13/12/2022
Why investing your money is better than saving it this 2022
In recent years, more and more people have taken an interest in saving and investing to further their wealth and prepare for the volatile state of the economy. Filipinos have become crafty and innovative regarding their finances and assets, dwelling on digital banks and investment options.
With all these options this 2022, what is better - saving or investing?
For many people, the question of whether to save or invest is daunting. There are different savings options and investment opportunities available, and each has its benefits and drawbacks. You may have heard that investing can be a great way to grow your money, while savings accounts offer a safe place to keep your cash.
But what are the differences between them? Are they both right for you?
Saving and investing are two different ways of managing your money.
We're familiar with the saying 'save for a rainy day.' While it's a good practice for those just starting to grow their wealth, tenured investors and other affluent few beg to differ. Savings accounts are safe and convenient, but they don't provide many growth opportunities. Savings are best for short-term needs, like emergencies.
The main reason: Inflation.
Over time, inflation can eat away at your savings and reduce your purchasing power.
When you save, your money usually stays in cash accounts like savings or certificates of deposit (CDs), which earn very little interest. The last recorded interest in Philippine banks ranges from 0.25 to 2%. With inflation raising a little over the interest rate, it will get harder to grow your money in these banks.
Despite the setback, saving is still a smart financial move that can help you put money away for the long term. However, investing is generally the better option if you're looking to grow your wealth.
Investing allows your money to grow faster by putting it into assets with higher returns, like stocks, bonds, mutual funds, and exchange-traded funds (ETFs).
Investing is more financially beneficial than saving when you invest for the long term. It can help you build an emergency fund, save for college or retirement, or even start a business. This goes beyond saving their money in traditional banks.
An investment option that can help you build up your wealth steadily is real estate. Real estate property values, particularly condominium units in high-tower constructions in key urban regions, tend to rise over time, making it a strong hedge against inflation.
Buying a home now will undoubtedly be a wise investment option, especially if you purchase during the pre-selling period. This is because its market worth will rise in the future, outpacing inflation's impact.
The solution to beating inflation.
Pre-selling units are 30 to 50% cheaper than condos that are ready for occupancy. Furthermore, for pre-selling units, developers frequently offer additional discounts of 5 to 10% or more flexible payment options. In addition to bank loans, developers offer in-house finance.
An example of a pre-selling development is Empire East's largest project to date. It is a 22-hectare elevated city in Pasig-Cainta called Empire East Highland City. This luxurious uphill community is spacious enough to accommodate you and your family's wants and needs.
There will be various types of condominium units, from studio units for yuppies who seek an independent lifestyle to 2-bedroom units for families who prefer the lifestyle of the East. Interested homeowners have the option of paying less per month through the help of flexible payment options and discounted fees.
If you want to see more of Empire East Highland City, the first elevated city in the Philippines, you can check out its website, Facebook, and Instagram pages.
Saving or Investing?
In conclusion, saving money is essential, and a great way to keep your money safe and sound—investing can help your money grow much faster in the long run. Investing is a better way to save money because it gives you access to growth opportunities.
To learn more about real estate investing and intelligent ways to grow your wealth, you can read more about it on our Empire East website.
