Inflation is an increase in prices of the goods and services in an economy, resulting in a decrease in purchasing power. It is measured by how fast the prices increase over a period of time. On the contrary, when prices drop, it is called deflation, which increases purchasing power.

Supply and demand for products and services greatly affect the prices and purchasing value of a country's cash. The increase in production costs, such as raw materials and employees’ salaries, even amid the same demand, can cause inflation due to the added costs passed onto the consumers. A surge in demand can also cause inflation, as consumers are willing to pay more for the product or the service.

## How Does Inflation Affect Our Lives?

Most people around the world, not just those living in the Philippines, feel the increase in the cost of living in their daily lives as a result of inflation. However, the increase in prices hits the middle-income class hard and the low-income class harder.

The higher cost of basic needs such as food, transportation, and utilities results in less savings and less extra money for discretionary spending, especially when your salary isn’t increasing at a rate similar to the inflation rate. With all the price hikes in both goods and services, it is important that you plan your finances to survive economic downturns.

## How To Save Money During Inflation?

Given that inflation is unavoidable, it is important that we find ways to mitigate the negative effects of the rising prices of goods and services. 

## Here are some tips you can consider:

**Shop Smart**

Shopping can be incredibly rewarding. However, in times of inflation, we need to learn how to spend our money wisely to reduce our everyday expenses. 

**Here are some tips to help you:**
- **Make a list**. Be sure to list down all that you need to buy, and stick to your plan. By having a list and sticking to it, you'll be less likely to make impulsive purchases.
- **Buy house brand products.** When shopping for groceries, look for house brands, they are usually cheaper compared to other brands.
- **Buy in bulk.** Non-perishables such as detergent, shampoo, soap, and diapers can be bought in bulk and you can avail of bigger discounts.
- **Shop near closing time.** Take advantage of the discounts some shops, such as bakeries and cafes, offer when it’s near closing time. 
- **Pay using your credit card.** Some credit cards give cash back rebates when used to pay when dining or shopping at participating restaurants or stores.
 
**Save Your Money in a Better Place**

While it is good to have emergency cash that you can easily withdraw, keeping the rest of your savings in your bank savings account will not safeguard your purchasing power. This is because inflation has a detrimental impact on your idle cash savings. The value of your savings today will be less in the next few years depending on how high the inflation rate is. That’s why it’s important to try to protect the value of our savings over time.

There are relatively safe ways of saving that offer higher interest rates than a regular savings account. One that you can consider is the Pag-ibig MP2 Savings Program. It’s a voluntary savings program for Pag-ibig members who wish to save more and earn higher dividends than what you can get under the regular Pag-IBIG Savings Program. 

**Pay Your Debts Soon**

Prioritize paying off your debt so that you can reduce the compounding interest rates on your loans, which will help you save in the long run. Clearing your debt will also give you a more accurate picture of your financial standing.

**Reduce Energy Bills**

Inflation typically hits basic and essential goods and services the most, causing the utility rates to increase. The two basic services that are usually affected are electricity and water. 
Take a closer look at your bills, and find ways to cut down what you don’t need or reduce your usage. For example, instead of using the shower when taking a bath, you can use a pail and dipper. 

**Consider Getting a Side Hustle**

Some of us may not be able to stop purchasing discretionary products or some things that aren’t really necessary. Alongside being cautious with your spending, another way to increase your earnings and budget for non-basic goods or services is to have a side hustle. 

Here are some ways you can make some extra cash on your own time:
- Tutoring
- Freelance writing
- Online reselling
- Baking and selling pastries

These can be great ways to generate more income and develop your skills, especially if your side hustle is aligned with your interests.

**Consider Investing**

If you haven’t done any investing before, now is the best time to start! Having a long-term investment plan is one way to combat inflation. 

Real estate is definitely an investment you may want to consider, as the value of properties usually increases over time. Investing in stocks is also a good idea and can help grow your money in the long run.  


**Bottom line**

With all the price hike and interest hike in time when inflation is high, budgeting, especially, household budgeting is a challenge that leaves some frustrated. Start with reviewing and analyzing your monthly expenses including both necessary expenses and discretionary spending, and listing down what to prioritize. This will help you determine your monthly needed budget, what you can cut down and what you can save or set aside for investment.


Inflation is an increase in prices of the goods and services, resulting to decrease in purchasing power. Learn how to save during this economic downturns.

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How To Save Money During Inflation | Plentina

How To Save Money During Inflation

Purchasing a home is a significant financial milestone for any Filipino. However, the process can be overwhelming, especially for first-time homebuyers. Without proper planning and awareness, it will be challenging to navigate the home buying process. A buyer without a plan will encounter difficulties or worse, even end up in financial trouble.

Here is a quick checklist for Filipinos who are considering buying a home:

### Define Your Home Buying Goals
Before embarking on the home buying process, it's essential to define your home buying goals. Consider your needs, preferences, and long-term financial goals. These include the size of your home, location, proximity to schools, hospitals, work, , and potential resale value. This will help you narrow down your search and focus on homes that meet your specific needs and goals.

### Check Your Finances
It's crucial to check your finances before making any home buying decision.. Determine how much home you can afford by reviewing your income, expenses, and any existing debt obligations. Make sure you have a sound credit history and a steady income source to ensure that you can qualify for a home loan.

### Secure Financing
If you require financing to purchase a home, be sure to secure it before making an offer. Research different lenders and loan products, compare interest rates and terms, and choose a loan product that aligns with your financial goals and capabilities. Understanding financing options can help you make informed decisions and avoid financial difficulties.

