Saving is not really the focal point in acquiring wealth. We have this way of thinking that saving is the key to financial stability. Spending less is not the way to achieve Financial freedom. Devoting all your extra cash to your savings account might not be enough if you are aiming for a good fortune in the near future.
Here are two things you can ponder on:
1.Savings account have low yields.
If you are a beginner, you are only given 0.25% interest per annum. For instance, you are able to put P50, 000 into your savings account. As a result, you will only be given P125 interest. Imagine how painstakingly long it will take for you to grow your money.
2. Savings accounts don’t do much in fighting inflation.
Way back 2013, core inflation in the Philippines reached 2.7%. So given the previous example, if you have P50, 000 in your savings account with 0.25% return rate, it only means that your money is at risk of losing its value over time.
Yes, saving alone won’t make you rich! Here in Vidalia Lending, you may choose to Invest in our manage peer-to peer Investing. With as little as P5, 000, be able to earn fixed monthly returns. Placement terms are 2, 3, 6, 9 and 12 months. 100% ROI.
But with this given statistics, I am not implying that saving is not a good way to stabilize your financial needs. It is not necessarily a bad idea, but it won’t suffice your goal in achieving that financial freedom in the future. Although it might not be your one way ticket to success, still it will be of advantage if you have other financial goals:
1. For short term needs and emergencies.
Savings account are quite accessible. If it comes to a time where you would need urgent funding, you can easily have a hold of your own money through your own account. It’s a perfect way of allocating money for your planned vacation trips, christmas shopping or even unexpected events.
2. It allows you to focus on your bigger goals, such as Investing.
Having a healthy savings account enables you to worry less about your financial expenditures and in managing your cash flow. Knowing that you have money to cover future emergencies allows you to pursue even greater financial possibilities.
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