THE GREATEST FINANCIAL FORMULA.
Many of us already know the financial formula that can make us financially free and that is:
Income – SAVINGS – Emergency Fund = EXPENSES
However, many of us also do not know which investment vehicle will we put the SAVINGS that can give us the MAXIMUM RETURN.
THE GREATEST FINANCIAL FORMULA
We have 4 OPTIONS:
OPTION #1: (2M Savings)
Put in a piggy bank
After 5 Years the value is still 2M
OPTION #2 (2M Savings)
Put in a Time Deposit @ 1.5% interest rate.
After 5 years the value of your 2M savings is Php 2,150,00.00 including interest.
OPTION #3 (2M Savings)
Put in Mutual Funds/VUL/Stocks/Bonds/Equities @ 27.5% interest rate of return on investment in the past 5 years.
After 5 years the value of your 2M will be Php 2,550,000.00 including ROI.
OPTION #4 (11k installment of 2M worth of property for 30 years)
Potential Return on Investment.
- Appreciation of Property Value @ 20% per year your 2M worth of property will become Php 4,000,000.00 after 5 years.
- Total Rental Income for 5 years at 18,000/month is Php 1,080,00.00
Value Appreciation + Rental Income =Php 5,080,000.00 (after 5 Years)
Option #4 shows that you don’t need 2 million to earn 5M in 5 years. You just need 11k savings for the monthly amortization of your 2M property and have it rented.
Be wise, choose the investment vehicle that will make your savings GROW FASTER.