### Choose the Right Real Estate Agent
Choosing the right real estate agent can help you navigate the home buying process with ease. Look for an agent who is knowledgeable about the local real estate market, has a good reputation, and communicates well. They can help you find homes that meet your criteria, negotiate prices, and assist with the paperwork.

### Inspect the Property
Before making an offer on a home, it's essential to inspect the property thoroughly. Hire a licensed home inspector to examine the structure, plumbing, electrical, and other systems. This can help identify any issues with the home and avoid future repair expenses.

### Find the Right Homeowners Insurance
Homeowners insurance protects your home and personal property from damages or losses caused by accidents, natural disasters, or theft. It's crucial to find the right homeowners insurance that provides adequate coverage and fits your budget.

### Negotiate Accordingly
Negotiate prices, sale terms, and other contingencies in a home buying agreement. However, it's crucial to negotiate reasonably to avoid losing the property or paying too much for the home.

### Closing the Sale
Before closing the sale, ensure that all necessary documents are in order, and all contingencies have been met. Read all documents carefully, and don't hesitate to consult with an attorney if you're unsure about any terms. It's also essential to prepare for the closing costs, which typically include appraisal costs, inspection fees, and other expenses.

Buying a home is a significant financial commitment that requires proper planning, awareness, and discipline. By defining your home buying goals, checking your finances, securing financing, choosing the right real estate agent, inspecting the property, finding the right homeowners insurance, negotiating reasonably, and closing the sale, you can make informed decisions and achieve your dream of homeownership. It's essential to approach the home buying process with realistic expectations, careful planning, and discipline to avoid financial difficulties and secure a better future.

Buying a home is a significant financial commitment that requires proper planning, awareness, and discipline.

Buidling a home

Buying a Home Checklist for Every Filipino | Plentina

Buying a Home Checklist for Every Filipino

Many people are taking an interest in cryptocurrency these days. When considering investing in cryptocurrency, you may consider purchasing and holding one or more crypto coins. A lot has been associated with the term as it continues to grow massively, including pay-to-win games, trading, crypto assets such as artwork commonly referred to as NFTs (Non-Fungible Tokens), and so on. But what exactly are these, and why are so many people obsessed with cryptocurrency nowadays? Are you thinking about investing in cryptocurrency, digital coins, or tokens? Before diving in, it is critical to study and understand cryptocurrency more thoroughly.
 
## What is cryptocurrency?

Cryptocurrency. It's the hottest buzzword in the investing world right now, and it has only grown in popularity in the twenty-first century. But what exactly is cryptocurrency? Do you know what Bitcoin, Dogecoin, and Ethereum are? No, they aren't just toys with made-up names. They are types of cryptocurrencies or digital money. There are a lot of cryptocurrencies that have been developed in the past years, and they're everywhere these days.

Cryptocurrency, also known as crypto-currency or crypto, is any type of digital or virtual currency that uses cryptography to secure transactions. It got its name primarily because it employs encryption in all of its system's processes and transactions. 

Cryptocurrencies lack a central issuing or regulating authority and instead rely on a decentralized system to record transactions and issue new units

Cryptocurrency payments exist solely as digital entries in an online database describing specific transactions, rather than as physical money carried around and exchanged in the real world. It is a digital payment system that does not rely on banks for transaction verification. It's a peer-to-peer payment system that allows anyone, anywhere to send and receive money. Cryptocurrencies are kept in digital wallets, and transactions involving cryptocurrency funds are recorded on a public ledger.

Bitcoin was the first cryptocurrency, and it is still the most well-known today. Much of the interest in cryptocurrencies is speculative, with speculators occasionally driving prices skyward. As of 2022, there were over 9,000 other cryptocurrencies in the market, with over 70 of these having a market capitalization greater than $1 billion.

## How does cryptocurrency work?

Cryptocurrencies are based on blockchain, a distributed public ledger that keeps track of all transactions that are updated and held by currency holders. One common way to acquire a crypto coin/token is through crypto mining. Crypto mining is a process that uses computer power to solve complex mathematical problems that generate coins to create cryptocurrency units. Users can also purchase the currencies from brokers and use cryptographic wallets to store and spend them.

You don't own anything tangible if you own cryptocurrency. What you have is a key that allows you to transfer a record or a unit of measurement from one person to another without the assistance of a trusted third party.

Although Bitcoin has been around since 2009, cryptocurrencies and blockchain technology applications are still emerging in our economy, with more use cases expected in the future. The technology is seen as potentially something that could eventually be used to trade bonds, stocks, and other financial assets.

## What are the different ways to invest in cryptocurrency?

When considering investing in cryptocurrency, you may consider purchasing and holding one or more crypto coins. Buying cryptocurrency directly is probably the most common way to add crypto exposure to your portfolio, but there are a few different ways to invest in cryptocurrency:

Buy cryptocurrency directly: You have the option of directly purchasing and storing one or more cryptocurrencies. You may choose the more established digital currencies, such as Ethereum and Bitcoin, or you may go for virtually unknown coins that are currently growing and may offer upside potential but may also never take off.

Invest in cryptocurrency companies: You might also want to consider investing in crypto companies that will manage your assets for you. These companies are investing in cryptocurrency for a variety of reasons. Large corporations see the value of investing in cryptocurrency, and it’s one way for them to diversify their portfolios and keep a reserve in crypto assets. Companies are seeing an opportunity to cater to a larger customer base as more people invest in Bitcoin, Ethereum, and other popular crypto tokens.

