I just got my first paycheck and I have around 800,000 pesos. My mom tells me to save it, but I'm not sure if I should put it in a regular savings account, invest it in something, or what. What's the smartest option for someone who's just starting out?
I opened a savings account, but don't stop there - at the same time, start setting aside a small portion (say, 10% of each future paycheck) in an accessible investment app like an index fund, even if it's just a little; that way you learn how the market works without risking losing everything, and in a few years that grows on its own while your main account stays untouched for whatever you need.
The first thing you should do is put it in a proper savings account, not under the mattress or anything like that - at least you'll earn some interest and keep it safe. With 800,000 pesos and this being your first paycheck, investing in something complicated right now is risky; better to first understand how having money in the bank works, what taxes apply in your country, and how much you need for emergencies. Once you've been saving for a couple of months and have a better grip on your cash flow, then you can look into options like investment funds or whatever your bank offers, but for now security and liquidity are your best bet.
Before you decide where that money goes, think about whether you actually need it in the next few months for something specific - because that changes everything. If you don't have an emergency coming up or any debts, a savings account with good interest rates is the logical starting point, but it also depends on what your bank offers or whether there are investment funds available where you work. The important thing is that your first paycheck doesn't get eaten up by small expenses while you're figuring it out.
With 800 thousand pesos you already have a decent cushion, so you don't need to rush into putting it into anything risky tomorrow. Open a regular savings account in the meantime, and once it's been a few months and you understand better how stable your income is, then you can decide if you want to try something a bit more aggressive.
The most common trap is thinking you need to choose *right now* between saving and investing when really the smart move is to do both: put most of it in a decent savings account (one that actually gives you interest, not a bank that barely pays anything) and as soon as you get your second paycheck, set aside a small amount to experiment with low-risk investments while you see how your money performs and get a better understanding of how things work.
Log into answer.
