How To Increase Your Net Worth Philippines

How To Increase Your Personal Net Worth Philippines: Whether you have 100,000 pesos and you’re looking to turn this into 500K, or you have 10,000 pesos wishing to turn this into 1 million, The process and opportunities on how to increase net worth in the Philippines are the same.

The right strategy on the road to increasing your personal net worth in the Philippines may differ from another person; therefore, today, we will be going over 7 powerful tactics and strategies that you can use when looking to increase your net worth in the Philippines.

Table of Contents

How To Increase Net Worth Philippines

1. Create A Net Worth Plan & Timescale

Throughout history, some remarkable entrepreneurs have managed to come from the bottom to reach the top. Patience, discipline, and sacrifice were common with these entrepreneurs. But one thing they also shared in common was a carefully designed plan of action.

If an entrepreneur wishes to grow a business, or if an investor wishes to increase their net worth, they must have a plan of action to follow. This includes some of the basic information such as…

Is My Routine Suitable For Net Worth Growth?
What Am I Afraid Of And What Is Holding Me Back?

What Are The Opportunities And What Are The Risks?
What Financial Assets And Liabilities Do I Currently Possess?
What Is My Financial Target?

What Needs To Be Done Increase My Net Worth This Year?
What Skills And Knowledge Do I Need To Possess To Achieve My Financial Goal?
What Tools, Skills, Or Leverage Can I Use To Increase My Net Worth?

Why Am I Not Financially Successful?

When you are trying to increase your net worth in the Philippines, one question you may wish to consider is… how can I achieve my 10-year goal in one year? Of course, this is extremely challenging most of the time, and some would even say impossible. However, we often underestimate what we can do in such a short period, especially if we have a tight deadline.

As mentioned, setting yourself such a target like this isn’t easy. Most who try this will not achieve the goal within 10 years, and that’s the point. It’s not about achieving the goal (if you do, that’s a bonus!), but instead, it’s the person you become and the skills/knowledge you learn along the way. A goal like this encourages the expansion of the comfort zone, which is often where the magic happens.

So to summarise, the first strategy for increasing your net worth in the Philippines is to create a solid financial plan of how you will get from point A to point B. Next, create your time scale. This is a creative process where you can look at the financial opportunities and determine the best process for success.

2. Learn The Art Of Saving

In today’s modern world, it’s common knowledge that saving will not make you rich due to inflation and other economic factors; however, it is still essential in wealth management. This is why the second strategy on how to increase your net worth in the Philippines includes learning the art of saving.

Recently we spoke about how to start an emergency fund in the Philippines and gave some additional tips and tricks for those who wish to save. But why is this such an important article, and what does this have to do with building net worth as a Filipino?

As someone who has experienced the power of unexpected events, I can tell you that an unexpected event can completely wipe out your net worth overnight if you do not have appropriate safety nets. Naturally, those with a larger net worth may not be affected so much by an unexpected event. Still, if you are beginning to build your net worth, an emergency can be detrimental if there is no safety net.

But excluding emergency funds, why is learning the art of saving important to increase your net worth in the Philippines? The other side of the coin is that you need to save to invest (essential for net worth growth).

There are times throughout history when the market explodes. Those who have studied the market will know that key indicators suggest an explosion is coming. One example is the recent conflict between Russia and Ukraine. As a result, commodity prices (oil, gold, wheat, etc.) rapidly increased during the early days.

During the early conflict between Russia and Ukraine, there were financial indicators that the markets would change. Talks of sanctions, banning oil, and so on were well-spoken about before the markets became more volatile. Having a lump sum of savings during this time would have been a perfect opportunity to capitalize on the changing markets.

If you know any full-time investors, a great idea is to ask them what was their best investment. The answer will most of the time be an investment that they made at the right time at the right price. Likely they were able to do this as they had available liquidity.

3. Review Your Risk Level And Invest

There are several different types of investments in today’s financial world, including several different types of risk levels. Moreover, as technology advances, there are even more investment options, including cryptocurrency and even NFTs.

So what investment is best for you, and how do you begin to invest so that you can increase your net worth?

The best investment will depend on several factors, which often include the investor’s risk level, experience, age, and so on. For example, an experienced cryptocurrency enthusiast in his mid-20s may see more financial gains from a higher-risk investment in a volatile market such as cryptocurrency than a 70-year-old novice who would be better suited to invest in a low-risk investment.