Become a crypto miner or validator: Mining cryptocurrency or acting as a validator in a crypto network is perhaps the most direct way to invest in it. Cryptocurrency miners and validators earn cryptocurrency rewards, which they can either keep or exchange for another currency.

## How can you buy cryptocurrency from an exchange?

You can use a cryptocurrency exchange platform to invest in cryptocurrency directly. Here's how to purchase cryptocurrency via an exchange platform:

1. Decide which cryptocurrency exchange to use. A reputable, well-known exchange platform with a large selection of currencies is your best bet.

2. Open an account with a cryptocurrency exchange. To complete the registration process, you must provide personal information and verify your identity.

3. Deposit fiat money into your account. Before you can purchase any cryptocurrency, you must first fund your exchange account with another currency, such as US dollars.

4. Choose a cryptocurrency to purchase. You have the option of investing in one or more cryptocurrencies. Investigate your options so you can make an informed decision.

5. Place a buy order for the cryptocurrency of your choice. Follow the exchange's instructions to submit and complete a buy order for one or more cryptocurrencies.

6. Keep your cryptocurrency safe in a digital wallet. After you complete your purchase, the information you need to access your cryptocurrency is stored in a digital wallet. The cryptocurrency exchange or an independent wallet provider can host that crypto wallet.

## What are the pros and cons of investing in cryptocurrency?

The journey of investing can be seen as a double-edged sword–to get the highest reward means facing the highest risk. Hence, it is very important to also weigh the pros and cons when deciding whether or not to invest in crypto.

### Pros:

#### Security

Investing in cryptocurrencies comes with the assurance that assets are protected by a high security system. Other people cannot sign transactions or access your funds unless they have access to your crypto wallet's private key. However, if you lose your private key, you will be unable to recover your funds. Furthermore, the blockchain system's nature and the distributed network of computers verifying transactions adds more layers of security to transactions.

The network becomes more secure as computing power is added to it. Any network attack or attempt to modify the blockchain would necessitate sufficient computing power to confirm multiple blocks before the rest of the network could verify the ledger's accuracy. That type of attack is prohibitively expensive for popular blockchains like Bitcoin or Ethereum. Hacked cryptocurrency accounts are typically linked to lax security at a centralized exchange. It is far more secure to keep your crypto assets in your own digital wallet than on an exchange.

#### Transaction costs

When compared to other financial services, the cost of transacting in cryptocurrency is relatively low. A domestic wire transfer, for example, could range around $20 or more. International money transfers can be even more expensive. On the other hand, transactions involving cryptocurrencies are typically less expensive. However, you should be aware that increased demand on the blockchain may result in higher transaction costs. Even on the busiest blockchains, median transaction fees remain lower than wire transfer fees.

#### Transparency

All cryptocurrency transactions are recorded on the publicly available blockchain ledger. Anyone can use tools to look up transaction data, such as where, when, and how much cryptocurrency someone sent from a wallet address. Anyone can see how much cryptocurrency is stored in a wallet. This level of transparency has the potential to reduce fraudulent transactions. Someone can demonstrate that they sent money and that it was received, or that they have the funds available for a transaction.

#### Privacy

Because you do not need to open an account with a financial institution to use cryptocurrency, you can keep your transactions private. Your transactions have an identifier on the blockchain or your wallet address, but they contain no specific information about you.

In many cases, this level of privacy is desirable (both innocent and illicit). However, if a wallet address is linked to an identity, all transaction data is made public. To enhance the privacy of cryptocurrency, there are several ways to further mask transactions as well as several coins that are privacy-focused.

#### Diversification

Cryptocurrency can provide investors with an alternative to traditional financial assets such as stocks and bonds. While there is limited historical data on the price action of the crypto markets in comparison to stocks or bonds, the prices appear to be uncorrelated with other markets so far. As a result, they can be a good way to diversify your portfolio.

You can generate more consistent returns by combining assets with low price correlation. If your stock portfolio falls, your cryptocurrency asset may rise, and vice versa. Still, crypto is generally very volatile, and if your asset allocation is too heavy on crypto, it may end up increasing the volatility of your overall portfolio.

#### Inflation protection

Many people believe that Bitcoin and other cryptocurrencies provide inflation protection. The total number of coins that will ever be minted in Bitcoin is strictly limited. As the money supply expands faster than the Bitcoin supply expands, the price of Bitcoin should rise. There are numerous other cryptocurrencies that use supply-control mechanisms and can act as an inflation hedge.

#### High risk and the potential for high rewards

There are over 10,000 cryptocurrencies on the market today, each with its own unique set of characteristics. However, all cryptocurrencies share a few characteristics, such as their proclivity for sudden price increases (and decreases). Prices are primarily determined by the supply of coins from miners and the demand for them from buyers, and these supply-demand dynamics can result in substantial profits. From July 2021 to December 2021, the price of Ethereum, for example, nearly doubled—a huge payday for investors who got in early.

### Cons

#### It takes time and effort to understand cryptocurrency.

It can take some time to understand cryptocurrency. If you aren't a digital native, the concept of cryptocurrency (let alone the blockchain) can feel foreign. And attempting to invest in something you don't fully understand is a risk in and of itself. There are numerous online resources to assist you, but you will still need to devote some time to truly understand the benefits and drawbacks of investing in cryptocurrency.

Newcomers to cryptocurrency are vulnerable to security risks.
Cryptocurrencies may not have the risks associated with using central intermediaries, but that doesn't mean they're completely secure. As a cryptocurrency owner, you risk losing the private key that allows you to access your coins—and thus all of your holdings. Then there's hacking, phishing, and all the other malicious attempts to gain control. This is something that seasoned investors are aware of, but newer investors are more vulnerable to these types of traps.

