QUESTION: Hi Randell, I am 22 years old and working at my first job. My dad tells me that I should already start saving for my retirement, but I think it’s too early for that. There are so many things that I want to save money for, like traveling to Europe and buying my own place. Besides, I’ll probably make more money as I get older, which means I can set more aside for my retirement. Do you think my dad is right? What’s a good age to start saving for retirement? Thank you very much! — Anna, from Facebook

Answer: Anna, your dad is right. The sooner you start saving for retirement, the better. In fact, your first job is the best time to start preparing for your golden years—even if you’re only earning an entry-level salary. There are many reasons why you should be doing it now.

You’re probably still single and living with your parents. This means you don’t have any bills to worry about or other full-time responsibilities like caring for a child. Even if you are contributing to the household expenses, this probably doesn’t amount to how much you would actually spend if you were living on your own. Given the lack of financial responsibilities at this point, you may be tempted to spend your salary on shopping and keeping up with your friends. But this is a great opportunity to begin setting money aside for your mid- and long-term financial goals.

It’s good to know that you plan on traveling the world or buying a house. These things are necessary for your growth. However, these should not get in the way of planning for your retirement.

Consider this scenario: Let’s say you begin saving for retirement at age 22. You set aside P24,000 a year (or P2,000 a month), and you putt this money in an investment vehicle that grows 8 percent a year. By the time you are 65 years old, you will have P8.5 million to use for your golden years.

Now let’s say you wait until you are 35 to start saving. You put away the same P24,000 a year, but for only 30 years, and earnings grow at 8 percent annually. By the time you are 65, you will end up with only P2.9 million. This is less than half of what you would have saved if you had started at 22!

Anna, you are very wise to already be thinking about retirement at the best age to start saving for it. And you are not the only one in your peer group. A survey I once read showed that 36 percent of Filipinos age 18-25 are already starting to prepare for their retirement. The next step is to start building your fund.

At this point, you need to make sure you use the right instrument that gives you the most returns. In this same survey I read, it shows that Filipinos age 36-45 are more reliant on traditional bank products like savings accounts, which are generally ineffective methods for growing a retirement fund. On average, a savings account will only grow 0.06 percent annually. That means if a 35-year old sets aside P24,000 a year in a savings account for 30 years, it will only grow P726,735.

Younger generations, however, seem more aware of better options for their retirement funds. Twice as many 18-25 year olds are looking to use investments for their nest’s egg, compared to older generations. It’s great to know that young adults are becoming more educated about growing their money. I encourage you to do the same and learn more about investment options.

While you are young, you can still afford to use more aggressive approaches to investment. Educate yourself about moderate to aggressive investment vehicles, like unit investment trust funds (UITFs), mutual funds and stocks. These options are high risk but have great potential to give you greater yields in the long run, which makes them ideal places to put your retirement funds in. These funds are also great places to invest money for your mid-term financial goals, like traveling to Europe or buying a house. Evaluate your expenses carefully and only place an amount that you’re sure you won’t miss. If you withdraw your money in three years or less, you run the risk of capital loss.

There are other things you need to think of when planning for retirement, such as the lifestyle you want to have when you retire, and unforeseen events like medical expenses. Read books, attend financial seminars or talk to your dad about ways to maximize your working years so you can retire comfortably. Don’t delay starting your retirement fund because the best age to start saving for retirement is now.

Let me leave you with an awesome advise written thousands of years ago: “Go to the ant, O sluggard; consider her ways, and be wise.”—Proverbs 6:6, ESV

It’s more than just putting furniture together, it’s about living smart without compromising style and function. Below are 7 tips to maximize your condo living experience.

Use multi-purpose fixtures or furniture – There’s a certain truism to the adage less is more. The smaller the furniture or fixtures you use the more space you can save. Allowing you to think of other stuff to bring in. If you are looking at bringing in large furniture, rethink your decision. There is a ton of other stuff which can be placed instead of those bulky cabinet or television set of yours. Fixtures or furniture are already available in the market that can literally shape-shift – a sofa can be a bed, a small table can be a dining table set, a coffee table with shelves, and many other more. You just need to be prepared financially as they don’t come in just mere hundreds of pesos.

If you have enough budget and planning on amping the function of your furniture to suit your taste, there are a variety of stores or companies that accommodate custom fabricating it for you.

