Taoke (Business)

Best Financial Advice on What to Do With Your Ang Paos

Ang pao. Courtesy of Pixabay.

恭喜!  恭喜!  Whenever you hear these 2 words, what is the next thing that comes to your mind?

Ang pao! Isn’t it?

I was teaching my 4 and a half year old son the song… 恭喜恭喜恭喜你呀

恭喜恭喜恭喜你…  and suddenly he said… “Where’s my ang pao?”

I was shocked that he was able to connect 恭喜 to ang pao.

Funny, but this is our Chinoy tradition, right?

I am sure you have a big smile on your face and a grateful heart whenever you receive ang pao.

Money inside the ang pao goes a long way for us Chinoys.

We sometimes leave it in our wallets and whenever we need extra cash, we will use it for our needs.

Sometimes we save it and accumulate it and buy the things we want.

Or sometimes, if the amount is big enough, we will save it and put it in the bank.

Which one are you?

If you’re the type of person who sees ang pao as “minsan lang ito” and want to save and maximize it, make it work for you by growing the money so that you can enjoy more rewards in the future.

This tip is very ideal for parents with young kids because for sure, the ang pao that the kids receive usually won’t be needed for a long time.  This could be a great start for you in creating a legacy of love for your kids.  Your kids will surely thank you for it once they reached adulthood and see that their money are in the millions already.

If you’re consistently investing Php 5,000 every year for the next 20 years, the money at 8% growth can become Php 247,114.  Double it and it becomes Php 494,229. To target Php 1 million in 20 years, the goal is to save Php 20,000 every year.

Is this too good to be true? If you think so, you probably have invested in pooled funds like UITFs and experienced negative results.

The growth in UITF funds aren’t guaranteed and yes, it fluctuates all the time.  That’s why it’s best to do regular investing so that you buy at different prices.  No one knows if the market will go up or down. However, consistent investing will help you average fund prices.

Another tip: the best time to invest is while the market is down.  The prices right now are quite low because of the pandemic.  If you have extra cash, go ahead and invest that ang pao money.

There are lots of UITF funds to choose from. You may check this website to see a list of all UITFs available and check what are the top-performing funds.


About the author

Sheila Ong is a legacy architect.  She helps Chinoy families plan and design their financial homes by not only creating a strong financial foundation but also peace of mind, allowing families to do what matters most, which is to have more time to spend with each other. It’s her passion to empower each Chinoy family to create a legacy of love from one generation to the next through proper wealth management. As a naturally shy person, she evolved into becoming a public speaker driven by her advocacy. She has transformed many lives, including the lives of her team of financial advisors and the lives of about 400 families who are now financially secure.  Sheila also values family time as she is a full-time mom to her son.

If you want to know more about how to maximize your hard-earned money, you may send her an email at sheila@legacyoflove.info. For more information, you may also check out her website, https://legacyoflove.info/ and Facebook page, https://www.facebook.com/legacyoflovewithsheila/.

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