A Five Peso Daily Investment

A Five Peso Daily Investment

Do you believe, most salaried employees are unable to save enough money after their salaries?  Few are those who have discipline to save first before all other expenses.  And fewer who are not only a saver, but also an active investor.  Sadly, most Filipino employees are included among unable to save enough for investments.

A New Investment Strategy

Actually, not a unique idea.  It was already implemented years now, not only in stock market but also in other financial investment such pooled funds.  It was designed to be easy, affordable, and less riskier because of spreading the investment horizon.  But how come most people unaware of this strategy?  Not well-informed?

It isn’t, I think!

The culprit is not giving priority.

Ouch? Reality bites.

How about I’ll tell you to invest a five peso a day, doing it for five years consistently, then place it in a investment that may earn 6% per year?  Will you do it?

Five peso a day, is really a peanut on your wallet.

Unless you hardly earned P60 a day.  Which I doubt you can read my article!

Then, How It Works?

If you made investment a five peso a day, consistently for a month, you will have this figure:

P150.00 / month

Looks a tiny amount?

You can hardly buy a complete KFC Fully Loaded meal.

Then let us see if you continue this for a year:

P1,800.00 / year

Big enough? Congratulations! You just earned this in no single sweat!

So you are now ready to invest it? Yes you can do!

Let us give a conservative approach in investment return, let us say a 6% earning a year.  Your investment horizon is five (5) years.  And you choose to be invested in equities and high dividend markets:

P1,800.00 x  6% = P1,908.00 / year @ 6% interest rate

I created you a very simple financial calculator that determine compounded interests and earnings.  Here are the screen shot:

A Five Peso A day
A five peso a day investment using a simple Excel spreadsheet.

In no sweat, you just saved 5 pesos per day and doing this in 60 months (5 years), your P1,800.00 yearly savings will be earned over P2,500.  Enough to buy a ticket plane?

Imagine, what if you doubled your savings per day? Which P3,600.00 /year! Here is another screen shot:

A Ten Peso a Day
A Ten Peso a Day.  Higher earnings due to higher equity placed.

Now, are you motivated enough to try it? Then start it today!

The BIG Catch

The biggest catch or fall-out on this strategy lies within your self! No kidding!  It’s very easy, affordable, and much more risk-less.  It always fell-out due to your discipline and commitment.  Doing this for five years is not easy.  It takes higher level of discipline and motivation.

Other Purposes

You can do this strategy for these best purposes or reasons.  The below list will motivate you more:

  • Planned vacation abroad or locally
  • Appliance purchase such new gadgets, non-frost refrigerator,  inverter-type aircon
  • A new car
  • College education fund

Where to Invest??

It’s a big question.  Today’s era can easily access on the technology and other investment platform.   Here are my suggestions:

Again, there are no excuse to be a saver and an investor.

How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case. – Robert G. Allen


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Eleison Cruz

Financial Consultant. Personal Finance and Investment advocate. Author of The Good Asset, a blog that educates people in investments, financial literacy, and life insurance. Visit www.thegoodasset.ph

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