FINALS

Lesson 6:

GROWING WEALTH THROUGH

FINANCIAL INVESMENTS – I

Attention: GROUP 6, you are our next reporters

 Why do
You Need
to Invest?
 Two (2) Main Reasons Why
You Need To INVEST
1. To outpace inflation.
2. To reach your financial goals more
effectively.
As of August 2018:

Deposit Interest Rate < 1% per annum (top commercial banks)

Inflation > 6%
 MONTHLY INVESTMENT
What’s Your Top Priority? WHEN? MONEY YOU
What’s most important to you? Deadline NEED 12% 4%

1. Retirement Fund 15 Years 5M 10,000 20,000

2. Your Long-Term Healthcare 15 Years 1M 2,000 4,000

3. Education:
Child 1: Age: 8 10 Years 1M 4,000 7,000
Child 2: Age: 3 15 Years 1M 2,000 4,000

Child 3: Age: ____

4.RetireWife/Husband ??? ??? ??? ???

5.Parent’s Retirement &Healthcare ??? ??? ??? ???

6.House, Car,Travels,Condo, etc. ??? ??? ??? ???

7. End Poverty, Charity, etc. ??? ??? ??? ???

The Essential 1st Step:
INCREASE CASH FLOW

Relate to your OBE / OBT

MONTHLY INCOME P50,000
MONTHLY EXPENSES P55,000
CASHFLOW -P 5,000

You can Start Investing only if

You have a Positive CashFlow.
HOW TO INCREASE CASH FLOW

.
 SAVE To INVEST. Don’t Save to Spend.
SAVER MONTHLY SAVINGS TOTAL AFTER 15 TOTAL AFTER 35
YEARS @ 12% YEARS @ 12%

WATER P20 x 30 = P600 +P300K +P3.5M

P0

3-in-1 COFFEE P130 x 20 = P2,600 +P1.3M +P15.1M

P10/cup

DINE HOME P800 x 4 = P3,200 +P1.6M +P18.6M

P200

PACKED LUNCH P100 x 20 = 2,000 +P1.1M +P11.6M

P50

NO BRAND SHIRT P3,200 x 1 = 3,200

+P1.6M +P18.6M
P300
+P5.9M +P67.4M
This is for illustrative purposes only and not indicative of any investment. Past performance is no guarantee of future results.
SIMPLY SAVING IS NOT ENOUGH.
SAVE & INVEST.
Investment – something
that has potential to make
money for you.
Types of Investments (based on Asset Classes)
1. Cash
2. Real Estate
3. Business
KNOW HOW MONEY WORKS

The RULE of 72

72 ÷ Interest Rate
= Number of
Years for your
Money to
Double
 KNOW HOW MONEY WORKS

You open a Your money

savings account doubles after
in the bank 288 years
0.25% P20,000
P10,000 Per Annum

72 ÷ 0.25 = 288 years

 KNOW HOW MONEY WORKS

GOVERNMENT SECURITIES
COMMERCIAL PAPERS
12% STOCKS AND EQUITIES 12%
RETAIL LOANS
REAL ESTATE

Depositor Shareholder

0.25% 12%
Savings Account Investment
The Philippine Stock Market
 Group Exercise

Time: 20-30 mins.

Temporary File
The Philippine Stock Market

GROUP EXERCISE │LS03

 The Philippine Stock Market
Given that You consistently invest P100 per month, for six (6) months,
determine or compute the following for each of the 3 scenarios:

1. Total amount of money you invested (Total Investment, in Pesos)

2. Total Number of Shares you were able to buy

3. Current Value of your total shares (Peso Value by Month 6)

Current Value = Total Number of Shares x Current Price per Share

4. Rate of Return (%)

% RoR = Current Value – Total Investment x 100
Total Investment

***Note: For Scenario 3, Price per Share at Month 6 is P4.50