I was told that the usual decision time for gadgets is around 10 weeks. This means it takes an average Filipino more than two months to decide which new smartphone or tablet he or she will purchase with his hard earned cash. That’s perfectly understandable since you have to weigh a lot of factors like the specs, features, and lifespan of the product you’re buying. What’s interesting though is that a lot of us spend hours researching on expensive gadgets that we will buy but rarely do people spend the same amount of time and effort in planning out how they will grow their money. Maybe it’s a lack of finance education in the country but fortunately there are now services that don’t need much finance acumen but it can potentially yield significant returns over time. My wife and I both subscribe to the BDO Easy Investment Plan (EIP).
What’s the BDO EIP?
It’s “forced” investments. When you sign-up for the program you tell BDO how much they will set aside monthly from your account and from what pool of funds you want to invest it in. You can either invest it in Bond (Low Risk), Balanced (Medium Risk), or Equities (High Risk). They beauty about this program is that for just Php1,000 you can already invest and you don’t have to go through all the usual paperwork to get started.
As a general guide if you want to play it safe you might want to put your money in Bonds or Balanced Funds. If you’re still young and you can afford it you might want to try out Equities because they potentially have higher returns especially over time.
My wife and I plan to just have this program take out the cash automatically for the next 10 years and we’ll let BDO do the work. Of course this is just one of the investment instruments available and we will definitely explore other options to compliment this in the future.
If you want to read more about this program check out this blog post of Personal Finance Coach Randell Tiongson. He wrote about the product in detail. You can also visit the official EIP page on the BDO website (click here).