What Do I Do With My Savings? | Edukasyon.ph
Grown-up Guide

What Do I Do With My Savings?

Not everyone has it “figured out” especially when it comes to money. Not knowing what to do with your savings is something all of us experience and it’s not entirely a bad situation. After all, you do have cash right?

However, everybody has a strong opinion when it comes to the subject of money. It may be our friends, our loved ones or even our classmates because let’s face it, knowing a thing or two about finances and accumulating wealth can make us all look like a big shot – and who doesn’t like that?

You may have heard advice along the lines of (Invest in real estate!) or (Invest in stocks!”)These tips are not wrong but, when it comes to your savings, the best way to start is to plan and recognize where you want to go – financially.

Foundation = savings.

Picture your life as a house: is it sturdy, beautiful or Victorian? Whatever it is, I’m sure that you either want it to be the grandest of all houses or, at the very least, sturdy enough to house all the things and people you care about.

Just like the house you dream of having, it needs to be built first and to be the good “house builder” that you aspire to be, you have to focus first on the foundation. Once you have the foundation set up then you can finally work on designing the house you see yourself having

Not only will it enable you to start building other parts of your “dream house” but it will also determine the range of your choices. Having a wide foundation opens up opportunities for the design of your house. Owning a hefty savings account opens up opportunities for the design of your life.


Accumulating savings has a lot to do with goal-setting.

You may have perfected the art of saving money and being thrifty, but not knowing where to put or where to use your wealth can also be disastrous. Why?

There are factors in the economy that affect the value of money. Money is only a representation of value and this value is directly affected by the country that “owns” it.

If you look at Forex or foreign exchange trading, some currencies are worth more than others and this is because a country’s economy directly affects the value of its currency.

Aside from currency performance, it is also important to note inflation. Inflation is generally the rise and decline of prices in the market.

Why is this important?

If your favorite notebook costs PHP 100 today, it may cost you PHP 125 to purchase the same notebook next year. This is because prices generally rise due to a wide range of unseen factors.

Say, you place all of your savings in a bank account that claims to have 3% interest and the rate of inflation at the end of 2019 is at 5% – how much is your money’s worth? Less than what you’d expect!

The key takeaway here is that just saving will not guarantee your “house” in the long run.

You have to ensure that your “house” will be able to withstand the unpredictable weather.

So what do I do?

There is no need to worry – saving might just be the healthiest financial habit there is! If you’ve heard about the financial industry, then it may be time to look into it.

Financial planners, consultants, and experts don’t just calculate for a living – they actually make money work for them. How?

There is a wide range of financial services out in the market that are designed to make your money work for you and beat the current inflation rate (among other relevant factors).

These products are free for you to use but it is important that you have goals set up and that you properly understand how these financial products work and how you will benefit from them.

Financial products are like vehicles for your money that are racing with other demeaning financial vehicles such as inflation and other economic factors.

If you were able to put your money in a good vehicle then it should outrun these demeaning vehicles without a problem!

When will you build?

Building your dream house is not a race. There is no need to have one right away and it does not matter if your friends have their houses built already.

What matters is how you feel about getting there and how important this “house” of yours is.

This measure of importance you feel about your savings is what the finance world calls risk profile.

Before shopping at the hardware store for building materials or visiting the race track for potential drivers – you should assess your risk profile by answering the question; how important is the “foundation” for me? Do I need/want my house built right away or am I willing to invest the time to make sure that I get the house of my dreams one day?

The answers to these questions will determine your so-called risk profile and from there, you should use these answers as direction on how you’re going to make your money work for you.

We’re happy to know that you’re approaching your finances in a rational manner and you’re taking the time to actually research about the topic. For more relevant content on finance, studying abroad, career and student life, visit edukasyon.ph!