June 12 is coming, we will now again celebrate our Independence Day. I’m thankful that we now enjoy the independence that we have today. But as a Financial Planner, I have a mission;A mission to help our fellow filipinos to have Financial Independence. With regard to this,Philippines has gone far from being a third-world country,we are now considered a developing country. Philippine Economy is really growing. Have you not noticed it? To some, they say Philippines has no hope because of the corruptions that what we see and hear in the news. For me, I choose to look at the bright side of the story. I always think of there will be always hope to our country with God’s help. We can really see and feel that most of the Filipinos now are benefiting to the growth of our economy. I heard from Randell Tiongson that we are now in the stage of Demographic Sweet Spot, it means that there are more than 1 Million 25-year-old professionals now are earning and it gives growth to the economy. It’s the same stage when the Baby Boomers started earning, thus, it contributed well to the growth of the US Economy.
We have to understand the facts that there are economic drivers that can make our economy grow for the next 20 years to 30 years. We are the 2nd fastest growing economy in the world, next to China as reported in Bloomberg. http://www.bloomberg.com/news/articles/2015-02-25/the-20-fastest-growing-economies-this-year Have you also heard in the news that the Euro Nations borrow from Philippines’ IMF Fund? http://www.randelltiongson.com/euro-nations-borrows-from-philippines-imf-fund/ There are economic drivers that I can say that we are in long-term growth. First, the OFWs remittances, it is reported that Filipinos are receiving billion of dollars here in the Philippines. What does the usual Filipinos families who receive these remittances? Of course, they will spend it. I have a friend that told me that he has a friend that his parents send him money monthly and what he does is he just spends it. He has 2 cars, condo unit, just shop around, drink and party. He told me once that I might want to join them every Friday to drink and party with them, but I refused to go because I don’t drink. I don’t see that for the next 20 years or so that these remittances will decrease, but it will increase. Second, we know the fact that Business Process Outsource business is growing, in fact we have overtaken India.http://www.ft.com/cms/s/0/1658baac-f30a-11e4-a979-00144feab7de.html#axzz3cNHRvAhE It’s also billions of dollars that come to our country. I don’t see that the growth will decline for the next 20 years. Thirdly, there are now PPPs (Public-Private Partnerships) that has begun. It has created a lot of income opportunities for the Filipinos because of the jobs it has generated.
So what does this mean to us? That our economy is growing? It means that there are so many opportunities for us here.Most of the Filipinos now have disposable income. Thus, it is also good for our economy that we filipinos are spender but it is wiser if we invest as well. Instead of spending all our money while we earn from our job and business, we take advantage in investing. From the mindset of being spender, change to saver and to investor. Hindi na tama na laging ang mga dayuhan na lang ang laging kikita sa bansa natin! Tama na, sobra na, tigilan na! We can take our part as well through having Financial Literacy. Without Financial Literacy, Filipinos will just lose their money.
If we take a look at this assumptions from investing in a Financial plan that gives compound interest of 20% per annum, it can give us higher returns. You can just imagine investing only Ph800,000 for ten years and it will be at Ph11.9M after 20 years on a compound interest of 20% per annum?
That’s why my advocacy is to have inclusive growth to all the Fiipinos. It means that all class of the society will have growth in financial status through investing.Not only from Class A and B but if it is possible from all the classes. In our company,we have security guards and janitors who who have their own investment.They understood that if they don’t invest now, they will just spend their money. I can proudly say that I’m in company that is Filipino-owned that when our company earns, it will be invested here in the Philippines which it can help our economy, unlike if a foreign company, if they earn, they will bring their earnings to their mother country and invest it there.
After reading this blog,we have to take advantage of our economy for us to reach our financial goals in the future. I know that what I do is counter-culture. A lot of people will disagree with me that they think that they will not lose their job, they are still young, retirement is too early to prepare,they will not get sick, YOLO(you only live once), Buy now and pay later, etc. But one thing I can say, there are three types of person when it comes to seeing an opportunity : those who make things happen, those who watch things happen and those who wonder what happened. I hope that you are the first person.
Thank you for reading my blog.
I look forward that you will read my future blogs.
Help us to spread financial literacy to our fellow Filipinos.
God bless you!
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: firstname.lastname@example.org