🔍
What to do with (your future) ₱100,000 🤔 - YouTube
Channel: Nicole Alba
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yo congrats for your first 100 000 pesos
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awesome that's a big milestone yo it's a
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big achievement here's some bread for
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you to celebrate cheers
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yeah so in this video we're going to
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talk about what to do with your first
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100 000 pesos of cold hard cash
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whatever i say in this video may or may
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not still apply when it comes to an
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additional 100 000 pesos but yeah
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let's talk about what you can do in
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order to make sure you're able to build
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a solid financial foundation
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so that you can make the most out of
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your 100 000 pesos for the future
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[Music]
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yo what's up friends welcome back to
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this week's video if you're new here
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what's up my name is nicole and i make
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weekly videos on personal finance
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investing
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self-development and other fun and
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interesting stuff i recognize that it's
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a bit of a rough timing for this video
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especially because typhoon raleigh and
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typhon ulysses just like
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finished their onslaught really left all
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filipinos in
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big need of help so watch until the end
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of the video or at least check the
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description box below
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i'll include some links on how to help
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these typhoon victims
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yeah lots of help needed anyway we're
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going to be talking about what to do
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with your first 100 000 pesos
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first though like congrats like that's a
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big achievement that's a milestone for a
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lot of filipinos
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but let's be honest 100 000
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is pretty small it's it's not that big
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so yeah go
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celebrate good job but when you think
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about it like big picture
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when you think about retirement or in my
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case when i want to pursue financial
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independence
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100 000 good but not enough it's not
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enough to buy you a car
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a house but it does prove that you
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already have the basic financial
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foundation the financial habits in order
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to save another one hundred thousand
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another two hundred thousand
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another one million you have what it
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takes i want to re-emphasize now when
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thinking about what to do with your 100
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000 when working on your finances
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mindset is really important i want to
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put extra emphasis on that mindset is
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the foundation of everything that you do
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so i want to emphasize keeping it in
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your brain
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if you're still working towards 100 000
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you're not quite there yet
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reaching 100 000 is not impossible
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reaching 1 million pesos
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is not impossible 10 million 15 million
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super possible
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but even if it's possible i do
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acknowledge that it's
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a lot easier for some people but it's a
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lot harder for other people
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but still that's still my point it's
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possible
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it can take time but there are things
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within your control
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like your finance habits that you can
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really adjust
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in order to help you make your way to 1
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million pesos 10 million pesos whatever
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your goal is
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okay awesome establishment i can do it
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cayenne cayenne
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you need an action plan it's fun to
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dream now like oh one day i want to
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become a millionaire i want to own a
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house i want to own a car
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but if you don't do anything then none
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of those things are ever going to happen
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figure out what it is you need to do in
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order for you to get you what you want
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when working towards goals i always find
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it helpful to work backwards this is
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what you want
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but what's the step before that the step
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before that and so on so 100 000 pesos
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in your mind you can just make it as 5
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5000 pesos per
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month for 20 months after that you'll
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have 100 000 pesos
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you can do more at the 10 000. that will
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only take you 10 months
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15 000 that will only take you six to
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seven months the key is in learning how
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to manage yourself
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and how to manage your money personal
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finance is really simple
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in order for you to accumulate a lot of
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money to get rich now
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you just need to be saving more than you
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spend
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that's it it's important that whenever
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you're thinking about saving you're not
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depriving yourself of happiness of the
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things that make you happy
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no when you're saving what you're doing
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is that you're paying yourself first
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this is you doing your future self a
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favor
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so that future you has a lot of money to
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spend and enjoy
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whenever you receive as your salary or
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some sort of income
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automatic cut like a portion of that 30
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40
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20 straight into savings non-negotiable
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and the rest is left for you to spend on
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whatever you want
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you have to make sure that you take the
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willpower you take the option to spend
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out of the equation no matter what
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happens i will make sure that i will
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save 5 000 pesos
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for my salary every single month when
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thinking about what to do with 100 000
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pesos or even like
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any large sum of money one thing that
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you shouldn't do
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i say like this with air codes because
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this is just my opinion
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you shouldn't keep large amounts like
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very large amounts
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in just a regular bank account why
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inflation
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traditional banks only give you 0.1 to
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0.25
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interest per year inflation on the other
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hand the average inflation rate per year
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is 3
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this means that your money the
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purchasing power of your money
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gets weaker by 3 every single year your
