I feel that I took one step towards my goal of financial security by starting my first savings account! It's all part of my plan to take control of my finances. And now I am employing all the tools i need to set myself on the way to financial security!
Why I opened a savings account vs Investing the money in mutual funds, bonds and/or stocks?
I opened a saving account mainly because of the liquidity I will get by putting my money in such an account. The main objective for this account is to become the account where I will build my emergency fund. Placing money against mutual funds, bonds and/or stocks doesn't really give one the liquidity you need when something unexpected happens.
Sure, it can be argued that you can still withdraw from these investments, but at what cost? Withdrawing from these investments before maturity will bring upon your potential earning a tax cut on top of the 20% withholding tax! Ouch!
But I will never be satisfied in keeping all my money in savings accounts. I plan to place my money in investments as soon as I am able to build my emergency fund :)
Why Manila Bank?
Well I guess I chose to open my savings account in Manila Bank for the following reasons:
- Comparatively high interest earned per annum - it will earn around 1.5%pa vs the current prevailing rate of 0.5% to 0.875%pa
- Accessibility - a branch of the bank is located in the building beside my office!
What's up next?
Well I'm still searching for a checking account and i have encountered some barriers to hinder me from signing up. (for another post)
Hopefully by the middle of this year I'll be managing my savings account and my checking account.
And another hopefully, I will be debt free by the middle of this year!! and that will mean one less financial goal for me to achieve by the end of year
Any new steps you took to get a hold of your finances? Or any new developments in your financial plan? Please share it in the comments!
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