Reasons Why You Should Not Rely On Your Income

January 26, 2018

When you think of the “now” more often than not, investing is the last thing you will think of. Why? Because you feel healthy, you have a regular job, so you think it’s not necessary to invest for your future.  Most people say, “I don’t need to invest, as long as I keep my job I have money” especially those who have HMO as part of their benefits. Remember, nothing is permanent in this world.  Yes, you may be earning good today but as you age, you become prone to illnesses and uncertainties in life and you also have to think about what will happen to your kids and loved ones.  Of course you do not want to be caught off guard, right? In a typical Filipino family setting, the children are expected to shoulder the expenses for their dependent parents’ basic needs including maintenance medicines, hospitalization, etc.  But we have to remember that we are not our children’s responsibility.

We talked to a few people around to get their insights about investing.  Here’s what we have gathered:

Profile 1:
Earning more than P20,000 a month
27 years old

“I don’t invest because I don’t have enough money”

Profile 2:
40 years old

“The reason why I’m giving the best care I could give to my children so that when I get old it’s their turn to take care of me.  Anyway, I am also my husband’s beneficiary in his SSS pension”.

Profile 3
Earning P15,000 a month
23 years old

“I have started investing because someone advised me to start at an early age.  When I retire, I want to live comfortably.”

Profile 4
45 years old

“I have investments for my children, I want to make sure they’re okay when I’m gone.”

Different people have different opinions on investments.  No matter what your status in life is, it is more important to prepare, as early as now, than to be sorry later.  Whether we like it or not, we need to prepare for the  four inevitables in life – sickness/illness, disability, old age and death.

Here are the different types of investments which you may want to consider no matter where you are in life now.  

Stocks mean you become a part-owner of the company.  You buy stocks when the company is listed and is, selling their shares.  Amount per share varies.  You earn through dividends, growth in earnings and change in valuation.  Earnings depend on the economic performance of the company.  Be sure to make a thorough study before buying your shares, it takes a level of understanding before you decide to get into stocks.  Choose among the top performing!

Real estate refers to the properties which you buy & sell, or build & sell. You may also acquire a lot, build a 6-door apartment and have it rented to have a rotating income.  When you invest in real estate, prepare yourself in spending huge amount of money for capital and at the same time for maintenance and care for your property.  Start building your wealth!

Insurance means protection from financial loss.  These days, people who get sick and ill are getting younger and younger.  Even healthy and athletic persons may be stricken by it. This may be due to the food we eat, stress from work or even the pollution in our country.  Sickness may also be cause by accidents which can happen anytime to anyone.  After an accident, we couldn’t tell if we can still work and be productive or be totally disabled.

Getting old and even death is also unavoidable, it will come whether we like or not,   and we have to face it or even better, prepare for it as early as we can.  

Most people think that Insurance is only for rich and that it’s very expensive.  Actually, it is not.  Paramount Direct offers insurance with different coverage, depending on your needs.  One of which is the Guaranteed Life Plan which has terminal illness, life and accidental death benefits.  This product is for people from age 40-75 years old, for as low as Php151 per month get the protection you need until age 100!

Are you ready to invest? Don’t be scared or intimidated.  Investment is not only for well-educated people.  This is for all!

For more tips on how to have a wonderful year ahead, click here: 3 New Year’s Resolutions to Include Your List