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10 000 pesos today
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could have bought you so much more stuff
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10 years ago 20 years ago
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as compared to how much 10 000 pesos can
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buy today
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which is why we invest right people
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think is that when you invest it's only
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for you to
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grow your money it's like make big big
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big but no
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we also invest in order for us to
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preserve our capital to preserve the
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value of our money
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because yeah inflation you got to fight
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inflation you gotta
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like just some caveats no this would
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really depend on your circumstances i'm
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not saying you should absolutely do what
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i tell you
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no it really depends a student with no
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dependence and you have 100 000 pesos
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you're the breadwinner of your family
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or maybe you're a parent and you have
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children whatever you do with the 100
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000 or
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any large sum of money it would really
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depend on you and your situation
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so i'm not a financial advisor i don't
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do these things professionally i'm just
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sharing what i know
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but even if i was doing this
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professionally don't just like blindly
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listen to whatever i tell you just
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because it seems like i know more
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no only you can really say for yourself
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what makes sense for you what investment
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decisions or financial decisions
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make sense for you and your situation so
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always do your own research you are
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responsible for your own financial
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decisions
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i have a lot of videos on my channel
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talking about different kinds of
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investments
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but for this video given that i am a
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student with no dependents
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no stable job but earning somewhat here
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and there with my side
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of sauce this is what i would do with my
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first 100 000 pesos
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i will split it in four categories so
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that's emergency fund
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free to spend fund or opportunity fund
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index fund
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mp2 so first emergency fund i would just
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straight up put twenty thousand thirty
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thousand into
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an emergency fund eventually i'll build
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it up more a rule of thumb that people
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usually say
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is that it should be about three to six
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months worth of your expenses
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but if there's anything that the
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pandemic has taught you and with a lot
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of
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uncertainty it really makes sense that
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you should like eat on a bit more
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maybe make it six months to one year
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worth of
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expenses and i would put this in a high
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interest savings account
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it's important that this emergency fund
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won't be invested don't touch this
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emergency funds need to be easily
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withdrawable they need to be very liquid
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because they're used for emergencies
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they need to be ready
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during an emergency it's not really
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ideal to jump straight into investing
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when you don't have an emergency fund
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it's nice to have
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some level of like cushion some
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financial safety net
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that you know whatever happens if
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there's something bad that happens you
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always have money to draw from
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before investing my emergency fundamona
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or at least like do it at the same time
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i will also put about five to ten
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thousand pesos in a free to spend fund
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opportunity fund whatever you want to
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call it it's just
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cash for me that i am able to spend
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however
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i want guilt-free spending like it's not
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bad to spend it's okay to spend
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but make sure you are spending
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intentionally and you're not like
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ripping a hole in your pocket and
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accumulating large
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large amount of debt spending money that
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you don't have so yeah i find it really
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helpful to separate
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an amount of money just for me to spend
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this is it
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once this is once this is a boss i
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cannot spend
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and if ever my free to spend fun is not
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enough for the thing i want to buy
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like i said it's always nice to
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challenge yourself with ways to make
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extra money to make extra sources of
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income
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next so i'd put 30 000 pesos in an index
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fund
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you can choose to like lump sum this and
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like buy 30 000 pesos worth of index
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fund right off the bat
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or you can also pass a host average like
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5 000 pesos for a certain number of
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months
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so i personally prefer investing in
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funds instead i know
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boring investment whatever i understand
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that there's larger gain potential when
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you invest in individual stocks
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but you know there's still higher risk i
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don't want to stress over my investments
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too much
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mutual funds index funds are a boring
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investment
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but they're affordable you know they're
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affordable they're they're immediately
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diversified
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and they're beginner friendly so i
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talked more about index funds in a
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separate video
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but to keep it short no index funds here
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in the philippines
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invest in our one and only index the
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psei
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the psai tracks the performance of the
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top 30 companies here in the philippines
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so when you're investing in an index
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fund your money is immediately
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diversified
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so as an alternative to this 30 000 into
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an index fund
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you can also spend it and buy actual
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companies like individual stocks
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but i personally just prefer index funds
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my funds
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instead because i don't want to go
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through the hassle and the difficulty of
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choosing individual stocks
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make sure definitely there is a larger
