There are a lot of tips on how to save money in books, magazines, and newspapers. One of my friends here on Multiply, Randell Tiongson, is a Registered Financial Planner. He has a column in the Business Mirror which provides insight on how to save for the future.
This small post I have is merely a practical tip on how to apply what Randell advocates. Consider this a rejoinder on the item in my last post wherein the advise was:
Force Yourself to Save
One way to save more is to trick yourself. Transfer money automatically from paychecks into savings or investment accounts. With less available in your checking account, you'll be more careful about your spending. Gradually increase your automatic savings rate over time.
My practical tip is: Exploit Available Technology
Use Internet Banking Services. Use your internet banking account to manage two (2) separate accounts. Tag one account as your ("alkansiya" or "piggy bank" account). Transfer money into that account every now and then using the fund transfer facility AND, most of all, have the willpower not to take anything out of it! Cut the ATM card of that account if you wish.
Don't you dare transfer money out of that "piggy bank" account too!
reco any good piggy bank accounts? i'm thinking of going for a 5-year time deposit with BPI :-)
ReplyDeletethanks bro... yup, a very good tip indeed. just a quick tip, long term investments are great for retirement since you will get better yields, theoretically.
ReplyDeleterandell can advise you on it :-) @randell, ano ba reco mo?
ReplyDeleteon my end, i'm just focusing on the technical/practical side of things. regardless of the account and what it yields, i reco the internet banking service of Metrobank and HSBC
In my opinion, choosing an investment will depend on three important factors:
ReplyDelete1) Investment Objective
2) Time Frame
3) Risk Tolerance
TD's are very safe and good for liquidity purposes, however, don't expect much capital appreciation.
I have an interesting article coming out in the September-October issue of Moneysense Magazine -- it's about retirement. Chinkee's book is featured in the current issue.
ReplyDelete1) Investment Objective - i just want to make my money grow (exponentially if possible, hehe)
ReplyDelete2) Time Frame - mid to longterm
3) Risk Tolerance - sadly, i'm quite risk averse
been thinking about getting BPI's 5-year TD...
If you can't tolerate risks, you will be limited to fixed income securities, like TDs. However, TDs are not your only choices. There are better yielding instruments for your needs. Check out Special Deposit Accounts (SDA), Retail Treasury Bonds (RTB), Tier 2 offerings, or even Bond Funds (UITF or Mutual Funds) - the 5 year period will smoothen out the volatilities. In my opinion, TDs are only good for short term, up to 90 days. If your banker is not aware of those that I mentioned, change your banker, haha.
ReplyDeleteHere's a good tip, check out Standard Chartered 3 year structured note, it's in Australian dollars but I understand it rakes up 9%, not bad. Another option is SMIC Bond, you can go to BDO for that. You may also want to check ROPs (n USD), rates are pretty good considering its a sovereign offering.
ReplyDeleteWow, I do get too excited with these things don't I? Sorry for the hi-jacking of thread.
do whatever makes your clock tick! =)
ReplyDeleteok lang kung hinijack ang thread.
ReplyDeletedep, as confirmed, malakas talaga ang AUS$. randell concurs with what we spoke of a month ago