What is Your Financial Goal For This Year, 2013?
The previous year has proven to be wonderful for the Philippine economy. The GDP growth figures beat expectations and is estimated to be around 6.5% for the entire 2012. That figure is especially amazing considering the fact the previous year witnessed one of the worst economic crisis in Europe and overall global economic downturn. Yet, the Philippine economy has proven resilient despite the bad economic environment.
PSE Index Breaks Boundaries
The Philippine Stock Exchange (PSE) is another good story which truly demonstrate how the world views the huge potential of the country. The PSE Composite Index (PSEi), represented by 30 blue-chip companies breached the 5000-point level in mid lad year and as early as January 7 this year, PSEi has already broken the 6000-point mark. Foreign funds keeps the index afloat.
How can these developments affect you personally, you may ask? Well, an increased investor confidence will boost Philippine economy by virtue of inward flow of funds. These funds, in turn helps the local companies expand their businesses, creating more jobs to Filipinos and eventually uplift their quality of life. More investors mean more businesses and more competition leading to better products and services. Of course, the actual process takes more than that, and the Philippine government plays a vital role in managing these developments. But the positive sentiment is such a huge factor already to make the Philippines rise up economically.
Benefit Personally By Setting and Achieving Financial Goals
To take full advantage of these positive developments, you have to move. First, set your financial goals. By writing them down and being specific on what, when, and how to achieve them, you are setting yourself up to a good start. Of course, keeping yourself motivated to reach them is another thing that needs to be worked out so it is important that the goals that your are setting are realistic based on your true capabilities.
What are some financial goals that you can set up for 2013? One good example is saving a certain amount. Data shows that among the South East Asian countries, the Philippines is one of those lagging in terms of savings. They say, and I quite agree, that Filipinos don't have the culture of savings. Most of us are just living our lives for a day. The saying "bahala na" is the typical mindset among us. When we have money, we spend it right away as if we are only living for today, so when time comes that we need it, we resort to loans which makes the situation worse.
Another financial goal that you can set for this year is becoming free from debt. It's okay to have debt from time to time. If used properly, it can even be a useful leverage that will help you financially. But there are debt that are bad like credit card debt. Many have fallen trap to this ending up overwhelmed by interest rates and other charges.
Lastly, you can make it a goal to invest. Money stored in bank is not earning money, and it even loses its value due to inflation. If invested properly, money can grow its value. Some forms of investment are real estate, setting up a business, buying stocks from publicly traded companies, mutual funds, UITFs, and bonds.
The next series of articles will discuss some of these goals and how can you help yourself achieve them. The Philippines is off to a good start this year. Do not be left behind, set a financial goal and work out to achieve them.
|English: Makati City: Philippines' New York (Photo credit: Wikipedia)|