How to Be a Millionaire in 5 Years in the Philippines – Just only 5 years Take a look at how to be a millionaire in 5 years or less. If you want to be a millionaire in the next 5 years read this very carefully and pay close attention to the tips and tricks. It is not impossible for anyone to become a millionaire if he can follow the steps and advices set out in this article. This is very important if you want to change your financial status and make sure that you can remain financially stable.
How to be a millionaire in the Philippines is quite easy with these proven methods. There are many ways to become a millionaire in the Philippines in 5 years. The techniques I have used are all legal and ethical methods for Filipinos to create wealth.”
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Time is Money
To understand it better, imagine you have an apple seed and you will plant it now. After many years, the seed will become a tree and will bear fruits. It will extend more branches and bear more fruits year by year. Soon you can have thousand of apple trees. Imagine the profit you have earned after few years. Time is money.
To understand it more, speaking of Apple, do you know the traded stock price per share of Apple before iphone came along on June 2007? It was trading around $200. In March 2013 it was trading around $444 and it was even trading around $700 at some point in September 2012. If you had hundreds of share and you do the math, you gained so much.
To get it even better, for example you became one of the major stockholders of Jollibee and owns now 10% of capital and Jollibee was worth 2 billion that time. After 10 years, it expanded globally and now worth 20 billion. Hey, remember you own 10%? That’s 2 billion now. That’s just an example. See the stock chart of JFC (Jollibee Foods Corporation) below
JFC Stock Chart (5 Years) taken from Bloomberg
Ok, I’m just trying to make a point there. Time is the most precious asset and choosing the right company to invest with is so important to earn profit in the future. Don’t just invest, be part of a huge company which will obviously be here after 10 years or more.
Another example why time is money:
Why do we contribute to the SSS or GSIS every month? Simply because to have a generous retirement fund in the future. The more years of contributions, the more our pension would accumulate. It’s kinda same thing with investment earnings through compound interest. As Einstein said,
Compound interest is the greatest mathematical discovery of all time.”
In pension, age is a big factor because your pension will be computed based on your CYS (creditable year of service) and some other factors like monthly salary or contributions.
So time value of money makes sense there right? The earlier you started investing, the more you will receive in the future. If you still can’t understand it, I suggest have a short break and indulge with Jollibee hot-fudge sundae. It makes my brain work well…perhaps it could do the same somehow. Besides, I have stocks at Jollibee (smiles).
Why Peso-Cost-Averaging?
- Because you don’t have to monitor the market constantly and you’re not an expert
- Because it’s not too risky
- Because reality is – trading in the stock market is dangerous. One day, economic growth could be amazing; the other day there could be crisis. In order to avoid losing your money and risking it, choose investing in stocks by using the Money-Cost-Averaging method. We call it peso-cost-averaging here since peso is our currency.
Peso-Cost-Averaging method involves investing a fixed amount of money at regular intervals over a long period of time. Example, you set aside a portion of your income, let’s say P5000 every month in a period of 10 years. You use that P5000 to buy stocks from a certain company that you believe will still be performing well after so many years. Companies like:
- Ayala Land, Inc.
- SM Prime Holdings, Inc.
- Jollibee
- PLDT (TEL)
- BDO
and many more. Choosing the right company is so important. Make sure you practice buying your stocks regularly from the chosen company regardless of the stock price. Choosing the right company will give you high returns in the future.
When Look At How To Become Rich In The Philippines Start To Increase Your Income & Decrease Expenses
The first step on how to become rich Philippines can be completed in 15 minutes. All this takes is a few simple things, either a pen, paper, or a computer. If you haven’t done this already, the first thing to do is to list your incoming and outgoing expenses.
There may be things you do not include in our weekly or monthly plan; however, these also need to be added. Here are some examples.
• Smoking
• Nights out
• Family Or Friend birthday gift
• Clothes
• Dental, Eye, Hospital check-ups
• Water
When you write your list, try to write down everything that comes out of your bank, even if it’s only 1% of your expenses, because if you have a few different items which seem to be the low value, they can soon add up and your incoming/outgoing won’t match.
The next step on how to become rich in the Philippines is to try to increase income. There are a few ways to do this that we will investigate later, but we will look at your salary for now. Do you get paid commission or hourly? Could you do overtime? Could you work in a different way which would increase revenue? At this stage, we are only focused on building wealth in your current situation.
Essential: These are 100% needed to survive and live. These include your rent, food, and medical expenses. In other words, if an emergency happened and you had very little money, what areas of your life are essential for you to carry on surviving.
Not essential but necessary: These are not essential but needed for your everyday life. A few examples are car fuel, Clothing, Educational costs, etc. If your job required you to have a reliable internet connection and a laptop, this would also be in this category as this is needed for your daily life.
Unnecessary: These are products or services you don’t need and often kill your available monthly funds. These include beer, expensive shoes, Netflix, and other luxuries.
It’s time to cut through unnecessary expenses (and even the not essential but necessary expenses, too, if possible.) We are doing this to our budget because we need to increase the line between income and outgoings. Sadly far too many people live from paycheck to paycheck and never earn some serious wealth.
Many financial experts agree that expensive luxury items are unacceptable, and I second that motion. However, life is for living, and we are not suggesting cutting out everything if that means you won’t have a joyful life because living is more important than money. Instead, we suggest that you cut out the items you do not need or items that are a higher percentage of your expenses each month.
Can a regular employee who earns 10,000 to 15,000 a month become a millionaire in 10 years?
Let’s say your salary ranges from 10,000 to 15,000 a month. You less your expenses, maybe 5,000 will remain. If you are a shopaholic, please stop reading this. If you love buying the latest gadgets and just earn this salary range, please forget about this. If you are not really serious in saving money and are not disciplined enough, just try something else.
Literally, 5,000 a month for 10 years would give you 600,000 if you save them on hand. If you save them in a bank, they would earn interest but that is not much. If you want to earn millions out of it, invest your 5000 a month in the stock market. If the Taho vendor earned less than 5 million from his investment, what more you? So the answer is YES. Take note, time is money. If you want to earn more millions, extend your target period from 10 years to 15 years or more. How to become a millionaire starts with your mindset.
Clear (Bad) Debt If Your Looking To Become A Millionaire In The Philippines
With financial step one being completed, we now have a more significant difference between our salary and expenses. This will lead us to our second stage, and that is Debt. Do you have any debt? If so, I felt your pain once when I was very young and foolish. I managed to get myself in a lot of Debt (around half a million pesos!) So, I know how tough and crushing it can be.
If you have several debts, the trick is to pay off the highest interest first. Start by working out how long it will take you to pay off each Debt, let’s say nine months. Then work out the total interest you will pay. After doing this, you can see what carries the highest interest and start to destroy this Debt, then move on the next and the next until you are debt-free.
Conclusion:
Many of us want to be millionaires someday. Heck! There are millions of us who want to be millionaire in 5 years or less. Some of us plan on working hard for it, while others think it could happen if they win the lottery. But these days, people would rather just take the shortcut way out.