uploader74
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Investing in Stock Market vs Saving Money in a Bank
investing gives your money the potential to grow faster than it could, compared to Bank savings. If you have a long time until you need to meet your goal, your returns will compound. Basically, this means in addition to a higher rate of return on investments, your investment earnings will also earn money over time, faster than your money in a Bank.
Example 1: BANKING
(With Maintaining balance, Hidden charges, Annual charges, and other fees or penalties.)
You have P5000 as regular savings in BPI (Bank of the Philippines) for a year.
The annual interest as of December, 2021 is only 0.0625%.
That is P3.12 in a year. Are you happy with this P3.12 earning for a year?
So if P3.12 x 5 years = P15.6. Are you happy with this amount in 5 years?
This is NOT a good use for your money in a bank, specially if you have 2 children going to College.
Example 2: INVESTING (USA stocks)
If you invest your P5000 in a stable Stock Market.
If annual gain is 57.02%. That is P2851.00 in a year.
So if P2851.00 x 5 years = P14,255.
The best deal here is, a stable stock market gains more than 57.02% per year.
Example 3: IDEAL INVESTING for stable Stock Market
If you invest your P20,000. (or $400)
If Annual gain is 57.02%. That is P11,404 in a year.
P11,404 x 5 years = P57,020 (or $1142)
[this is just an example, the gain in 5 years is much bigger than you expect within a Stable Good Company]
investing gives your money the potential to grow faster than it could, compared to Bank savings. If you have a long time until you need to meet your goal, your returns will compound. Basically, this means in addition to a higher rate of return on investments, your investment earnings will also earn money over time, faster than your money in a Bank.
Example 1: BANKING
(With Maintaining balance, Hidden charges, Annual charges, and other fees or penalties.)
You have P5000 as regular savings in BPI (Bank of the Philippines) for a year.
The annual interest as of December, 2021 is only 0.0625%.
That is P3.12 in a year. Are you happy with this P3.12 earning for a year?
So if P3.12 x 5 years = P15.6. Are you happy with this amount in 5 years?
This is NOT a good use for your money in a bank, specially if you have 2 children going to College.
Example 2: INVESTING (USA stocks)
If you invest your P5000 in a stable Stock Market.
If annual gain is 57.02%. That is P2851.00 in a year.
So if P2851.00 x 5 years = P14,255.
The best deal here is, a stable stock market gains more than 57.02% per year.
Example 3: IDEAL INVESTING for stable Stock Market
If you invest your P20,000. (or $400)
If Annual gain is 57.02%. That is P11,404 in a year.
P11,404 x 5 years = P57,020 (or $1142)
[this is just an example, the gain in 5 years is much bigger than you expect within a Stable Good Company]
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