Use pegboards – If you are working on a tight budget, then consider hanging things on the wall or making artificial walls. Pegboards or small wall décor holder normally does the trick. Coming in different sizes and easily customizable based on your preference and needs, these metal fixtures can be placed anywhere, used for anything, and a good organizer of stuff. What’s more, they are ambulant, should you decide to redecorate your unit, they are easy to take down and attach to a new wall.  Using prongs, you can fit in anything to the pegboard. From organizing your books, kitchen backsplash, accessories, keys, and other stuff these handy metal friend of yours has got you covered.

Don’t forget to paint these pegboards! 

Use colors that make your unit bigger – deception is everything. Paints help create optical illusions that make confined places look spacious and cozy. It is a generally known fact that light colors make rooms look lighter, brighter, bigger and more inviting. Soft tones such as off-white, blue, and green normally do the trick, while darker shades tend to absorb light making the room smaller and tighter. One caveat is to use lighter shades on wall trims and moulding. This makes walls appear farther back making your unit look spacious. To add to that, the right colors set the mood in the room. It can be a natural therapy for the eyes to reduce stress and boost your creativity and gives you more bandwidth to finish all your deadlines. But it all still depends on you. Choose the color that best reflects you as a person.

Use lights that promote a cozy ambiance – Cliché as it is, but proper lighting is everything. It affects the ambiance of the place and keeps the ball rolling for everything. Be it a dinner romantic date, studying for school, and beating all those deadlines, good lighting helps you achieve that. The psychological effect stimulates the creative region of our brains translating all those creative juices to your output.

If you have access to natural light, allow it to enter your room. It contributes to making the room bigger and admit it, nothing beats natural lighting!

Don’t forget the greens – while it can be a handful to take care of ornamental plants, but keeping one breaks the drudgery of life. Plants are natural stress relievers. It restores the balance of a chaotic place and the inner core of a person. On top of this, plants promote wellness. It reduces the chances of getting coughs, colds, and minor diseases. Enabling you to stay focused and ready for the daily grind.

Zone things – it all boils down to planning things out at the onset. By identifying and dividing your unit into areas based on needs and function, it is much easier to decide which furniture to buy, what are the things to add, and how much space do you need for each area. If you are in the creative industry, placing your workstation near the window helps you reboot your mind. The buildings, skyscrapers, the skies above, and glamorous lights of the city in nighttime can help stimulate something to cook up. If you live with a family, dividing the place will be a bit of a challenge but it will help you to plan well.

Always reinvent – redecorating is not just an avenue to maximize your space, but an opportunity to earn. Annual refurnishing allows you to revisit the things you still need and things you can dispose of. It helps you start anew and upgrade the furniture and assets you acquired the previous year/s. Online apps are available to help you dispense these lucratively.

As the Philippine economy continue to provide more opportunities for the Filipinos, the earning capacity of our population has improved through the years. However, it is a well-known fact that increase in income does not always equate to financial empowerment and preparation if not coupled with proper financial education. Further achieving success is not just about financial empowerment but rather empowerment in the many other facets of life.

On September 29, 2018, I will once more organize an empowering conference to help attendees properly prepare for their future. The event is aptly called “Build Your Future” and this particular event is intended for the young professionals  through a practical and engaging half-day learning event.

I am so privileged to be joined by three amazing individuals who will all help the conference participants ‘build’ their future through the sharing of their expertise:

Ardy Abello on TOP PERFORMANCE: How to Become the Best Version of Yourself

Ardy Abello is one of the country’s leading motivational speaker and a John Maxwell and Strengths Finder certified trainer. He is one of the most sought after speakers and coaches on productivity, leadership and success.

Dennis Sy on BUILD A BETTER FUTURE: Doing Social Good to Build a Better Future

Dennis Sy is a a best-selling author and leading influential blogger and vlogger on manhood and life principles. He is the senior pastor of Victory Green Hills, a church which gathers 4000 attendees weekly.

Gabbie Tiongson on MOVING FORWARD: Designing Your Life Plan with Meaning

Gabbie Tiongson was student leader and a licensed teacher but has decided to focus on empowering students as a campus missionary. She believes in investing in the next generation.

The event will be from 1 to 6pm and will be held at the Samsung Hall, SM Aura, Taguig City.

Here’s why you should attend this life-changing event — the fee to this event is only P500.00 and it comes with my book Build Your Future Today worth P500.00! Slots are going fast so it is best if you sign up and pay to secure your slot because slots are running out fast!

To register, visit www.bit.ly/BYF2018