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Personal Finance 101: Where To Invest Your Savings

Personal finance coach Joe Ferreria shares a shortlist of simple investment opportunities that can boost the value of your savings.

"Lazy people can't be wealthy." This is the strong reminder of Joe Ferreria, president of financial coaching firm MoneyDoctors Inc. He emphasizes, "Hard work is the foundation of the growth of personal wealth."

Logically, one has to consistently save money to attain a sound personal financial condition. To do it more effectively, wise spending and frugality will be needed. And as most personal finance experts usually advise, it pays to put a portion or all of your savings into promising investments, which could possibly double or triple the amount in no time. 

For Ferreria, personal finance is all about these three words: earn, compound, and interest. Thus, he shares his own shortlist of simple investment options. Anyone who intends to make her earnings grow should consider any or all of these investment instruments:

Investment in debt

You can make your money earn interest by lending it to the government through the Bureau of Treasury. This is what fixed income treasury bonds are all about. You can invest your money in bonds with different tenors (terms) and high rates.

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Security and depleted risk are among the main advantages of this form of investment. You can also lend money to corporate entities and banks.

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Ferreria simplifies the meaning of stock market investments: It's a form of business ownership. "You can go to the most popular fast food chain and declare to yourself that you partly own that company through the shares you bought from it," he explained. 

These days, many financial experts assert that it's still the best time to invest in local publicly listed firms. The Philippine Stock Exchange (PSE) has been outperforming even some of the biggest stock markets in developed nations. 

But of course, if you invest in stocks, you should always be updated about stock market movements. You surely wouldn't want to significantly lose the value of your investment. Moreover, you'd surely like to grab opportunities to bolster your money. Profits are generated by selling shares at higher value than when you bought those. Some listed companies also provide periodic or occasional dividends as a form of distributing their profits to shareholders. 

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Mutual funds

How about investing your money in a company that also invests in various instruments like bonds, stocks, and foreign exchange? That is what mutual funds is all about. The mutual fund holds a big portfolio so that it can take advantage of the best investment venues.

In the process, such a fund lowers exposure to risks. It is like putting your eggs in different baskets. If a basket falls, you won't end up losing all your eggs because most of those are scattered in other baskets. Moreover, investing in mutual funds is ideal because the amount earns bigger interest in shorter terms than when it's left deposited even longer in a bank. 


Lastly, Ferreria recommends putting up sound and profitable businesses. Entrepreneurs can start new and promising ventures that will easily attain return on investment (ROI) in no time. But of course, that will require patience, optimism, and guts. Exposure to risks is inevitable. 

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If you're not confident to put up a new business, you may opt to consider franchising. This way, you can take advantage of a brand's popularity and strength so you can make sure your venture will be profitable. Buying and operating a franchised business is advisable to startup businessmen who are yet to gain business management experience. Franchisors usually have systems and practices that help ensure success of their franchisees. 

This story originally appeared on!

* Minor edits have been made by editors


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