[B-SIDE Podcast] Money Talks: moving from savings to investing

0


Follow us on Spotify Face B BusinessWorld

Money Talks is a personal finance series sponsored by Metropolitan Bank & Trust Co. (Metrobank).

Money is on the minds of many people, especially in the midst of the COVID-19 pandemic. A recent study called ‘State of Banking and Financial Wellness’ by US research firm Forrester, commissioned by financial technology firm Backbase, found that more than half (58%) of Filipinos identified building up savings ( 58%) and planning for retirement (52%) among their personal finance concerns. Debt is a major concern, with 70% of Filipinos citing it as a challenge in financial management.

In this B-Side episode, Chorie Chan, Senior Vice President and Head of Financial Markets – Investment Distribution for Countryside at Metrobank, talks about money with Business world, and how the pandemic has changed the way we see and think about it.

TO TAKE AWAY

What has changed and what has not changed

“I have been in the banking industry for over 27 years now and what the pandemic has taught me is this: The basics of saving, budgeting and investing are still there. Am I saving enough? Am I spending too much? How should I budget my finances? Ms. Chan said.

“It doesn’t matter what you think, it doesn’t matter if you calculate unforeseen expenses, if you still have an extra amount that you might not need, then we are talking about investing. It is still a universal truth that has not changed over the years, pandemic or not. A universal truth that has likely evolved over the years, and more so during the pandemic, would be the need for better returns and the need for diversity in what you can possibly invest in. ”

We need to be able to assess our own financial well-being

People need to re-evaluate their perception of money in an environment of uncertainty.

“Before, we seemed to have this confidence in stability. Stability of where we are if we have businesses, if we are employees. We kind of got to project that “I’m still going to have this stream of income over the next couple of years.” But there you have it, the pandemic has happened, and none of us are as certain as before that it could persist for years or months to come, ”Chan said.

“It has become too urgent for all of us that we could consider expanding or deepening the amount of savings we may need anytime soon beyond the six month requirement for spending. “

Saving is not investing

“I don’t equate saving with investing. A lot of us are confused that when we have a surplus of our inflows minus the outflows, we automatically consider that as an investment fund, ”Chan said.

“Liquidity. The ability for anyone to convert their savings into cash. Liquidity means that you can access your money in any form and be able to use it for an unforeseen expense. So if there is any doubt in your mind that if, say, a family member needs help or your car needs maintenance in a few months, then there is an amount that you should always keep cash, so you can spend for this unforeseen need. “

Discover different ways to manage your portfolio

Ultimately, what you need to do to save and invest will depend on your needs and what you hope to accomplish. “There is a whole world of ways… to discuss how, why and in what ways you can build your portfolio. Ultimately, it will all depend on your investment objectives, your risk tolerance and your need for liquidity, ”Chan said.

“The critical point that an investor should be mindful of is that access to these financial investments, securities or assets is so free that you can actually contact any financial institution that you are comfortable dealing with and being taken to. to speak to specialists within this institution. Ask them, feel free to explore, talk to people in touch with the financial markets so they can sit down with you. The advice is free, I’m sure. And they can profile your suitability and preferences and match them to your needs and goals.

Recorded remotely on November 4. Interview with Santiago J. Arnaiz, Business world contributor and CEO of the health startup Day3 Innovations. Researched by Bjorn Biel “JB” M. Beltran. Produced by Paolo L. Lopez and Sam L. Marcelo.

Follow us on Spotify Face B BusinessWorld


Share.

Comments are closed.