Make the Most of Your Hard-Earned Money this 2021

Hello, 2021!  And what’s the best topic to start the year?

Of course! Money! 😊 HAHAHA  *Money money money ♫ ♪ *   

I want to write about this topic because I know a lot of young people would benefit from this. There are very few contents like this and I want to make use of this platform to discuss or at least give you guys an overview of how you can make the most of your hard-earned money this 2021.

Kindly note that some of these tips may only be applicable in Philippine setting.


Looking back, at a very young age (around 7 maybe) I would sell candies and bubblegums *illegally hahaha* inside the classroom.  During my high school and college years, I would join art or photography contests, design t-shirts, bags, and lanyards and I would always earn quite a decent amount of money from these “rakets”.


I can fully say that overtime, I had developed a wonderful relationship with money. I didn’t see money as evil. I see it as a tool, merely an amplifier. It amplifies your character and your intentions.


SO WHO WOUDNT WANT MONEY???  If money can help you reach your dreams, why not make as much money so you can share and bless more people, right?

So here are some of the “money-making machines” I just recently discovered and would love to share with you guys:

Digital Banks

There are only two completely virtual banks in the Philippines. These are the Dutch company ING and Malaysian bank CIMB. The two allow users to open an account and deposit checks completely online, relying on artificial intelligence to confirm identities and documents.

Since digital banks consume lesser operating expenses, they can offer their services at better interest rates. Unlike traditional banks that only offer 1-2% for your deposit accounts, digital banks can go over 3%, sometimes 4% p.a. (for maintaining a balance of 100K)

So for example, you have deposited 100K, after 1 year, your money will earn 3,000. That’s almost 10x higher than traditional banks.


But here’s the frequently asked question:

Is it safe?

CIMB, GSAVE (also linked to CIMB), ING are BSP (Bangko Sentral ng Pilipinas) regulated and PDIC (Philippine Deposit Insurance Corporation) insured up to 500K per depositor. This means that just like the usual banks, your money is safe and secured no matter what happens 😊


Pag-Ibig MP2

MP2 is a voluntary program that provides a higher earning potential than a regular savings account. Your savings are invested by Pag-IBIG and will earn through dividends, just like investing in mutual funds.

Since its launch, MP2 has been earning higher interest than regular savings accounts, and tax-free dividends.


In 2019, Pag-IBIG MP2 dividend rate was 7.23%, and historically, it’s been increasing year-on-year. Its highest rate so far was in 2017 with 8.11% interest rate.

The fund invests at least 70% of its investible funds in housing finance. The Fund also utilizes its funds for its Short-Term Loan (STL) Programs and also invests in government securities, time deposits, and corporate bonds.

Pag-IBIG MP2 is more of a short to middle-term investment, allowing you to have access to your funds in as early as 5 years’ maturity whereas the regular Pag-IBIG is locked in for at least 10 years.

For as low as 500 PHP a month for 5 years, your money will earn 5K +

500/month x 60 months (5 years) = 30,000 + 5K. The 5K is the sum of dividends. Thus, we call it the “compounding interest”.

The higher the money you save, the higher the dividends earned. 😊


VUL / Life Insurance + Investments

Especially nowadays, it is always better to have yourself protected at all costs. You don’t want to find yourself stuck inside the hospital with intangible debts under your name, right? Without insurance to absorb some or even most of those costs, the bills can increase exponentially

Variable life insurance (or VUL) is a product you can consider if you need both insurance and investment. It gives the ability to plan for long-term financial goals while staying insured at the same time. It can be used for education, retirement, leisure, or big purchases such as a house or car.

And if in case you die *knock on wood* and you haven’t withdrawn your accumulated funds yet, your dependents will get it tax-free.


Stocks & Mutual Funds

Stock market investing means investing directly in the stocks of the company. Here, you are purchasing the companies listed on the stock exchange with an expectation to earn profits when the price of that stock goes up.

For example, BDO Unibank, Ayala Corporation, ABSCBN, Universal Robina, etc.

There are over 300 companies listed in the Philippine Stock Exchange market.

On the other hand, a mutual fund is a collective investment that pools together the money of many investors to purchase a number of securities like stocks, bonds, etc.

A fund manager manages this fund. When you purchase a share in the mutual fund, you have a small stake in all investments included in that fund. It has a lower return compared to investing directly on stocks but it is consistently earning (though some at a fixed rate) because the fund manager distributes your eggs to different baskets.

In short, if you are into playing it safe with your investments, a mutual fund is the better option.


So, why you should invest in stocks/mutual funds?

Because this is the fastest/smartest way to grow your money.

Let me cite an example:

Last 2014, Ayala Corporation’s price per unit is 512 PHP. By 2018, just after 4 years, it almost doubled to 970 PHP/ share.

Our money deposited inside the bank can only earn as low as 0.01% to as high as 1%. It would take 70 years for you to double your deposited amount if you will just rely on that 1% growth alone hahaha!

Stock investing is made easier and more affordable than it was before so start early to maximize your gains from the stock market.

HOWEVER, this type of investment may not be for all. It requires a lot of time and patience in learning and researching the market trends. I know a lot of people lose a huge amount of money from this.

If you’re too busy for that, or you’re not confident enough to invest directly in the stock market, you can just go for mutual funds and let a professional do the investment decisions for you.



That’s it for now. This post will definitely not the last since I want to write more financial literacy-related contents for you, guys! I already started the draft for part two of this post. I recommend everyone to try these and start building your financial prosperity this 2021.

You can also check my previous money-related post here.


2020 has been quite a crazy year; I hope everyone is ready to put behind all financial strain and start fresh.

Comment down below what are other tips you can share to make more money this year!

Would love to hear from you, guyz!



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2 thoughts on “Make the Most of Your Hard-Earned Money this 2021

  1. Fantastic topic for starting 2021, Khim. The four investment streams you mentioned in your blog are indeed worth sharing. Keep it going to inspire many people!

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