#### Cryptocurrency has significant scalability issues.

You could be forgiven for thinking that digital currencies operate at breakneck speed—and, to some extent, they do. However, at some point, they run into major issues that make large-scale implementation difficult. Cryptocurrency providers acknowledge this is a problem, with Ethereum developers claiming that the blockchain has reached "certain capacity limitations" that slow the rate at which transactions can be processed. This can be a frustrating experience for transaction participants, let alone the potential financial losses.

#### Cryptocurrency is a high-risk investment.

While the price of a cryptocurrency can skyrocket to dizzying heights, it can also plummet to terrifying lows in an instant. So, if you're looking for consistent returns, this may not be the best bet. The cryptocurrency market is built on speculation, and its small size makes it more vulnerable to price fluctuations. This, in turn, can have a negative impact on the value of coins, which is one of the major disadvantages of cryptocurrency.

#### Cryptocurrencies have yet to be proven as a long-term investment.

While cryptocurrencies have grown in popularity, it's important to remember that they've only been around for a little more than a decade. The concept only became widely known after the publication of a white paper on Bitcoin in 2008. Stock markets, on the other hand, can trace their roots back centuries. For example, the London Stock Exchange was established in 1801. For millennia, gold has been a reliable store of value. But what about cryptocurrencies? Nobody knows what will happen to cryptocurrencies in the future, and as an investor, you must be brave to venture into these uncharted waters.

## Conclusion

For new investors, cryptocurrency can be a minefield. It's a topic that takes some getting used to, from unfamiliar terminology to complex technology. Trading cryptocurrencies, like everything else, has advantages and disadvantages, and so it is critical to educate yourself first—and Plentina blogs can help. We can show you all the benefits and drawbacks of cryptocurrency, whether you want to use it to pay for everyday necessities or to diversify your investment portfolio.

Moreover, it is important to bear in mind that there is no single cryptocurrency that is significantly better than the others.  Although it is one straightforward approach to select the market leader, which, in this case, is Bitcoin, as it is the original cryptocurrency as well as the one with the most information, it still all comes down to personal preference. There are a few things to keep an eye out for. Consider your personal risk tolerance–can you afford to lose a significant portion of your investment if the value of your chosen coin falls? Do you intend to use the coin solely to generate returns, or do you also intend to use it to pay for things? Is it only about the money, or do you want to invest in a coin that will have a broader social or environmental impact? These are just some of the important questions and considerations that one must be aware of when deciding whether or not to invest and delve into the realm of cryptocurrency. 


Cryptocurrency, also known as crypto-currency or crypto, is any type of digital or virtual currency that uses cryptography to secure transactions.  Learn more.

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What You Need to Know About Cryptocurrency | Plentina

Is it a Good Idea to Invest in Cryptocurrency?

Global brokerage investing is a form of investment that enables investors to access international markets beyond their local stock exchange. With global brokerage investing, Filipinos have the opportunity to invest in the stock markets of countries worldwide, with a wide range of investment instruments.

In the past, investing in international markets was typically reserved for large institutional investors, but advancements in technology have made it possible for individual investors, including Filipinos, to access global markets through online brokerage platforms.

There are different types of global brokerage investing, including direct investment in foreign stocks, and investing in internationally-focused mutual funds and exchange-traded funds (ETFs). Investors can use online brokerage platforms to purchase stocks and bonds traded on foreign stock exchanges, and these platforms often accept Philippine pesos as a trading currency.

Through global brokerage investing, Filipinos can invest in leading global companies from different sectors, such as technology, healthcare, consumer goods, and financial services, among others. This provides the opportunity for diversification of their investment portfolio, which can lower their risk exposure to the Philippine stock market.


How Does Global Brokerage Investing Work?
## 
To invest globally, Filipinos must open a global brokerage account with a brokerage firm that offers access to international markets. Investors should take time to select a reputable brokerage that offers cost-effective and easy-to-use platforms, suitable for their investment objectives.


The brokerage platform typically provides access to real-time market data and research, fundamental financial data on companies, and can offer trading services in multiple currencies. The brokerage may require investors to complete an application that includes financial and personal details and may also have investment minimums.

Once approved to transact on their platform, investors can access research, news, exchange rates, and different types of investment products like stocks, government and corporate bonds, futures, options, and ETFs, to name a few.

In most cases, global brokerage investing requires investors to pay a commission fee, which may vary depending on the type of investment being traded, the quantity of shares or bonds, and the exchanging currency. Some brokerages may also impose other fees like currency conversion or account maintenance fees, depending on their terms and conditions.

Global brokerage investing makes it possible for Filipinos to go beyond investing in the local stock exchange by giving them access to the international markets. This type of investment provides investors with numerous investment opportunities, diversifying their portfolios and potentially reducing their overall portfolio risk. By doing thorough research and using a reputable brokerage platform, Filipinos can take advantage of this unique investment opportunity and potentially maximize their returns on investment.

Global brokerage investing offers several advantages for Filipinos. 

Here are some of the most significant benefits:
## 

### Diversification
One of the most significant benefits of global brokerage investing is diversification. Investing solely in the Philippine Stock Exchange (PSE) can lead to concentrated risk in your portfolio. Global brokerage investing allows you to invest in a variety of sectors and companies worldwide, reducing the risks of a downturn in the local market.

