It’s not what we earn but it’s what we save and invest (Part 2 of 2)


There are ways if we change our minds and set priorities in saving. If we develop the habit of saving, we can now have funds to start investing. If we start investing we can make our money grow. This is the stage of our life that money will work hard for us.We can take advantage of compounding interest. It means that if you invested Ph100 this year and it earns 10%, it will now be Ph110. But next year when it earns 10% again, the base will be now the Ph110 not the Ph100. It means interest on interest. Even if we work hard to our job or businesses, money can work harder for us. It’s wiser move than always depend on a single source of income. As Warren Buffet said that never depend on single income, make investment to create second source of income.

We have to understand that there are two categories that we can choose when it comes to investing, one is Lending type of investment and the other is Owning type of investment. If you go to a lending type of investment ,it is designed to use for your short-term goals, just like if you open a bank account or putting your money in a time deposit account. This means that you are simply lending your money to a financial institution,therefore, it will give you low returns like less than 2% per annum, but of course it is low-risk type of investment.  In a short term financial instrument, you can use your money right away, for example you will be needing your money for the next 2 years to 3 years. While on the other hand, there is the Owning type of investment. It means that you will be like the owner of the companies that you will be investing at. Let’s say that you put your money into a financial instrument that will be invested at the stock market where it will be distributed to top corporations in the Philippines like in Jollibee, San Miguel Corp, BPI, Metrobank, etc. You are simply buying business and if they will earn, you will earn also. This type of investment is designed for long-term use. Let’s say, a person is saving for his children’s education, he can put his money to this owning type of investment because he will not need the money for the next 1 year to 5 years but he will be using it for the next 10 years to 15 years when his children will go to college. Owning type of investment is high-risk because it can fluctuate from high to low, the investor should be aware about it. But in the long run, it can give high returns like 15% to 20% per annum if you will cost average it.


Which is better? Lending type of investment or Owning type of investment? It really depends on the person who will be investing. I have known one client of mine that I give high regard to and he is now 52 years old, 13 years from now, he will retire.I asked him if he is prepared for his retirement, he told me that he has his money in time deposit and it has been there for almost 25 years. I told him that his money is not earning there. It is a big mistake that we put our money to a financial instrument that will give less than 2% but that funds will be used after 30 years for retirement funds purposes. What I’m saying is short term goals should be invested in short term financial instrument while long term goals should be invested in a long term financial instrument. We have different set of goals that we need. Some people will choose low-risk investment or high-risk investment. It really depends.  If you have financial goals that you will be needing for the next 10 years to 15 years, I suggest that you put it in a financial instrument that can give you higher returns, do not put your funds in a short-term financial instrument that will give you low returns because you will simply lose your money and it will not grow.

As a Financial Planner, I always ask my clients if what are their financial goals, from there  I can advise them where they can put their funds in order for them to achieve their financial goals in the future. Investing is risky but if we are mentally, emotionally and financially prepared we don’t have to panic if the stock market will go down. If you will stick to your plan, you will definitely achieve your financial goals. We just have to remember that if we are going to start investing, the money that we will invest should be our excess from our savings. So that, you will not be emotionally attached to that money, otherwise, you will always be worried if all of your money is invested and you don’t have any funds left. So, it is wiser that after creating a habit of saving, we now go to investing so that we make our money work for us. Even if a person has stable income but never saves and invests, he will never be financially independent, money  will be spent only.

Thank you for reading my blog. I hope that you learn something.I look forward that you read my future blogs.

Let’s spread financial literacy to our fellow Filipinos.

God bless!


To learn more about Financial Literacy, you may contact me.

Archie M. Yuki

Associate Unit Manager/Financial Planner

The Insular Life Assurance Ltd. Co

Mobile Number: 0917-5769607

Email address: archieyuki30@gmail.com


It’s not what we earn but it’s what we save and invest.(Part 1)

It’s not what we earn but it’s what we save and invest (Part 1)

Have you ever known people who really work hard and we know that they earn a lot? But at the end of the day they don’t have savings? It’s normal that if our income increases our expenses will increase as well. You may see that they have latest high-tech gadgets, branded shoes, clothes, amortization of the house and car, eating at fancy restaurants, travelling here and abroad, and a lot more. I’m not saying that it is not good to enjoy our hard-earned money, what I’m saying is that we have to have a financial plan. Not to the point that we will borrow money just to buy things that we want and to impress people that we can afford or just to be in. In our world today, CONSUMERISM is prevalent. I want it now! Get it now and pay later. It’s like having your own credit card is cool, thus, when the pay check comes in, most of the salary will simply go to pay all the bills. We have to practice delayed gratification than instant gratification. I have a friend told me that his salary is just like onions, “Pag pinag-hatihati mo na ay siguradong maiiyak ka”. It’s a sad fact that most of us do not value savings. I have a classmate before in one of my classes at MBA, she told me that she doesn’t have savings and she’s kind a proud about it. As if it’s an accomplishment. I told her that what if she lost her job, what if she gets sick, what it there’s an emergency that you have to pay something? How about your funds in the future? We are not going to work for life. Are we? She simply said, “Bahala na”. This is a statement of a person that does  not have a financial plan. We know the fact that life is full of risks like death, sickness and retirement. As they say, if you fail to plan, you are planning to fail.

We Filipinos should value savings, as a Financial Literacy Advocate, I always tell to my clients, friends, loved ones and relatives  that we have to live only at 80% of our income and 20% should go to saving and investing. Ideally, we should have at least 6 months of our monthly income at the bank for the emergency fund and on excess of that we have to start investing.  I always believe that it’s not about how much income we have because it is about our attitude in handling our finances. We can always have ways how to be frugal in our lives.  My lovely wife shared a story with me about her officemate that is always come to work late. What she does is she always takes a cab from her house to work. You can imagine how much would be her transportation expenses everyday, it would cost her at least Ph150.00 a day, so in a month, she will spend for about Ph3600 (Ph150 x 26 days) for her transporation just for one-way trip going to her job. What if she just shifts her mind that she leaves early from her house going to work? What if she wakes up earlier? I believe she can save. Probably if she will take FX going to her work , it will cost her less than Ph60.00. She can save Php90 per day, and if you compute that in a month, she can save Ph2,160 per month (Ph90 x 26 days).  We have to start somewhere to set a portion of our income that will go to savings. Pag gusto may paraan, pag ayaw may dahilan. If you can’t start at 20% savings, start it with 10%, if it still not comfortable, you start it with 5% until you create a habit and eventually you can increase your savings through disciplining yourself. We are creatures of habit, once it will be our habit, we will be used to that. Create a habit that will be beneficial to us. It is all about our attitude about handling our finances, as the bible say, if we can be trusted in the small things, we can also be trusted in big things. There are ways if we change our minds and set priorities in saving. If we develop the habit of saving, we can now have funds to start investing… to be continued

God bless!

Thank you for reading my blog.

Let’s spread Financial Literacy to our fellow Filipinos.

Contact me if you would like to know more about Financial Literacy Program of Insular Life:

Archie M. Yuki

Associate Unit Manager

Licensed Financial Advisor

The Insular Life Assurance Ltd., Co.

Mobile Number: 0917-5769607.

E-mail address: archieyuki30@gmail.com