Reader Mail #18: Smart Money Moves With Your Savings

Updated: November 28, 2015

I always say that the very first thing you should do if you want to achieve financial freedom is to learn how to save money.

Be frugal, pay yourself first, avoid unnecessary expenses – it’s just some of the things you can do to start building your wealth.

And after a few months, or even just a few weeks – a feeling of satisfaction and excitement will come over you as you see cash slowly accumulating inside your savings account.

However, many people, upon reaching this stage, are often left wondering what to do next.

Should I look into investing? Should I leverage this money to start a business? Should I just leave it there and just continue to save?

These are just some of the questions we will answer in today’s Reader Mail. Questions that some of you have asked me through email and which I believe concerns many others out there.

From Ms. M

Hi, my parents just gave me P10,000 as a college graduation gift. I don’t really have anything I want to buy now but I don’t want to just let my money sleep in the bank. What should I do with the money in your opinion? Thanks and waiting for your advise.

First, congratulations and welcome to “the first day of the rest of your life”. 😀

My straightforward answer to your concern is to simply open a savings account and put the money there.

It’s time for you to start being financially independent and I encourage you to use the money for your daily expenses while you look for your first job, start a career as a freelancer or build your own business.

And even if you already have work and a salary or income that’s coming, remember that you still need to build your emergency fund.

Your lifestyle will definitely change now that you’re out of school. So focus first on tracking your expenses and planning your budget. Then save up for at least three months worth of your monthly expenses before considering your investing options.

From Mr. W

Hello. Thank you for the great advise you always give on your site. I hope you can help me with a dilemma I have regarding my savings. I’m just a regular employee but I do some freelance work during the weekends which produces extra cash for me and which I always put in a savings account.

Now, the money has become quite big and I don’t know what to do with it. Should I invest it in the stock market? I don’t want to quit my job and I don’t have time to start a business. Where can I invest the money? Thanks.

Hi. What you have is actually a “good problem” because I think everyone would like to have that kind of dilemma – not knowing what to do with money that you have in your savings account.

Assuming that you already have an emergency fund, and you don’t really have any immediate needs, then why don’t you start investing for your retirement.

Even if you’re still several decades away from being a senior citizen, it will not hurt you if you start building your retirement fund now. Actually the younger you start, the better – because you’ll potentially end up with more money at minimal investment costs than if you do this later in your career.

This is something I discussed in The Benefits of Investing Early, read that one if you still haven’t.

Moreover, there are many investment instruments out there which can help you build your wealth for your retirement. You can consult a wealth manager from your bank or seek the advise of a financial planner to get a better direction for your finances.

From Mrs. P

Good day to you Mr. Fitz. I’m a regular reader of your blog and this is my first time to write to you. I am blessed with a wonderful family and a hard working husband which have always been able to provide our needs.

Recently, I received a windfall from a relative and my husband says that I can choose whatever I want to do with it. So I’m now asking for your advise on what to do with the money. Any investment you can suggest?

My first advise would actually be to ask your husband again what would be the best thing to do with the money. As a family, you can decide and set an investment goal that the both of you can agree on. Having that will certainly guide you on where to put the money.

Emergency and retirement funds aside, you can use the money for your children. An education fund, or perhaps a trust fund for them would be a good option.

On a related note, I hope you can read an article I wrote a couple of years back, it’s entitled What To Do With Extra Money. That article gives your four things which you can do – and assuming that “all your bases are covered”, then I encourage you to focus on the last one. 😀

And that ends another edition of Reader Mail. Please remember that I am not a financial consultant and the advise given are simply based from what has been successful in my own experience.

That’s why I would like to encourage you, my readers, to also share your thoughts regarding this matter through the comments section below. Thank you.

Get more smart money tips by subscribing to Ready To Be Rich.

Photo credit: Kecko


  1. the first thing to do must be to put the money into your savings account if you are not yet sure what to do with the money. Then, be financially literate! That means learn how money works and what are the many options to make it grow given your time and personal capacities. And even if you don’t have the money yet, learn how to be financially literate so that you don’t have to have a problem when you have them.

  2. I agree with Starlight. It is best to be financially literate so that we would know what to do when the needs presents itself. I myself have begun saving and once I saw the money growing, I tend to spend it! So I said I had to put a stop to this. I got an endowment fund but sometimes I begin to think I may have gotten one too soon because I do not have yet an emergency fund. But I am not worried because thanks to blogs like this, I am learning more and more about how to properly manage my money.

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