WHAT’S the difference between you and a billionaire?
You and a billionaire both have 24 hours a day. You and a billionaire are both working hard. You and a billionaire both have the ability and the motivation to create wealth.
But what makes a billionaire stay ahead of the game? FINANCIAL LITERACY. They know how to make money and most importantly, the billionaires know where to put their money that even in their sleep, their hard-earned money works for them.
Do you want to know where the rich put their money?
Here is PART ONE of the 10 PLACES WHERE THE RICH PLACE THEIR MONEY.
- Savings Account
Most of the ordinary people put their money in a jar, a piggy bank, or in some hidden corner of their house. Their money is just stashed away at home. This makes money so tempting to spend because it is just an arm’s reach.
The first step in becoming rich is opening a savings or a current account. More than securing your money in an insured institution, you are also giving yourself a distance from your precious savings.
In this setup, you are less likely to spend it because it takes so many steps to access it. Aside from restricting yourself from spending, a bank account is your footprint in the finance ecosystem.
It mobilizes your money for your bills, business transactions, and emergency funds, etc. If you want to thrive financially, then participate in the financial ecosystem.
- Time Deposit
Time deposit is a sure way to grow your money. With this, you can earn based on the fixed interest rate if your money reach the predetermined maturity period.
Time deposit yields higher than the savings account, but both are protected by the government or PDIC. This means that even though your bank closes, the government will return your money up to R500,000.
If you have extra funds which you know that you won’t need anytime soon, it is best that you put it in a time deposit and let your money grow without putting any effort.
The rich also place their money into bonds which represents loan made by the government or a private entity. This is also an investment that has a predetermined interest rate, thus, your income is guaranteed. This is also a safe investment because this is protected by the government.
- PAG-Ibig MP2
If you are a PAG-Ibig member, you can now invest in the agency. You can lend fund to PAG-Ibig based on your contributions. The agency will pay you back at an interest. However, the interest rate is not fixed and the profit is not predetermined.
But according to last year’s records, PAG-Ibig paid their members who availed themselves of the program at around seven to nine percent interest rate. Another good thing with PAG-Ibig MP2 is that the agency will not close anytime soon, therefore, your money is protected by the government.
- Mutual fund/UITF
Mutual fund and or Unit Investment Trust Fund are good investment vehicles especially for newbie investors. Your investment will be pooled with other investments and will be managed by a professional fund manager.
Your money will be invested in securities, bonds, stocks, money market instruments, and other investment vehicles. You just need to buy shares of your desired mutual fund from licensed agent such as insurance companies and stock brokers.
UITF is somewhat similar with mutual fund but it is managed by a bank. You can inquire with your bank about their UITF offerings.
What is good with mutual funds and UITF is that you may not need to stress out so much about your investments. The fund manager will take care of your money for you. These are good investment vehicles if you are busy and does not have time to learn the nitty-gritty of investment.
Another good news is that many people have profited so much using these investment avenues. They were able to secure their future, especially their retirement years, because they wisely put their money in places that can make it grow.
If you want to learn more about investment, my special program called “How to retire at 50” is the right way to start.
You can learn about mutual funds, UITF, real estate, stock market, and other funds and investment vehicles. To know more, please go to chinktv.com.
Join now and know the secrets of the rich so you, too, can be rich!
THINK. REFLECT. APPLY.
- How do you manage your finances?
- Are you open to investing in these investment vehicles?
- What investment vehicle, in particular, are you most interested in?
If you want to learn more on how to develop a good habit of handling your money. Please follow me at my YouTube account at CHINK POSITIVE.