Caring about our future (part 1)

Before we get into how to build wealth, we must understand why we need to become financially savvy.

When we use words like wealth, money, millionaire, rich, etc. we usually think about a fancy car, a beautiful big house, all the gadgets we can buy and so forth...

In reality, there are much more important events that need our attention right now before even starting to dream about a big house and a powerful car.

Those pressing needs are:

1. How to send our children to school and university

2. How to fund our retirement

First, let's study the college tuition fees:



1. College tuition fees

Let's take us as our example: My wife and I have a one year and a half son. It's already time for us to think about his college tuition. Since she graduated from De La Salle University Manila, I expect Nathan to go to La Salle also.

Let's assume My son wants to study business administration, each trimester costs 65,000 pesos. Per year, it's going to amount at 195,00 pesos. For his entire 4 years course, it will be roughly 800,000 pesos!

Not only that, the 800,000 pesos doesn't take into account the fee increase that the university applies each year. They increase the tuition fee at a rate of approximately 10% per year.

Nathan will go to college in 16 years. At that time, his tuition fee will amount to 3,676,000 pesos!

And this doesn't even include accommodation, transportation, meal allowance, etc..

As you can see, an immediate action is required in order to prepare for the financial weight of college fees.

In this blog, we'll teach you how to prepare for this and for the challenge of financing your own retirement.

 

Photo Credit: By Rhoda Baer (Photographer) [Public domain or Public domain], via Wikimedia Commons