Posts Tagged ‘saving


Saving in Pesos or US Dollars

Your decision on whether you should keep your savings in pesos or dollars depends on your financial status and goals. This becomes clearer when you make your Statement of Asset and Liabilities (SAL) and Personal Income-Expense Statement (PIES) and write your financial plan.

If your plan requires that you spend in pesos in the future, there seems to be no reason for you to keep dollars for your savings.  Aside from this, dollar placements have lower interest rates compared to the Philippine inflation rate.  You should always earn a higher rate than the inflation rate to make your money grow.  Otherwise, your savings will stay the same or even go down.

Because of this, you will only gain from investing in dollar placements if the Peso-Dollar rate continues to decline at a rate that will more than make up for the low dollar interest rates.

Foreign exchange is a tricky subject. As in any investment, spread your risk. You should not put all your savings in foreign exchange unless perhaps you plan to live abroad. You must be very clear on what you want to achieve every time you invest. Pay close attention to the amount you expect to earn and the period of time you expect to achieve this.


Pay Yourself First and Savings Tips – Part 2

I am quite happy that Ms. D.L. continued to communicate with us regarding her investments.  This time she was asking about her SSS benefit and how to invest it.  Again, I translated her email from Taglish to English for the benefit of the Cebu readers.

Dear FJC,

Sir, thank you again for your effort to save OFWs and the future generations.  You have opened our eyes to our mistake of our being “one day millionaires” when are earning a lot.

Anyway, what I’m going to ask you is about my SSS compensation.  Is it better to get it lump sum or monthly pension.  If I get this in lump sum, my plan is to put it in security bonds.

I have paid for 10 years and I am only 40 years old.  Should I wait when I reach 65 years old for my monthly pension?

Thank you Sir and also to Armand, Kuya Mike and Tita Kerry (my co-hosts in the Philippine Tonight Show).  More power to your program.

Yours truly,


Dear D.L.,

Please check if you have the option to get your SSS compensation after only 120 payments.  As I understand it, you can only get it when you have retired.

If you do have the option to get it now, perhaps you should get it, as long as you are able to invest it in investment instruments like T-bills and the right mutual funds and cooperatives like the Kalayaan sa Kakapusan Service and Multipurpose Cooperative.

Thank you again for listening to our program.  God bless!



Dear FJC,

Thanks for your advice. 

Kindly explain about equity funds, where can I buy it.  I didn’t hear the explanation.  Where can I get the application form?

Thanks again for replying even if I am “makulit”.

Yours truly,



Dear D.L.,

For investments, you have other choices like:

1)  Invest in a cooperative like the KSK SMP Cooperative.  To learn more about it, check out  If the website is still under modification, please give it some days and it will be available.

2)  Invest in mutual funds that are well managed that accept a minimum of Php5,000. Please tell them that Colayco Foundation referred you to them so they will better explain your options.

(I gave her some names and contact numbers.  If you want those names and numbers, please email me.)

When you invest in these alternatives, you must be ready to leave your money including the interest to compound. 

Please watch Channel 9 Money Talk every Saturday night at 11 p.m.  and listen to RMN 558 AM band every Saturday night at 9 p.m. if you want to hear more about my savings principles.

I hope I have been of help.  Feel free to email if you have any other question.


God bless!



In these email exchanges, you will notice that I only give those who ask me advice an idea of the investment vehicles that are available to them.  I have always said that every investment one makes must have very specific objectives.  These objectives are very personal to the investor.  So it would be quite difficult for me to specifically make recommendations unless I know the complete situation of the investor.  This is the reason why I focus on the instrument being inquired about.  I ask our readers and listeners therefore to contact certain institutions who make those investment vehicles available and who have the track record of capability.  I do not endorse any institution so that all of you can be completely independent and careful in your choice. 

These institutions can explain their own product/s and capability much better than I can.  Understand them well and if you still have any question that they cannot answer to your satisfaction, you can email me and I will try to answer. 

Next month, I will write about the nature of investments starting with mutual funds.

I hope you have read my book “Wealth Within Your Reach” available at all National Book stores and PowerBooks outlets.  In this book, you will learn more about how to start saving.