By investing in different markets, you could minimize the effects of market volatility in any particular country or sector. Additionally, you can diversify your portfolio through investing in different types of global investment products like stocks, bonds, and mutual funds.

### Access to More Investment Opportunities
Investing globally opens up a world of investment opportunities. Access to companies, sectors, and industries that aren't available on the local stock exchange provides Filipinos with the potential to achieve higher returns on investment.

With access to global markets, investors can take advantage of burgeoning opportunities, including access to innovative companies and industries that can boost their long-term investment returns. There are globally-focused companies that address specific market interest or problems such as climate change, by harnessing renewable energies or health problems by developing new therapies.

### Exposure to Different Currencies
Global brokerage investing exposes investors to various currencies worldwide, potentially providing opportunities for currency gains. Currency fluctuations can have a substantial impact on returns on investments. By having exposure to different currencies, investors can take advantage of currency fluctuations and potentially maximize returns.

Additionally, having an international portfolio can also protect against local currency depreciation, providing a hedge against domestic inflation risks. Investing globally can provide greater investment flexibility, enabling investors to benefit from compelling investment opportunities across diverse economies and industries.

### Potential for Higher Returns
Global brokerage investing provides investors with the potential for higher returns on their investments. By expanding investment opportunities beyond the local stock exchange, investors can take advantage of economic growth and profit from foreign companies. Potential higher returns also come with higher risks, requiring sound investment strategies and thorough research to ensure optimal investment returns.

Global brokerage investing can offer many benefits to Filipino mid-level managers by providing greater diversification of their investment portfolio, access to more investment opportunities, and exposure to new currencies. Investing globally can also provide the potential for above-average investment returns through economic growth and profit from foreign companies. However, investing globally also requires thoughtful planning and research to ensure that investors make informed decisions aligned with their risk and investment objectives. Nevertheless, by combining a well-diversified portfolio and disciplined investment strategy, global brokerage investing can be an excellent opportunity to grow your wealth and achieve your financial objectives.



With global brokerage investing, Filipinos have the opportunity to invest in the stock markets of countries worldwide, with a wide range of investment instruments.

Global Brokerage Investment

What is Global Brokerage Investing? | Plentina

What is Global Brokerage Investing?

Whether it's an unexpected medical bill, a job loss, or a natural calamity, emergencies can occur at any time, and they can be financially devastating if you're not prepared. That's why it's essential to build a solid emergency fund as a financial safety net.

An emergency fund serves as a buffer to protect you from financial difficulties that may result from unexpected expenses. It's a critical part of financial planning and can help you avoid high-interest debt, preserve your savings, and provide financial security.

## How Much Should You Save?
 
Experts suggest that you should aim to save at least three to six months' worth of living expenses in your emergency fund. This amount varies based on your profession, family size, and financial responsibilities. It's important to evaluate your monthly expenses, including food, rent/mortgage, utilities, transportation, and other regular bills, to determine how much you should save.

For Filipinos, building a solid emergency fund can be challenging given the current economic climate. However, it's essential to prioritize savings to reduce financial risks and secure a better future.

## Here are some tips to help you build a solid emergency fund:
 
###  Create a Budget

Creating a budget will help you determine where your money is going and identify areas where you can reduce expenses. You can use a budgeting app or a spreadsheet to keep track of your earnings and expenses, ensuring that you're saving regularly.

###  Automate Your Savings

Automating your savings can provide a hassle-free way to build your emergency fund. You can arrange to have a specific amount transferred from your salary account to your emergency fund account every month. By automating your savings, you won't have to worry about manually transferring money to your emergency fund account, ensuring consistency in your savings.

###  Start Small and Increase Gradually

Building a solid emergency fund doesn't happen overnight, and it can be challenging, especially for those with limited income or high expenses. Startsmall, and gradually increase the amount that you set aside for your emergency fund. This way, building your emergency fund will not feel like a burden to your finances. 

###  Keep Your Emergency Fund Separate

Keeping your emergency fund separate from your other accounts can help you avoid spending the money when it is not an emergency. You can open a dedicated savings account that earns interest, to keep your emergency savings safe.

###  Use Your Windfalls

Windfalls refer to any unexpected financial gain or gift, such as a bonus or tax refund. Although it may be tempting to splurge on luxury items, it's wise to use windfalls to boost your emergency fund to ensure financial stability.

Building a solid emergency fund is essential to protect yourself against unexpected expenses that may cause financial stress. By creating a budget, automating savings, starting small, keeping the fund separate, and using windfalls, you can slowly build your emergency fund  to ensure your protection in times of financial difficulty. While it may be challenging to build an emergency fund, the peace of mind it provides is immeasurable. With proper planning and discipline, you can secure your financial future by building a solid emergency fund.


An emergency fund serves as a buffer to protect you from financial difficulties that may result from unexpected expenses.

building emergency fund

5 Tips to Building a Solid Emergency Fund | Plentina

5 Tips to Building a Solid Emergency Fund 

Financial independence is a state wherein an individual has enough money to provide for their needs and wants without having to rely on anyone else. One of the best ways to get there is by saving your money and investing in financial assets like stocks and bonds. You can also have a side hustle or work as an independent contractor to bring in more income.

To achieve financial independence, you need to learn how to save and invest your money. When investing, the most important thing to remember is that you should not put all your eggs in one basket, which means that you should diversify where you are going to put your money and not just put everything into your savings account or only stocks or bonds. It's also important to pay attention to the investment strategy and company size as well as the risk level of your investments.

