Ignorance Hinders Us From Investing

Ignorance Hinders Us From Investing

In Philippines, there are only around 1% of the population who are investing in mutual fund. Considering that we are around 100 million Filipinos around the world, 1 million people investing on the very basic way of investing is a very sad reality which describes our lack of financial literacy. Reasons vary in many ways, but still the data shows we are still not into the norms of investing. Given that there are around 10 million OFWs in the world, money for investment is not the real culprit of it. Take note that the 1% Filipino investors consists mostly of those residing in the Philippines. And as we know, it’s the OFWs who have the most capacity to save and invest more.

In the US on the other hand, around 75% of their population are investing in mutual funds. There it shows the vast difference of the population in terms of investing. The financial literacy gap is clearly noticeable.


Filipinos are very low in financial literacy. Ask the 99% of the Filipinos about their investment, and they might tell you they don’t have any or they are investing in the bank thru savings account and time deposit. The rest might tell you they are investing in their house, cars, lands and other physical things that their money can buy. Sad to say, most of them cannot differentiate between assets and liabilities.

In terms of stocks and mutual funds, asking them will give you different replies like:

Stock Market is risky.

Mutual funds is for rich people only.

Don’t invest there, the market will colapse.

I don’t have big amount of money to invest.

and so on…

As you can see, these are myths but they are believing it. That is because they do not know anything about it and asking their family members and friends will also give them same results. In the end, we develop a poor knowledge about financial literacy.

Unless you are determined to change your mindset by any means, you will forever be stuck in believing those myths about investing.

We may have studied for years, but none of the those subjects develop for us are teaching us about savings and investment. Our current educational system cultivates a culture of employees wherein the norm is “study hard, get good grades and apply for a job”. In the end, most of us strive to live for the day and forget about the future. For most of Filipinos, having a regular job with regular income is considered a good life. Never mind savings and investment, they keep on believing in the “bahala na” attitude.

ofw remittance to philippines

If only Filipinos will learn the value of saving and investing for the future, I believe we are looking for a prosperous Philippines ahead. OFWs after few years will no longer work abroad as their investments will be sufficient to finance their expenses. No more people desperately looking for job as they have other income to supplement their expenses. Poverty will be reduced as more will venture into investments and business.

I do not expect all Filipinos to be investor, but at least a substantial portion of the population will. This is the only way we can move forward and dream for a better Philippines.

I have been working abroad for more than 9 years now. If there is one thing I learned as an OFW with all the racial discrimination in foreign land I’ve encountered, it is that “Filipinos belong to Philippines. There is no better place for us to live and die than our beloved country.”

P.S. A year ago, I do not know anything about investment. Then I joined Truly Rich Club by Bo Sanchez. It was the best decision I ever made in my life. Brother Bo is a spiritual preacher and at the same time, financial literacy advocate whose purpose is to help people become rich in order to serve the LORD with the money that they have. He guided me along the way, explaining how I can manage my money and make it work hard for me. Now I’m investing in stocks and mutual funds and have a clear path for my future. Soon I’ll open UITF account as well. All are made possible by his guidance and teachings on every steps to become an investor. Being OFW isn’t forever, this is my EXIT PLAN. It’s amazing how his teachings change my life. I’m inviting you to join the club too, JOIN TRULY RICH CLUB. If you have any question, feel free to leave your comment below. CLICK HERE TO JOIN

About Richard Macalintal

Hi my name is Richard. I am a Registered Financial Services Consultant in Singapore. If you have any queries or you need help on your insurance policies and investment linked products, feel free to message me :-) We can have a cup of coffee while I do financial review and give advice with regards to your finances :-) Contact me thru email rlmacalintal(at)yahoo.com or SMS me +65 82235186. Disclosure: I am a Financial Consultant of AIA. The statements or opinions expressed on this site are my own and do not necessarily represent those of AIA.

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