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Savers are Losers

What's is your view on saving you money in the bank, do you think you are really growing your money with the banks interest? Or do you believe in this saying that "savers are losers"?

Comments

  • michymichymoomichymichymoo coffee drinker ✭✭✭
    As much as possible, one should not settle on saving in banks alone. Explore options like mutual funds, stocks, cooperative banks (if your company has one, lucky you!) :)

    Personally, I do not have a savings account. The only account I have is my payroll account. I have my cooperative bank account though, and mutual fund. Coming soon will be stocks. :)
  • KuyaDannyKuyaDanny Moderator PEx Moderator
    Think of your bank account as temporary parking for your funds which are waiting for good investment opportunities. Any interest earned is better than zero.
  • sarge05sarge05 Member PExer
    according to this post http://www.thebillionairewarrior.com/2011/07/05/pandesal-and-its-relation-to-your-savings/, putting your money in the bank will be much lower in value because of inflation. Instead of growing it because of interest, its value or purchasing power will shrink according to current inflation, which I believe is very true. So better put your money in bonds or stocks or any investment vehicle rather that depositing it in the bank.
  • Ice BurnIce Burn Conflicting Karma ✭✭
    Well putting it in a bank beats putting your money in bags at home.

    But I agree that it's better to look into investment options once a person has enough money to invest...
  • kaningbrownkaningbrown Member PExer
    Everybody needs a certain degree of liquidity. At the end of the day, money that you cannot spend when you need it is of no use to you.
  • P_UnderdogP_Underdog Member PExer
    How do you invest in bonds and mutual funds?
  • michymichymoomichymichymoo coffee drinker ✭✭✭
    On mutual funds, its same as investing for life insurance. I have some contacts of financial advisors, I can give you the contacts if you want. I invested in AXA, BTW. :)
  • KITHE ORTIZKITHE ORTIZ ♥Sun Life Advisor♥ PExer
    P_Underdog wrote: »
    How do you invest in bonds and mutual funds?

    It's easy to invest in Mutual Funds,
    http://www.sunlife.com.ph/philippines/Products+and+Services/Mutual+funds/Sun+Life+Prosperity+Funds?vgnLocale=en_CA

    or email me [email protected] :)
  • sarge05sarge05 Member PExer
    P_Underdog wrote: »
    How do you invest in bonds and mutual funds?

    Here's a good site that you can read and learn to invest in mutual funds, study first the product that they are offering and compare their growth over other listed mutual funds. Look at their performance for the past year and past quarter so that you will have the idea on what mutual fund you will invest your money. Also look for hidden charges, research on how much much they are taking from your money.

    http://www.pinoymoneytalk.com/mutual-funds/
  • sentrysentry Zerg Lurker PExer
    Ice Burn wrote: »
    Well putting it in a bank beats putting your money in bags at home.

    But I agree that it's better to look into investment options once a person has enough money to invest...

    ... and more importantly the knowledge to invest.
    Everybody needs a certain degree of liquidity. At the end of the day, money that you cannot spend when you need it is of no use to you.

    tama! liquidity is another commonly overlooked items same as insurance.

    wag basta i-invest yung emergency funds...

    in fact, maraming di nagme-maintain ng emergency funds...

    be aware sa time-frame ng investments, at sa liquidity options/losses. mahirap kung lahat ng pera nakatali.
  • sentrysentry Zerg Lurker PExer
    For deletion sana dahil double post... paano ba?
  • P_UnderdogP_Underdog Member PExer
    @sarge05
    Thanks! Kaso I realized na malaki pala investment sa mf. I'll go with bonds. Any suggestions (companies)? Tapos na bidding sa Bureau of Treasury eh.
  • sarge05sarge05 Member PExer
    @P Underdog

    Then you can invest with citiseconline's easy investment plan. What I know is that you can invest as low as 5thou for initial deposit and then its up to you how much you are going to add for the succeeding months. It works like a mutual fund also, its is a professionally manage fund by COL. Their EIP program performs much better with other investment scheme.

    https://www.citiseconline.com/Final2/B_home_new/HOME.asp
  • jonarddsjonardds Member PExer
    para sa kin, first you need to have an emergency fund...something that can be easily withdrawn kapag kailangan mo na like I mentioned in my blog post : Getting Ready for the Rainy Days.
  • TastyXtinaTastyXtina I Sh*t Glamour ✭✭
    during the first year of working, it wasnt on my vocabulary to save.. all i wanna do is so party, travel, shop...

    2009 with the help and advise of my mom, i was able to open up my first savings with bdo(now a substantial amount of money) and just this year psbank...

    im working with hsbc.. we are given the option to buy stocks 20% discounted @ 5.09."Pounds" since it's listed in london stock exchange.. by then stock price per share is 6.36 pounds per share..
    the plan i enrolled is 5000 per month for 3 years... as of today it's 6.30 market price per share, though bumaba ng 0.06 pounds nakakatuwang isipin na kita na ako agad dahil 20% discounted...
  • gUy^gUy^ MagKaKaHoY PExer
    lugi talga sa bank.. kahit saan angulo mo tignan.. what i do is rediscounting.. 5%-10% monthly.. pero syempre sa mga kakilala ko lang talaga.
  • knightraderknightrader Member PExer
    Savings is a major component of a financial plan. Without it, your hard-earned investments will crumble in unforeseen emergency expenses.

    You need at least 3 months of monthly expenses tucked away in liquid accounts like savings or checking. This is not for investing or inflation hedge. This is in cases of job layoffs or car repairs or heaven forbid, a medical emergency.

    Investments need time and it is foolish to cash them out @ the wrong time because you need emergency funds.

    The experts says 3-months of monthly expenses. I would prefer at least 6 months or even a year. Save enough to your "sleeping" level. he-he

    After you have secured a 6-month or 12-months worth of expenses in a savings account, you can begin to start investing to counter inflation and to provide growth for wealth and future income.

    Savings is an integral part of a financial plan. Do not attempt financial independence without it!! A fool and his money are soon parted... from Proverbs. :)
  • froshie1froshie1 Member PExer
    sarge05 wrote: »
    What's is your view on saving you money in the bank, do you think you are really growing your money with the banks interest? Or do you believe in this saying that "savers are losers"?

    Not really... I have a friend who's money is always in the bank. He doesn't believe in stock trading, mutual funds and other high risk investments... He always saves and puts his money in the double your money program of a bank. If there's no double your money, he puts it in a bank who has better TD rates. He lives a very comfortable life and can afford to pay a house and lot or condo in spot cash.
  • Max_BuwayaMax_Buwaya Member ✭✭✭
    We are currently on the first phase which is saving in the bank. In a few months upon reaching that ceiling of a year's amount of expenses, we will next be dealing with investments one at a time (a farm with seasonal harvesting, then bonds or stocks). I can't actually wait for it to come. I work in a bank and it's true, even for higher rates in TD, that putting all the money in a savings account in the long run will make one a loser because of inflation. (I wish our bank is like TastyXtina's.)

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