Saving and investing – they’re two finance-related terms that some people use interchangeably. Don’t make the same mistake though as they don’t mean the same thing. They are, however, equally important in helping you manage your finances to reach your short-term, mid-term, and long-term goals.
For you to understand this, it’s best to first define the two terms briefly. Saving is setting your money aside – perhaps in a bank account – for you to access later on. Investing, on the other hand, is putting your money in a place where it can grow over time. While your money can compound in a savings account, the only way you’ll get significant returns is through investing. The key difference between the two is whether you expect your wealth to expand or not.
As previously mentioned, to reach your financial goals, you have to learn how to both save and invest. If you only save and don’t invest, you won’t make any progress towards your goals, with your savings being devalued each year as inflation makes goods and services more expensive. At the same time, if you only want to invest but don’t have the discipline to save, you won’t ever have money to put down for your investments.
Saving should always come before investing. Before that though, you first have to get to know yourself, finding out what it is you want in your future and when. Do you, for instance, want to start a family soon? Do you want to retire within the next five years? These are just a couple of sample questions that you should be asking yourself to set your future goals. They’re very important because they’ll serve as your guide on how you should be managing your finances moving forward.
Once you’ve set your goals and have some money saved, you can start investing. The question is, where do you start? There are countless investment options out there, from trading in the stock market to opening a business to buying hard assets like land or art. To find out what type of investment might work best for you, you have to take a closer look at their features.
One of the best ways to build your portfolio is to start with a small investment, and Sun Life Asset Management’s mutual funds product lets you do just that. For as low as P1,000, you can already get started with an account and become an investor. But perhaps the best part about this product are its features:
- Liquidity – You can easily liquidate your shares and access the amount your account has accumulated in the event that you need it for something else. Not all investments give you this option, and if they do, it could take time to cash out.
- Flexibility – You have the freedom to make your investment work for your own needs, including the amount you put in each month. Sun Life also lets you open multiple accounts under the same name in case you want to have different accounts for each of your goals.
- Diversification – You can enjoy a mixed portfolio, with a range of prosperity funds available.
Sun Life’s mutual funds product comes in individual, joint and corporate accounts, not to mention the SunRISE Program, which gives organizations the chance to help their staff become investors through salary deduction.
Any start-up investor would probably concede that no matter how the information is broken down, investing can still seem overwhelming. If you feel the same way, that’s fine. You can always consult with a financial advisor to get a reliable opinion on how you should go about reaching your financial goals. Because unless you are well-versed in finance or have the training to design your portfolio, you would be in safer hands with a professional.
You just have to make sure the person you choose to work with is a licensed and certified investment solicitor.
Also, you have to remember that while the market can swing – as it always does – you can rest assured that your hard-earned money is secure in Sun Life Asset Management’s hands. The financial services giant has been helping clients in the Philippines grow and protect their wealth for more than a century now. Plus, you’ll get personalized care from your agent, who’ll walk you through everything you need to know before you commit.
Ready to take the next step? Visit https://www.bridges-ph.com/janetnng/ to book your free, no-commitment appointment today.
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