WATCH: Learn to save money the smart way with Bianca Gonzalez’s vlog

Image: Instagram/@iamsuperbianca

Bianca Gonzalez’s latest vlog is quite relevant to just about any Filipino, especially in this economy where inflation is at a five-year high.

The TV host’s latest “Paano ba ‘To” vlog answers the question, “How to Save Money for the Future?” with the help of Rose Fres Fausto, a former investment banker who is now a homemaker, writer and financial expert.

The financial advice is explained in terms easily understood even by those with no financial background. According to Fausto, a key to saving is putting a system in place so that one is forced to save.

She said the latest one should start saving is in their first job. It could even start earlier if parents open accounts for their children.

Fausto’s first piece of advice is probably the one most people have difficulty with: Pay yourself first.

Saving is associated with depriving ourselves, when actually it’s prioritizing your future self, she said, noting that the mindset on saving needs to change.

But with proper systems in place, half the battle is won. The first step is opening a bank account so one can maximize investments available in the bank.

She said those in their first job can begin with their payroll account. They can approach their bank to ask what they can do for short-term and long-term funds.

For short-term or emergency funds, one can inquire about time deposits so it can be withdrawn from only after a certain amount of time. Withdrawing at a sooner time will incur a pretermination penalty.

Fausto recommended equities or stocks for long-term funds because they gave the highest return versus savings accounts, current accounts and time deposits.

She acknowledged that the concept of stocks is intimidating to people because it is assumed that you have to trade within the market, which requires some expertise.

However, she noted that it simply means “partnering” with business tycoons by investing in their companies. Index funds are also available in banks, where one only needs to sign up once to avail of it. One can have the investment automatically deducted from their salary either once or twice a month.

Fausto explained that not considering long-term needs is why people fail in saving in saving. “Kinakalimutan natin ang (We forget) long-term [needs] just because it’s not urgent.”

“Nobody gets poor overnight, strictly speaking,” said Fausto. “If you keep on delaying your saving and investing, sasabihin mo, ‘may gastos pa ako (you’ll say, I have expenses).’”

“Tatanda ka lang (You’ll grow old). Before you know it, it’s just two years before retirement.”  /ra

RELATED STORIES:

6 must-do money tips to grow your savings

WATCH: Boy Abunda’s wise words to millennials doubting themselves

How Bianca Gonzalez is trying to raise her daughter in a gender-neutral way