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gain potential when you do that
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but it also takes time you know you need
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to really assess the company is this
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worth investing in look at their
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financial sheets etc etc
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but yeah i just personally prefer buying
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a fund instead of like
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spending all the time picking stocks
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instead i want to spend my time
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doing other things that i find more
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valuable like creating videos for you
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guys
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i would also put 30 000 in an mp2
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so this is what i consider an underrated
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investment vehicle
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that more and more people need to know
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about because everyone's a big ebig
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member you know
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we're all required to be a puggy big
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member i talk more about mp2
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here if ever you're interested in
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investing in it but in short it's a
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voluntary savings account for pagibig
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members
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in order for them to earn higher
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interest than the regular savings
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program
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and it only has a maturity period of 5
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years
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it's government guaranteed tax free and
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best of all you can start with just 500
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pesos
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yes investing has never been so easy
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and that's about it 100 000 pesos is not
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that big no you can only split in so
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many ways
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but one thing i realized when i started
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investing two years ago when i turned 18
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is that investing is so anticlimactic
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like you get so excited when you're
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starting out like oh my god i'm
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budgeting i'm opening a stock brokerage
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account i'm investing in mutual funds
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but
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after that you put your money in it and
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that's it
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make sure you have to monitor it from
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time to time you have to rebalance
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but besides that a lot of like personal
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finance in investing
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is really just one big waiting game you
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just have to wait
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for your investments to grow but nicole
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your investing recommendation is so
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boring it sucks
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what about crypto i won't see then you
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made videos about that
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can i skip all of these boring stocks
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mp2 blah blah blah that you're talking
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about
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and jump straight into the big money
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potential
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uh yeah you technically can it's still
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your choice no
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but coming from someone who has already
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tried
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putting my money into different
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unconventional
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alternative forms of investments and
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losing money in some of them
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i really learned that it's still
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important to build
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a stable foundation of boring
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investments first
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before you can like have fun with
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whatever investment after you've built
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some level foundation like okay you hold
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some stocks you have some funds
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you have emergency funds then you can
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start playing with crypto or start
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investing in seed in that can
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potentially give you much higher returns
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don't look for get rich quick kind of
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schemes because they often
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do more harm than good don't get blinded
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by really high interest rates that can
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like really eh with your decision making
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process
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because not with higher interest higher
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potential return
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comes higher risk there's no such thing
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as high return
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guaranteed no way most of the time
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they're just scams
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if it was that easy to make money in the
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first place
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then why do they need to get money from
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other people why can't they just put
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their own money into it if it was so
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legit
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right just like think about it think
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about it
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i keep emphasizing this i will never
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stop emphasizing this
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hands down the best investment you can
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ever make is investing in yourself don't
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rush into these things
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always study educate yourself level up
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your skills
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because those are the ones that really
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give you the highest return
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on your investment right i said that
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larger amounts of money are much easier
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to grow
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a five percent gain on a one million
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peso investment is much
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larger than a fifty percent gain on a
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one thousand peso investment
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so don't just spend your time getting
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blinded with chasing
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the investment that can give you higher
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and higher returns i think
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a better use of your time is really
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finding ways to increase your earning
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potential
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earn more capital save more money so
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that you have more money to invest
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and grow yeah we talk about money a lot
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no but
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especially during these times there are
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a lot of people out there all filipinos
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who need
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our help so i urge you guys to extend
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your help in whatever way you can
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to help the typhoon victims help them
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get back on their feet
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such big problems i'll link some
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organizations in the description below
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now
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wherever you guys are i hope you guys
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are safe yeah
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as always you guys can follow me on
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instagram i post stories there almost
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every day
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like the facebook page join the discord
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server thank you guys so much for
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watching i hope you guys enjoyed
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i'll see you guys next week bye
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sorry for the eaten bread how many takes
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now go
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to keep it short shorts
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we're going to talk about what you can
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do to make sure you're able to build
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for you to reach whatever you want
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that's something i always say no
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[Music]
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baby
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