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02 June 2016

What are the top principles you want Filipinos to remember regarding SAVINGS? INVESTING?
I always emphasize that it is the obligation of every Filipino to build wealth in a market driven economy.  I say it is “easy.”  Some say, how can it be easy when there are so many poor Filipinos?
They are not able to grow their wealth because they do not know how.  Of course, the first step is to have a source of income.  For those who really cannot work and will not have any income for whatever reason, I agree that it is very hard and in fact, it is impossible to grow wealth.
I will just talk about those who can afford not to grow hungry if they set aside Php33 a day or Php1,000 a month on a consistent basis, invest the money in a fund that will earn 10% per annum and not touch that money for 30-40 years.  That money, barring any unforeseen incidents, will grow from Php2.1M to Php5.6M in 30-40 years.  This is possible and you can easily get the historical data on  But of course, you will say that I will not be around by that time so it is easy for me to say it because I will not be responsible if I am wrong.  Why should you believe me?
What if I am right?  You missed out on the opportunity to put aside Php33 a day that you practically throw away through junk food and fun games to get Php 2.1M-5.6M  in 30-40 years.  Even if your Php33 a day does not earn anything, you will still have Php360,000 in 30 years or Php480,000 in 40 years.
You might say that the peso will not be worth the same then as it is now.  Yes, at an average inflation rate of 3%, your Php360k 30 years from now is only worth Php148.3k today and your Php480k 40 years from now, only Php 147.1k today. This is precisely why you have to invest your savings properly.
But even if you don’t believe me and but still set aside Php30 a day without investing, it is still better to have PhP360,000 in 30 years or PhP480,000 in 40 years than nothing.
If you can just follow the rule:  Income minus Savings equals Expenses, you will be able to save your Php33 daily and learn to spend only that is left over.

Francisco J. Colayco is an entrepreneur, a venture developer and financial advisor.  He is the founder of Colayco Financial Education and the Kapatiran sa Kasaganaan Service and Multipurpose Cooperative which have developed businesses in Banking and Finance, Real Estate, Food, Agriculture and others.  He is the Author of Seven Bestsellers in the Pera Palaguin Series, the latest of which is now available in bookstores:  “Wealth Reached. Money Worked. Pera Mo, Pinalago Mo!” Find his works and catch him on TV and radio.  Check out:,,, FaceBook and Instagram.

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