04/06/2025
"MONEY MATTERS" THROUGH THE YEARS
During the early 1980's, most of the commercial banks can give us an interest rate of around 20% per year.
To SAVE and eventually provide for our family's long-term financial [objectives] tulad ng retirement, college education ng mga bata, sariling bahay, sasakyan/kotse, etc., this % rate is good enough. Sa 12% per annum nga lang, even a savings of P3,000 per month will grow to more than P10 Million after 30 years--- matagal, but that's how compound interest works ('yung gusto ng mabilis, beware of scams and illegal schemes).
2017 na ngayon. Bank interest rates have gone down to less than 1% per year. Ang deposit mo na P3,000, para dumoble (o maging P6,000) will take about 72 years! Still, more than 90% of the earning population park their money in banks for long-term goals.
Then out of this, they pay for debts [bury]ing them alive at a rate of 42% per annum (legal rates for most credit cards; excluding hidden charges ~ 'yung small fonts sa kontrata that most casually skip reading, but is often the most important part). What's even worse is, mayroon palang nagpapa-utang at a rate of 5% every 15 days (per kinsenas)... that's 120% per year versus yung pera nila sa bangko earning less than 1% per year.
Mga kaibigan at mga kasama, you don't have to believe in "financial education" ~ it is not a religion. But whether you believe it or not, financial ignorance will always cost more and will continue to destroy, not just individuals, but real families.
May oras para sa lahat. Invest some of your time to learn/re-learn "money matters" and apply what you have learned.
19/07/2024