Conservative Money Investing & Financial Illetracy

This is Part 3 of 3 of the Money Mistakes Among Pinoy Series

Part 1 | Part 2 | Part 3

I hope you are learning from our blog post. I have already discuss 2 money mistakes among pinoy which as follows

1.) Overspending / Not Living Within One’s Means – Part 1 of 3
2.) Credit Mismanagement – Part 2 of 3

Today I will discuss about Conservative Money Investing and Financial Illiteracy

What is conservative money investing, It is actually saving your hard earned money through banks. Let me explain this point, since I know that most Pinoy invest in banks thinking that their money is safe.

Investing in banks will give you an earning of 2% to 2.5% on yearly basis, and this earnings is taxable with 20% upon release by the bank.

Did you know that our country has an inflation rate of 3% to 5% based on history.

Inflation means the decrease of money value.

Check the picture below to understand about inflation.

Did you know that there are lots of Investing Vehicle that could give you a higher Interest Rate than the Inflation rate of Philippines.

As the saying goes, any Investment earnings lower than inflation rate is a BAD INVESTMENT.

Another Money Mistakes among Pinoy’s is the Lack of Financial Literacy.

I believe this problem is the most common problem among Pinoys.

Citibank Survey June 2011:

Filipinos’ Financial IQ = 48.9 /100

Filipino’s average savings in reserve = 9 weeks

Learning about Financial Literacy is a must to learn subject if you don’t want to retire POOR.

I also believe that if you FAIL to Plan, You PLAN to Fail.

If you want to know more.. you can email me in advance And I can discuss how can I help you increase your financial literacy and help you to plan your future.