Retire a Millionaire on Just Php 100 a Week

You don’t need a large salary to begin building your retirement fund. I understand that it’s extremely difficult to save for retirement when you are only earning a small salary, but that doesn’t mean you can’t save money for a comfortable future. You have to realize that if you don’t plan to save now, it’s going to be even more difficult to earn/have money in your old age.

A Surprising Formula for Success

Many financial planners suggest investing a percentage of your income – like somewhere between 10% to 15%. For this post, what if we break it down into a number that’s easy for everyone to relate to—a figure that could easily cover a dinner out, a movie ticket or a Starbucks coffee?

… A Hundred Pesos (PHP 100) a week.

Let’s see what kind of future Php 100 a week could afford you if you invest in good growth stock mutual funds. That would be merely 5% of a Php10,000 salary.

Assuming a 5%-8% return,

  • In 20 years, you could retire with Php 170,000 to Php 240,000.
  • In 30 years, you could retire with Php 340,000 to Php 590,000.
  • In 40 years, you could retire with Php 620,000 to Php 1.4 million!

Keep in mind, this example doesn’t take salary increases into account. You’re not stuck at today’s income. Work hard for your money and you’ll get raises along the way. Imagine how your retirement fund could look if you increase your contributions as your income grows!

Don’t Have 40 Years to Invest?

That’s okay! It is never too late. It just means you’ll need to save more money and give it everything you’ve got in the time you do have. Pick up the pace and add oomph to you retirement savings by bringing home a little extra bacon (like having part-time work or sideline businesses). Aim to be financially secure by being debt-free with a fully-funded emergency fund. If you’re still unsure of what to do, take time to sit down with a financial planner to take a look at your options.

Remember, small daily savings can add up to a long term fortune. Think of planning for retirement as a journey. The key is to start early, save regularly, and increase the amount you save as your income increases.

photo credit: Kikki K Watermelon via photopin (license)

5 thoughts on “Retire a Millionaire on Just Php 100 a Week

  1. This is a really good tip on how to start saving, especially for people na kapag binangit mo ang word na savings ang isasagot e , kulang pa nga ung sinasahod nila paano pa mag save

    1. 10% savings? 100 pesos? Tapos yung 9900 mo yung ang expenses mo? Parang mali ata. Lets do the math again.

      Kung sinasabi mo na ang expenses mo every year is equivalent to 118, 800 pesos (9900x12months) so dapat pagretire mo meron kang 118,000 pesos na pension kada taon. (Assuming na wlang inflation dahil talo na ng interest ng mutual fund para malinis ang computation)

      Situation A:
      20 years old ka nagsimula at Naginvest ka ng 100 pesos in 40 years naging 1,400,000 pesos ngaung 60 years old ka. Ang annual spending mo ay 118,800 base sa 9900 per month. Kinuha mo ngaun ang 1,400,000 pesos mo sa mutual funds para maging panggastos mo. Kung 9900 pesos padin ang spending mo monthly e hanggang 11 years lang itatagal ng pera mo. 1,400,000/118,800=11.79 years. Pagdating mo ng 71 years old wala ka ng pera. What a sad life 😫

      Situation B:
      Ngaun let say nakaipon ka ng 1,400,000 pesos sa 40 years mo na paglalagay ng 100 pesos kada buwan sa mutual fund na kumita ng 8% kaya naging 1,400,000 pesos. Ang inflation rate average sa pilipinas lets assume 4%. So 8% interest – 4% inflation rate, meron ka ng lang 4% na tira. Yung 4% na natirang interest per annum pa yan so Yung 1,400,000 million mo naman gusto mo painteresan taon taon na lang kesa iwidraw. So 1,400,000 pesos x 4% = 56,000 pesos per year or 4,666 pesos per month. Ang kagandahan sana nito e unlimited na 4,666 pesos hanggang sa maexpire ka kaso hindi sapat dahil 9,900 nga ang spending mo kada buwan. So inshort, shorted ang 10% na savings para makapagretire ka.🤔🤔 Makes sense ba?

      1. Hi. On the figures computed above, i’m assuming that the person saves 100php a week (or 400php a month or 5200php a year) and that it is placed in a financial instrument that gives a return of 5% to 8% compounded yearly..
        I do understand when it comes to inflation, saving only 100php a week is not enough to sustain retirement. The goal of this blog post is actually to make the reader realize and encourage them that saving even a small amount of their income could be a huge impact to their financial future.

    1. Hi Chad! It’s just assuming that the person saves 100php a week (or 5200php a year) and that it is placed in a financial instrument that gives a return of 5% to 8% compounded yearly..

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