So you’re ready to make your first big adult purchase? It’s important to consider a product’s present and future value. For instance, buying a car sounds convenient and practical now, especially if you dislike taking public transportation. But a car’s value depreciates over time—unlike that of a piece of land or a house.
While house prices greatly depend on location and type (whether it’s a townhouse, a condominium, a single or attached house, or a duplex), generally, the value or price of a house appreciates. According to the Bangko Sentral ng Pilipinas, residential property prices increased by at least eight percent in 2016. That means investing in a home now means you can sell it for more in the future.
Be a smart investor.
Saving doesn't just mean leaving your money in a savings account and using it for big purchases or emergencies. It's best to find avenues that can help you grow your money more efficiently. Invest in life insurance or stocks. Insurance will help your family members financially should something happen to you, while investing in stocks will give you a sense of security, especially if the market is good.
Monitor your expenses.
Having a monthly budget helps track where your money is going. To make monitoring easier, download a free app where you can list and budget your expenses. If you're looking to track how much you spend on utilities like electricity, subscribe to the Meralco Prepaid Electricity Service. Avoid bill shock by monitoring your consumption daily via SMS. You can reload your account with P100, P200, P300, P500, and P1,000 denominations.