Hello guys, just wanted to share something I learned when I was being recruited by a brokerage company, it's about interest rates...
... kasi daw most people don't really see the difference between interest rates... it's like earning 4% is simply earning 4times as much as 1%... actually, it's much more, specially with the time element.
Here are some figures if someone, for example, saves his P100,000...
at 1% (interest in savings bank)
It will take 70 years before his money doubles (P200,676.34) For us, we'd be over 100 years old by that time. At 10 yrs, his money would have grown to P110,462.21.
At 20 yrs, P122,019.00.
At 30 yrs, P134,784.79
At 4%
It will take only 18 years for his money to double to P202,581.65.
At 10 yrs, his money would have grown to P148,024.43.
At 20 yrs, 219,112.31.
At 30 yrs, 324,339.75
At 12% (Some housing loans)
It will only take 8 years for the money to double to P197,382.27.
At 10 yrs, it's already P247,596.32.
At 20 yrs, it's already P768,996.58.
At 30 yrs, it'a already P2,388,386.65
At 16% (Other housing loans)
It will take only 7 years for it tp double to P210,034.17
At 10 yrs, it's already P327,841.19
At 20 yrs, it's alrdy P1,446,251.45
At 30 yrs, it's alrdy P6,380,044.36
At 39% (Credit Card rate of 3.25% per month)
The money would have double to P193,210 on the second year.
At 10 years, it's already P2,692,452.20.
At 20 years, it's already P72,492,988.72
At 30 years, it's already P1,951,839,072.65
Assuming credit card loans are left untouched - no payments and no additional loans were made, they will easily balloon to amounts almost not imaginable.
Anyway, the message is let's avoid loans as much as possible. Pay credit card bills before they earn iterests (just enjoy the convenience and freebies! - but be strong enough to resist temptation; otherwise, get rid of it). Let's also invest in wise investments... save less in banks (just have enough for emegency because big savings in banks are usually withdrwan, too, and spent on things that don't last). Let's exert effort to save and invest, and spend less on things that don't really last. Other investments could be jewelries or real estate. For smaller amounts, it would be wise to invest in trust or mutual funds, stocks or (if you still trust us) pension plans. :-)
Syempre, my pension plans quotation is coming up next... But really, it's good to think about investments and security too...! Good day!
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