**First, build your income**

Your initial revenue will be derived primarily from your paycheck. You will need to start participating in the economy by exchanging your time for money, just like everyone else who is going through the early stages of financial independence. However, this is not done through just your employment. It may also be done through your side businesses, where you use the skills you acquire at work or through hobbies to generate additional income.

The objective is to eventually make enough money to set aside money for savings. In the beginning, you may be able to just get by, but as you go up the ladder and advance in your job, your economic premium will rise, allowing you to develop the habit of saving consistently.

**Save, save, save!**

Establishing an emergency fund is highly advised before you begin investing. In the event that you lose your job and have trouble finding another one, having an emergency fund is essential. It's also useful if you lose one of your revenue streams and your overall income is insufficient to cover your household's expenditures.

Our advice is to set aside three to six months' worth of spending. In actuality, you are making an investment in your mental health. Place this money in a savings account, and use it only in times of emergency. This amount ought to be able to support you and your family in case you find yourself in between jobs.

**Consider investing**

You can consider all the available investment options in the market once you have established your emergency fund and amassed enough wealth that you feel comfortable investing. How much money you have to invest, how much risk you can take, and whether you choose long-term or short-term investments are all important considerations.

[Investing is the most important thing to do in order to attain financial independence faster.](https://www.plentina.com/blog/what-you-should-know-about-investing) There are many different strategies, but it all comes down to what you want your investment plan to be. If you're looking for a more secure or predictable return, then investing in bonds or other debt instruments might be a good idea. If you want more risky investments and higher returns, then stocks might be a better option. 

You have the following choices, although the options are not limited to just these:

- Stocks
- Treasury Bonds
- Unit Investment Trust Funds
- Mutual Funds
- Time Deposits
- Rental Properties
- Opening a Side Business

You ought to diversify your investment portfolio as much as possible. Diversifying your assets can assist in limiting your losses in the event that one of your other investments doesn't work out, because no investment return is 100% guaranteed.

Once you've experimented with several assets, you should keep expanding your portfolio until ideally, your investments are generating enough income to support your expenses. If you choose low-risk, low-reward assets, this may not be attainable for many years. However, if you have the time or the risk appetite to make long-term investments that have a high potential for payoff, your generated income may increase considerably.

You may be able to retire and spend your days doing what you love if you've reached the stage when your assets provide more income than your day job and you've saved a sizable sum. Your family's financial security will be strengthened by the passive income you get from your assets.


Financial independence is a concept that many people are striving to achieve. But what does it actually mean?

What you need to know about financial independence-02.png

Guide to achieve financial independence | Plentina

Guide to achieve financial independence

Majority of Filipinos live from paycheck to paycheck, struggling to make ends meet. According to BSP’s most recent Consumer Expectations Survey (2022), around 70% of Filipino households do not have savings. With the rising cost of living and unexpected expenses, many are left feeling financially and mentally exhausted. This is where financial planning comes in. In this blog post, we will share the importance of financial planning, and how it can make a substantial difference in your life.

## Define Your Financial Goals and Priorities
 
Financial planning is not just about money; it is about setting realistic short-term and long-term financial goals. You can define your financial priorities and lay out a clear plan to achieve them. Whether it is saving for retirement, buying a house, or paying off debt, you can assess your current financial standing and set practical and attainable goals.

## Set A Clear Plan of Action

Once you have established your financial goals, the next step is to create a practical plan of action. This plan should involve a review of your income, expenses, and savings. Knowing your income and expenses can help you create an achievable budget that allows you to properly budget - setting aside enough for expenses, savings and even investments. By following a clear, concise plan, you can avoid overspending and stay on track to achieving your financial goals.

## Ensure You Are Prepared for the Future

One of the significant benefits of financial planning is that it helps you prepare for the future. Whether it is setting up an emergency fund or investing in stocks, financial planning can help you prepare yourself for unexpected expenses. By taking steps towards financial stability, you can secure your future and that of your family.

Help You Optimize Your Savings and Invest Wisely

Once you have established your financial goals and have a clear plan of action, the next step is to optimize your savings and investments. A financial advisor can guide you in managing your money effectively and provide advice on safe and profitable investment options. By investing wisely and making informed decisions, you can ensure that your money is working for you.

## Relieve Financial Stress and Improve Your Quality of Life

Lastly, the most significant advantage of financial planning is that it can alleviate financial stress and improve your quality of life. By taking control of your finances and having a clear plan, you can reduce anxiety and worry about money. This, in turn, can improve your well-being and help you lead a more fulfilling life.

Financial planning is not just for the wealthy or those nearing retirement age. It is essential for everyone, regardless of their income or life stage. By working with a financial advisor, you can define your financial goals, create a clear plan of action, and take steps towards financial stability. Remember, financial planning is not a one-time event, but an ongoing process that requires commitment and discipline. So start planning today and secure your financial future!

Reference:
[Bangko Sentral ng Pilipinas. (2022). Consumer Expectations Survey Report. ](https://www.bsp.gov.ph/Lists/Consumer%20Expectation%20Report/Attachments/21/CES_4qtr2022.pdf.) 

Learn the  importance of financial planning, and how it can make a substantial difference in your life.

Importance of Financial Planning

Why Every Filipino Should Take Financial Planning Seriously | Plentina

Why Every Filipino Should Take Financial Planning Seriously

## What is investing?
Investing is the process or act of purchasing assets that appreciate in value over time and offer returns in the form of income or capital gains. This means that you are putting money over a long period of time in an asset, project, or endeavor in the hope of making a profit or gaining from it. In a broader sense, investing can also mean devoting time or resources to bettering your own or others' lives. But in the world of finance, investing refers to the act of buying securities, real estate, and other things of value with the intention of making money. 

