To Filipinos Out There What Minimum Savings Amount Will Make U Feel Secured At The Moment

Is having a savings account worth it?

We all pretty much have to have a checking or current account nowadays, but a separate savings account is not always necessary - it depends on your behaviour. Some points are relevant:Savings account(s) can be good for setting aside different pots of money for different purposes.Savings accounts tend to offer marginally higher rate of interest (although it’s all rather tiny at the moment).If you need the discipline of having your money in a savings account, rather than psychologically more accessible in your current/checking account.If you have larger sums of money, you shouldn’t keep them all in one bank - have a couple of accounts.Very long-term (20+ years), savings just about keep pace with inflation (that’s only if you get best interest rates and minimise taxes etc.), so likely to lose via inflation and huge opportunity cost of a saving account vs. investment.Sometimes cash is king - don’t invest too much money. Lots of cash puts a nice wedge between you and financial poverty. Cash can be deployed at favourable times.Hope that helps

Philippines: Why does it seem that every Filipino is in debt?

I have worked with lot of Filipinos and i can say that they clearly have a very bad money management and attitude towards money. All my employees kept asking for advance salary all the time and it wasn't one of two but all of them. I also observed that they have habit of enjoying on others money. They are just too lazy and precisely for this reason i had stopped our operations in Philippines.Ask a Filipino girl for a date and her dream boy- first thing she would tell you is that she is looking for someone who can help her “financially”.No matter how much they earn they spend 2x their income and then they are not left with anything as most of their salary goes in paying debts.I will give you an example. I used to give one employee 40,000 pesos ($800/month). What she did after 2–3 months of salary? She bought a new SUV which would cost over $12–15,000. And then she kept asking me if i can pay her 2–3 months advanced salary. Its same with almost everyone I came across.Filipinos like to spend levishly and live life beyond their affordability and thats why they are always under debt and financial stress.I always used to tell them that you should atleast have 6 months of savings as an emergency fund so that they are not caught offguard. Only way out to to ensure you save atleast 10% of what you earn and don't touch that fund. Invest and reinvest. Keep some part of that emergency fund in such a way that you can withdraw immediately in emergency. Other part you should invest in something like Fixed Deposits, Mutual funds, SIPs etc.Don't live life on month to month basis. You should in any situation have an emergency fund which can last you and your family for atleast 6–12 months.

If someone put 1 million dollars in a bank account, what would they earn in interest in a year?

Interesting question, and as soon as I saw it, I did the math. Here’s the thing, though. You have to define “savings.” I’m going to assume the searcher meant “savings account.” But even then, are we talking regular brick-and-mortar bank savings account, or a high-yield savings account?Let’s assume you put the money in a savings account, and took out the interest every year to live on.$1,000,000 in a brick-and-mortar savings account, earning 0.02% a year (pretty standard), would earn only $2,000 – could you live on that?$1,000,000 in a savings account earning 5% a year would yield $50,000. How about $50,000 – could you live on that?Most banks offer an account that will pay you a higher interest rate if you keep a significant amount of money in the account – $1,000,000 certainly counts as a “significant amount.” For example, Bank of America offers a Money Market Savings Account that would pay 1.55% on $1,000,000 – thus yielding $15,500 on your cool million.What about insurance? Well, the Bank of America account says it’s FDIC insured “to the maximum amount allowed by law.” I’m not really sure how much that is, but I do know that most online high-yield savings accounts are insured up to $250,000. Maybe you should just spread your million out between savings accounts at four different banks!Still, the Bank of America money market account doesn’t give you as good of a rate as an online savings account: ING’s Orange Savings offers 2.75% APY on any balance – whether you’ve got $1 or $1,000,000 in there. On $1,000,000 that would be $27,500 a year – perhaps that’s a bit closer to money you can live on?Ideally, though, if you have a million dollars, you might want to look into investing it in something a little more aggressive than a savings account, especially if you’re young and you don’t have to live off the money.