INVESTING in and receiving money from the mushrooming of investment schemes in Davao Region have been dominating discussions on social media, the airwaves, and even among peers.
Despite warnings from the Securities and Exchange Commission (SEC), people continue to invest in these schemes in the hopes to be able to get more than what they are receiving financially.
With the huge returns, there are those who are saying that some who received such a large amount have no idea what to do with that much money. Some would choose to splurge, others would reinvest it for bigger returns; and some would just keep whatever they have.
Now we won't tell you to stop investing in these schemes. That is your money after all and you can do whatever you want with it. However, we would instead highly encourage those who are receiving a lot to properly manage the money you get through good financial management.
There is no guarantee that these schemes will stay for as long as you will want them to. This also means that while it is good financial source in the short term, it is not sustainable nor secure enough to ensure your financial security in the long term.
Hence, there is a need for more individuals to be more financial literate to ensure whatever money they get, will truly benefit them in the long term.
Investopedia (investopedia.com) defines financial literacy "as the education and understanding of various financial areas including topics related to managing personal finance, money and investing. This topic focuses on the ability to manage personal finance matters in an efficient manner, and it includes the knowledge of making appropriate decisions about personal finance such as investing, insurance, real estate, paying for college, budgeting, retirement and tax planning."
Instead of simply splurging the money for your wants, is it not better to set aside a portion of the huge money you gain to a much secure investment? For instance, you can already get a fairly good retirement, health, and educational plans from insurance firms. You can also put a small portion in the stock market through investment firms.
It is good that some of you are benefiting from these investments schemes. However, keep in mind that in the eyes of the law, the operators of the schemes are violating the law. We do not know when or if these schemes will collapse but once they do, we do not know if you will be able to get your money back. To be safe, at least set aside a portion of your pay-out to a legitimate investment to ensure your financial security.