One can invest in a variety of activities, such as using capital to launch a business or buying assets like real estate with the intention of renting it out and/or selling it at a profit in the future.

## How does investing work?
The simplest way to understand how investing works is to buy an asset for a low price and then sell it for a higher price. This type of investment return is referred to as a capital gain. 

One way to make money investing is to generate returns by realizing capital gains or selling assets for a profit. Another way to get return on your investment is through setting up an income stream or cash flow. When you purchase and hold assets that produce income, investing works by providing an income stream in addition to possible rewards from capital gains and appreciation. 

The objective of income investing is to purchase assets that produce cash flow over time and hold onto them for a period of time. You may or may not choose to realize capital gains by eventually selling the asset.

## Savings vs Investment
While it can be a common mistake to interchange the term “investment” with “savings,” the two concepts are very different from each other. Saving usually refers to setting money aside for immediate or future needs, such as an emergency fund or a major purchase. 

Savings are typically simple to access when you need money. In contrast to saving, investing involves putting money to work, which carries an implicit risk that the related project could fail and cause a financial loss. One way in which investing differs from speculation is that the latter involves trying to profit on short-term price fluctuations rather than using the benefit of a long time horizon when putting the money to work.

## Risk and Return Tradeoff
Risk and return tradeoff is a trading principle used by investors and traders which revolves around the idea of high-risk-high-reward. According to the risk-return tradeoff, as risk increases, so does the potential return. Investors link low levels of uncertainty to low potential returns and high levels of risk or uncertainty to high potential returns. The risk-return tradeoff states that investing money can only result in higher profits if the investor is willing to accept a higher likelihood of losses.

The right risk-return tradeoff depends on a number of variables, such as the investor's risk tolerance, the number of years until retirement, and the possibility of recovering lost funds. In order to create a portfolio with the right balance of risk and reward, time is also crucial.

The risk-return tradeoff is one of the crucial factors that investors consider when making investment decisions and when evaluating their portfolios as a whole. The risk-return tradeoff at the portfolio level can take into account evaluations of the concentration or diversity of holdings as well as whether the mix presents an excessive amount of risk or a lower-than-desired potential for returns.

## Types of investments
There were only a few common asset classes that people or investors use for their investment. However, as the financial platform and market develops, there have been new types of assets where people invest and put their money for appreciation. There are also funds like mutual funds and exchange traded funds (ETFs) that purchase various combinations of securities to help individual investors diversify their portfolios. By purchasing these funds, you can invest in hundreds of different assets.

### Stocks
Companies raise money by selling stock to finance their operations. Purchasing stock entitles you to a portion of a company's assets and lets you share in its profits (and losses). Some stocks also distribute dividends, which are sporadic small payments made from earnings. Stocks carry a higher risk than some other investments, because there is no guarantee of returns, and specific companies may fail.

### Bonds
When businesses and governments need to raise capital, they borrow funds from investors by issuing debt, which is known as bonds. When you buy bonds, you're giving the issuer a fixed-term loan of money. The issuer will repay your loan to you along with the money you initially advanced to them, plus a fixed rate of return.

Bonds are also referred to as fixed income investments due to their guaranteed, fixed rates of return, and they are typically less risky than stocks. However, not all bonds are “safe” investments. Some companies that issue bonds have a bad credit history, which suggests that they may be more likely to miss their repayment obligations.

### Real Estate
Purchasing a house, a building, or a plot of land will allow you to invest in real estate. Real estate investments come with varying levels of risk and are influenced by a wide range of variables, including local government stability, crime rates, economic cycles, and crime rates.Consider purchasing shares of a real estate investment trust (REIT) if you want to invest in real estate without directly owning or managing any property.

Companies known as REITs use real estate to produce income for their shareholders. They sometimes offer higher dividends than other types of assets.

### Commodities
Agriculture products, energy products, and metals, including precious metals, are all considered commodities. These assets, whose prices are based on market demand, are typically the raw materials used by an industry.

Purchasing "physical" goods entails acquiring large quantities of these goods, such as gold, wheat, or oil. This is not how most people invest in commodities, as you might imagine. Investors instead use futures and options contracts to purchase commodities, which often do not entail actual exchange of physical goods. 

Other securities, such as ETFs or purchasing the stock of companies that produce commodities, can also be used to invest in commodities. Investments in commodities can be relatively risky.

Trading in futures and options frequently involves using borrowed funds, which increases your risk of losing money. Because of this, purchasing commodities is typically reserved for more seasoned investors.

### Cryptocurrency
Cryptocurrencies are digital currencies and are not backed by physical assets or securities. They are monitored on digital ledgers and exchanged between willing parties without the use of a broker or middle man. Any investor can buy cryptocurrency through brokers or from well-known exchanges like Coinbase or mobile apps like Cash App. Financial derivatives, like CME's Bitcoin futures, as well as other instruments like Bitcoin trusts and Bitcoin ETFs, are two other popular ways to invest in cryptocurrencies.

Cryptocurrency investment is regarded as highly risky. Even the most well-known cryptocurrencies have much more volatile prices than other types of assets, such as stocks. Future regulatory changes may also have an impact on cryptocurrency prices, with the worst-case scenario being that cryptocurrencies are made illegal and lose all of their value.
 
## Why should you start investing?
The act of investing involves placing money in an asset to make money or make a profit. It is a productive way to invest your money and possibly increase your wealth. Your money may grow in value and outpace inflation if you make wise investment decisions. The power of compounding and the tradeoff between risk and return are the main reasons investing has a higher growth potential.

