Tips on how to be financially secure
MANILA, Philippines – Google “how to save money” and you’ll see pages and pages of search results with a variety of money-saving tips.
There are articles that will tell you to avoid buying signature coffee every day or to bring your own baon instead of going out for lunch. But building a financially secure future will take way more than that. You need to go bigger and aim for higher goals.
Of course, being responsible about how you spend your money is one obvious way to save but you should also find ways to grow your funds.
Invest, invest, invest
Having a savings account is helpful for keeping emergency funds and the money you use every day, but it is not for money that you want to grow. Regular deposit accounts earn low interest, so, if you have extra cash, it’s better to invest it.
You don’t need to burden yourself in selecting companies where to invest your funds. There are investment solutions managed by professionally trained investment experts that can do this for you. One of these investment solutions is called Unit Investment Trust Funds or UITFs which allow you to invest in a diversified portfolio.
For example, Asia has one of the world’s largest and fastest-growing bond markets and is expected to remain the bright spot of the global economy. For as little as PhP5,000 or USD100, you can already invest in bond markets paying guaranteed returns through the Manulife Asia Dynamic Fund Feeder Fund.
Or if you’re more confident about investing in real estate properties in Hong Kong, Singapore and Australia through real estate investment trusts (REITs), you can go for Manulife Asia Pacific REIT Fund of Funds. The Fund’s income distribution is released semi-annually, every January and July.
Aim for long-term potential return
We sometimes feel like it’s better to invest in something that will give us returns in the shortest possible time. It’s one way to avoid market drops, right? Wrong.
Taking a long-term investment view can give you a better chance riding out market volatility, allowing your investments to reap potentially higher rewards.
Make investing a habit (instead of a one-time thing)
Investing isn’t like shopping. There are no fixed price tags. Sometimes you get more from your money, sometimes you don’t. That’s why it’s important to invest regularly even in smaller amounts rather than making it a one-time thing.
It’s what experts call cost averaging. It’s when you invest at a time when the prices are lower, so you actually get more than what you pay for. And the only way to catch these movements and take advantage of it is by investing regularly. The good news is there are asset management companies like Manulife Asset Management and Trust Corporation that offer a Regular Savings Plan (RSP) facility to make it easier for investors to invest regularly.
Investing may sound like it’s a thing for the rich and those who are well-versed in the ins and outs of the stock market. Years ago maybe it was. Now you can take a nice dip into investing with as little as P5,000 or USD100.
There are so many products and services that can match your goals, needs, and even your ability to pay. All you need to do is make things happen by taking the first step in investing.
For more information about UITFs, you may click on this link. – Rappler.com
Manulife Asset Management and Trust Corporation (MAMTC) is part of Manulife Asset
Management, the global asset management arm of Manulife, one of the world's leading financial
services groups that traces its roots and investment management experience back to the 1800's.