Filipino Soldier from Saver to Investor

Philippine MoneyDo you consider yourself as a saver? Are you willing to take risk and invest your hard earned money? Well, before you answer these questions, let me ask you again, why are you interested to read this article anyway? Are you just plain curious or you really want to learn tips on how to level up your current financial status? Whatever reasons you might have, I would say that you have a potential to level up from being a saver to become a successful investor.

Get Rid of Debt

This is the first thing you should do. If you have a negative net worth, you will have a hard time to save. Eliminate debt as early as possible. It’s like being tied up by a rope. Escape from it and you can have your financial freedom.

Save, Save and Save!

Every successful investor starts being a saver. Like everybody else, Filipino soldiers would also like to have a brighter financial future. Even with a seemingly unending loans and expenses not mentioning the effects of inflation, most of them still save some of their money. Time has changed. Gone were the days that newly assigned soldiers in the field were financially irresponsible. Most of them were actually taught financial management by their seniors or superior officers during their military training.
In this connection, officers are already considered responsible for the financial status of their men. By the way, commanding officer’s approval is needed in order for the soldier to apply for loan. They sometimes disapproved loan applications if they noticed that the soldier is just wasting his money for unnecessary expenses. As a matter of fact, this is a very unpopular policy but I believe it is a necessity. This could even trigger an animosity between the officer and his subordinates especially if the officer wasn’t able to explain the reason why he disapproved the loan application. Fortunately, more Filipino soldiers are becoming aware of the importance of saving. Nothing is wrong being thrifty.

Know Your Objectives

How much will you set aside for your savings every month? For how long will you save that specific amount? What’s your objective? That’s some of the indispensable analysis that you should take into consideration when you save your money. Know your objectives and let it be your guide. Is it your objective to save for emergency funds only? If yes, then it doesn’t need to have an interest. Emergency funds need to be accessible anytime and anywhere. If you plan to purchase a high cost purchases like house and cars, you need longer time to save. How much and how long? Also, record everything including monthly and future expenses. In short, you will be the master of your own fate when it comes to crafting of your financial future plans. When everything seems to go smoothly according to your plan, you will definitely enjoy the fruits of your hard work and perseverance.

Increase Your Financial Literacy

If you become interested to get higher returns out of your savings, you are in the verge of entering a different level. First, learn how to invest. Go back to your objectives. If you already have an emergency fund and you feel secured enough with what you have, then this is the best time to level up. Filipino soldiers usually invest their money to military financial institutions like AFPSLAI, AMWSLAI and PAFCPIC to get passive income through dividends and interests. It is the safest investment for Filipino soldiers. You just let your money work for you. As time goes by, you build up your wealth. The money you invest accumulates and you will look for other investment institutions like commercial banks. This is the crucial part. Never invest in something you never fully understands. That’s why you have to increase your financial literacy. Study and learn. Read and interview. Now, I learned about investing to UITFs or Unit Investment Trust Funds offered by banks. BPI and BDO have the greatest performances so far. I would suggest you will try to study UITF and choose the best investment fund for you. Also, it’s also good to invest in Mutual funds. Just always put in mind that every time you increase your appetite for wealth, the risk of losing your money also increases. Bad investments are usually a product of bad decisions and little knowledge of the subject.

Finally, the most important question is when will be the best time to invest my money. If you think you already levelled up, my answer is- Now Na! The earlier, the better!

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4 Responses to Filipino Soldier from Saver to Investor

  1. besario says:

    at least sir huh!hehe

  2. Pingback: Shocking PAFCPIC Updates CY 2014 | A WISE FILIPINO SOLDIER

  3. harold says:

    You have a good point sir about the used of military financial institution is the best to invest like share capital contribution . I have read about stock market all a years. I realize the best is our financial institution that signify good higher dividend returns and tax free how about that.. Many solider don’t know our advantage with other. I think we should be wise on this. .please keep us sir .. please educate us more on financial education..

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