The type of investment you select may depend on your goals for the money and your risk tolerance. In general, taking on less risk results in lower returns, and taking on more risk results in higher returns. However, it's important to exercise caution when investing. The amount of time needed to study, research, and think through what is required to begin your investment will largely depend on the type of investment as well as your financial situation, needs, and investment goals. 

Take time to research your target investments as well as your investment manager or platform. As the seasoned and successful investor Warren Buffet said, "Never invest in a business you cannot understand.”


Investing is the process or act of purchasing assets that appreciate in value over time and offer returns in the form of an income stream or capital gains. 

What is Investing.png

How should you start investing? | Plentina

Understanding the Basics of Investing

Credit cards can be beneficial and can come in handy when doing purchases. It has lots of benefits however, when not used and managed responsibly, it could cause the owner to drown in debt and have a long-term negative impact to his or her financial health. To maximize the benefits of using credit cards to its full potential, here are some tips that can help you handle your credit cards responsibly;

**1.       Understand the terms and agreement of your credit card carefully.**

When you open a new credit card account, the first thing you should do is read the credit card customer agreement and the account opening disclosures thoroughly. Usually, these terms and agreement conditions are provided to the applicant before the application, and when approved, is emailed to the applicant together with the credit card.

By understanding the rules and guidelines of the lending company, you'll know what to expect in terms of due dates, fees, interest rates, and other details.

**2.       Pay your card bills on time or before the due date.**

You should avoid missing paying your payments and always make your payments on time. This is because your payment history is a significant factor in your credit scores. Missed or late credit card payments can not only harm your credit, but they can also result in late fees and interest rate increases.

You could think about setting up automatic payments or electronic reminders to help you pay on time.

**3.       Set up alerts.**

To avoid missing your payment schedules, you could think about setting up automatic payments or electronic reminders to help you pay on time. You can now set up real-time alerts with many lenders and credit card providers so that you get an email or text each time your card is used. You can then notify the business of the error and challenge the charge if a vendor triple bills your account for a single item.

**4.       Follow the Snowball method in paying off your debts.**

If you haven’t heard about the snowball method, it’s a popular method of paying off debt that is commonly recommended by lending companies. Here’s how it works;

- Pay off the account with the lowest balance first. To pay off the debt as quickly as possible, you should put as much money as you can into this account. At the same time, you will continue paying the minimum amount due on all other accounts on time to avoid late fees.

- Once you’re done paying off the account with the lowest balance, allocate your remaining amount to the account with the next lowest balance while still paying the minimum amount to the other accounts on time – again to avoid late fees. 

- Just keep repeating the process until you have paid off all your debt balances.

This method works for many but it doesn’t necessarily mean it will work for you too. You can maybe try other methods you feel is more efficient for you in managing your debt balances.

**5.       Track your spending.**

Studies show that using a credit card as opposed to a debit card or cash makes it much simpler to overspend. That's why it's a very critical responsibility to track and understand precisely where your money is going each month. Until your bill arrives, that tiny piece of plastic may feel like counterfeit money which you have to be very conscious of handling. Making a monthly budget, whether using an app or the more traditional pen and paper method, has proven to be helpful for many people in keeping track of their hard-earned money. They can manage their credit card debt and other obligations by sticking to their budget.

**6.       Do not overspend.**

Charge only what you can afford to pay off on your credit card. Pay off the entire balance on your credit card or at least the minimum amount due on or before your due date to keep your credit card in good standing and receive all of its benefits.

**7.       Stay below your credit limit.**

Use only your credit card when it is truly for a necessary purchase. And, it is even better to keep well below your credit limit.
Why? Your credit utilization ratio—how much of your available credit you are using—could have an impact on your credit scores. Additionally, your credit score may be better the lower your credit utilization ratio. Most lending institutions advise utilizing no more than 30% of your credit limit.

**8.       Regularly monitor your credit report.**

You should always keep a close eye on your credit. You can stay on top of your situation by keeping an eye on your credit. It's also a further way to assist you in identifying mistakes and potential fraud attempts that might be damaging your credit.
To monitor your credit report regularly, you can request for a [CIC credit report](https://www.creditinfo.gov.ph/about-your-cic-credit-report) in person to your lending company or refer to online websites such as the CIBIApp and apply to check your credit score.

**9.       Build your own emergency fund and do not heavily rely on your credit card.**

Emergencies arise, and in an ideal world, you would be able to use your savings rather than relying on a credit card to cover an unplanned expense. If you don't already have one, [setting up your emergency fund](https://www.plentina.com/blog/tips-to-building-a-solid-emergency-fund) as soon as your credit card debt is under control should be one of your top priorities. In general, a much better safety net for these circumstances is an emergency fund.
 
Credit cards can be a useful tool for financial matters such as building credit, traveling, handling emergencies or unforeseen expenses, and earning rewards. A rewards credit card gives the cardholder rewards for making purchases, as the name suggests such as cash back, discounts on gas station purchases, to name a few. One of the main benefits of credit cards for those who use them frequently is the ability to earn rewards. However, just like anything else, credit cards can be dangerous when used recklessly, and can be very advantageous if you learn how to use them sensibly and obediently. There are numerous benefits to continuing to use credit cards, which can make your life much more convenient. 

Credit cards can have lots of benefits however, when not used and managed responsibly, it could cause the owner to drown in debt. 

Tips in Using Your Credit Card Responsibly

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