Before you begin investing, however, it’s important to take the time to learn and research about different fields across different industries. In addition, with investments, it’s often wise to play into your strengths. The world’s best investor, famously Warren Buffett, does not invest in other types of investments; instead, he plays to his strengths.

4. Grow A Business In The Philippines

One of the most common questions asked is, is it possible to grow your net worth as a business in the Philippines? Absolutely. Some of the wealthiest Filipinos have grown their net worth in the Philippines from first creating a business. Recently we explored a full list of starter business ideas for the Philippines, which I have linked to above for your reference.

There are several different stages of business, and in the early days, you may find that your net worth decreases when you start a new business. This is to be expected. But the goal of any business is innovation, success, and financial gain. In time, a successful business can increase the owner’s net worth. This is often done through leverage and systems.

In previous articles, I have spoken about the power of leverage in the Philippines and how systems can be built to grow a business and financial success. However, I will summarise a few points below.

Once your business has expanded, systems can be used to save time and streamline processes. Not only is this a great way to increase your personal net worth in the Philippines, but it is also a great way to save expenses as a business.

For example, I write this blog post as stage 1 of the system. Stage 2 is the editing from the editing team. Stage 3 is sharing the content on the website on social media. Finally, stage 4 recycles the content into different forms such as videos, podcasts, and sometimes mini eBooks.

Systems can be automatic such as using computing software; systems can be people such as your team, or systems can be something you do personally. In other words, systems help your business grow. As your business grows, you’ll find more opportunities for financial gain, which can increase your net worth in the Philippines.

5. Pay Off Bad Debt

Several books have spoken about debt management and the difference between good debt and bad debt. For those who haven’t come across the concept before, good debt is taken out to purchase something that can be an asset or valuable in the future. Conversely, bad debt is taken out to purchase liabilities or items that do not bring any financial value.

Whether something is a good debt or bad debt can differ from person to person. For example, some see purchasing real estate using a home loan as bad debt. This is because expenses are high, and many feel the real estate market bubble will soon burst in the Philippines. However, others disagree and believe borrowing money to purchase property is a type of good debt.

Whatever side of the fence you stand on, what’s important to note is that bad debt can often be crippling to your net worth. Therefore, analyzing your current incoming and outgoing payments is often a fantastic idea for an entrepreneur looking to increase net worth in the Philippines. During your investigation, you may find that several expenses need to be removed.

This could be an expense such as a credit card bill for a monthly subscription to Netflix. These may not seem like a lot of money, but in the early days saving a few pesos here and there can be very valuable in the long run.

If you are struggling financially (I have been there myself, I know it sucks!), it’s recommended to contact a debt professional or financial advisor who will give you a clearer idea of how you can remove your debt in a more financially positive way.

6. Learn To Live Below Your Means

When we looked at growing personal net worth in the Philippines earlier, we discovered that starting a business or investing are fantastic options. But these are also expensive options and can be very challenging if you are an employee. Therefore some sacrifices may need to be made.

Living below your means essentially means that your expenses are much less than your income. a friend of mine who was slightly overweight and in a financially negative situation decided to start fasting! He got in great shape, felt so much better, and saved thousands just by changing his eating habits.

I’m not suggesting that you give up eating to be financially successful. Ha-Ha! But what is important is that you can look at all areas of your life to see what changes can be made to improve your overall net worth.

This may not need to be a lifestyle change but a small challenge. For example, you may say that you will give up your daily coffee for 90 days. The extra cash you will save by doing a challenge can increase your net worth. You can then use that extra money to invest or start a side business like a YouTube channel or blog.

7. Take Calculated Risks

One of the last but most important stages if you are looking to increase your own personal net worth in the Philippines is to take calculated risks through your journey. Early on, we spoke about different types of risks for different investors. So at this stage, you will need to decide if your decision will bring you the returns you are anticipating.

For example, you may find a savings account will generate an interest rate of 2.5% annually. However, this may not be enough for you to reach your financial target of 1 million pesos in 5 years. Therefore, taking calculated risks and other types of investments may be more suitable to reach your goal.

There are several phrases thrown around in the investment world in the Philippines. One of those phrases is that you should only invest money you can afford to lose. The reason for this saying is that it is possible to lose all of your capital, especially in a highly volatile market. This is why careful risk management and strategic thinking are required.

More Making Money Guides

10 Steps How To Become Rich In The Philippines

Where To Sell Used Books In The Philippines