.
In 18 years we have P2,980,800.00
Wow, it will take 18 years to earn that money and you lost that 18 years away from home. Would you wait that long to earn P3,000,00.00?
For me, I don't think so!
There are many ways to grow your money like building a small store, doing part time jobs and investing. Yes, you heard me, investing.
With regards to small business, don't be discouraged because although it is a small business but I think it will add more income to you and you can save more money. After all, millions started from cents or perhaps P1.00.
The problem of being an OFW is that it is hard to start a business without our presence. Most of the time it will go bankrupt due to mismanagement and etc. Real Estate is also a good investment depending on location. Real Estate is all about location, location, and location.
The best option for me is to invest in stock market. Although almost all gurus will say that there is no guarantee that you will earn income from it since the stock market is fluctuating. Many will tell you to stay away from stock market. Leave it to the expert. But base in history and it is really proven that in the long run, this investment will earn more interest than real estate. If you read the American stock graph and even in the Philippines, long term stock investment will beat inflation and other forms of investment. But of course, you have to diversify your investment too. As the saying goes, don't put your eggs in one basket.
I would suggest that you have to invest in stock market but if you are not that savvy on the stock, it is better to invest in the mutual fund just like me. Balance Fund which is has bond fund and equity fund will increase 15% average yearly but if you invest in equity which is stock market using the mutual fund, it will have a yearly average of 20%.
I myself invest in a mutual fund but purely equity. Of course, I experience up and down. But I am okay because I understand that it is normal for the stock market to move up and down for awhile but really, the direction is going up in the long run.
Why I invest in Mutual Fund instead of Stock Market? It is because I feel safe in it. Mutual Fund is composed of many companies that represent stocks. So if one company or stock is down or bankrupt, there are still other company to counter-balance it so the losses are minimized. If you invest in companies and it will close, all your money is gone. So that is the difference.
Back to the main topic why would I spend 18 years in abroad when I can grow my money faster by investing? Don't put your money in the bank, they will just laugh at your back. The bank will invest your money and they will get the high interest and you get the 1.5% interest yearly minus the 20% withholding tax on the interest so in reality, you will receive a 1.2% lol.
Here is the formula to compute your money if you up to work for 18 years abroad while investing the P13,800.00 monthly assuming a 15% since you invest it in mutual funds.
FV= Future Value of your Money
C= yearly money value invested or the money you save and invest yearly
I= Interest yearly
N= Number of years
So assuming C=P165,600.00 yearly invested
I= 15% interest yearly
N=18 years
We have
FV=165,600.00 X (1+.15)Exp 18-1)/ .15 X 1.15
FV=165,600.00 X 11.375453/ .15 X1.15
FV= 165,600.00 X 87.211
FV= P14,442, 275.00
You see your money will grow up to P14,442,275, not P3 Million Only!
The secret is investing and by doing so your money is compounded every year with 15% interest. This is just conservative computation.
Hope you find this article informative and good luck.
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