Inflation is the number one enemy of our savings. It is the reason why our 500 pesos today might cost only 250 pesos in the future. Inflation eats our investments. If for example you want to save 1 million pesos in 5 years but the inflation is 10 percent, your actual savings is only 900K.
So how to beat inflation? According to experts you could beat inflation it two ways:
1. Save more than what you are saving now. If you want to save 1M in five years with inflation of 10 percent, you should save 1.1 M so that you will have 1M in five years.
2. Invest your money in stock market. It is risky but it is usually have a high returns. If you are a new player, expert says that you can go for a mutual fund instead. It is less risky since mutual fund is manage by professional fund manager.
My other blogs:
http://unhappyemployee.blogspot.com/
http://pagsamba.blogspot.com/
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