Getting a Financial Mindset for 2022: Empowering Your Small Savings

Inflation rate is expected to hit 3.5 % in 2022, says UOB or United Oversees Bank, some 0.2 percent higher than what the Central Bank expected, according to The Business Times. Interest rates in the country, on the other hand, is seen to hit 2.5 % in 2022, according to Trading Economics.

Photo by Visual Stories || Micheile on Unsplash.

This means your money in the bank will gain 2.5 % interest but lose 3.5 % to inflation. You're left with -1 % profit (with emphasis on the negative sign). Your money's buying power declines. "Me utang ka pa!" That's what happens if you simply entrust your money to the banks. You lose a lot. That's not to mention some hidden charges.

So what my financial mentor (Mentor X 😄) tells me is to put my savings in a business (preferably online) or invest it. Trade it. One of my trading investments gives me 35 % VNT a month (VNT is a Filipino NF coin). That beats a 3.5 or 4 percent inflation so easily even if one VNT converts to just one peso. And this is true whether I trade for the long or short term. I keep small amounts of my money in banks only for short terms. 

Trading? Oh yeah! Even with my small savings, I can now trade in currencies. Thank GOD for this development. The middle class can now engage in trading, even the poor. But it's very risky, especially when I tend to be bullish sometimes, but I'm generally moderate. Sometimes conservative. Anyway, I trade using my extra cash, not my spending or budget money. It's cash I can afford to risk. But it's a calculated risk because I try to note market movements. 

Jesus shared a parable on investments where the king told his servants to "put your money to work." The idea is to make money work to gain profits. It wasn't about getting a job and earning salaries, or being employed to work for money. It was about investment where you make money do the work. The first servant got 100 percent increase in profits, having his 10 mina gain 10 more (a mina was about 3 months wages).

Losses are part of investments, but better if you avoid losses. That comes with skill after years of experience. For now, you should take losses in stride when they happen, not being emotional. Many people still do not understand this. Business is about taking risks--you win, you lose. And be ready and mature when you lose. Poor minds look for something or someone to blame. If you're like this and feel you cannot change, just keep your money in your bank and suffer inflation rates.

Learn to control your emotions. How? By learning how to develop a powerful personality. Click the image below for more!

Scams are a given. You try your best to educate yourself financially to avoid scams, but it's not a guarantee. I still fall to scams now and then, and it's okay. It's part of taking risks. The learning you get is invaluable. Getting smart with anything involves risks and mistakes big-time. Mistakes are still better than putting your money in the bank where you lose money without realizing it--and can't do anything about it.

So, are you ready to invest? Are you mature and daring enough to take risks and commit mistakes? And are you ready to wisen up and be smart with investments? Then start looking for good investments.