I cancelled my membership with Fitness First gym

A month ago, I cancelled my membership with Fitness First gym as I have realized that most of the essential exercises that I have been doing were all possible at home and at the park. Running around the park, doing jumping rope, swimming in the beach and performing aerobic exercises at home can be done without actually splashing a few hundred bucks a month for gym membership, transportation going to the gym and those post workout meals. In monetary value, I am saving about 5,000 pesos per month or 60,000 pesos per year. But do you want to know the long term impact of this initiative? I am sure the answer is a big yes.

I can do 2 things with my 5,000 pesos. I can either invest it in mutual funds or I can invest it in the Philippine stock market.

Let us say, conservatively, if I invest it in mutual funds the average annual growth will be 12%.  The numbers below demonstrates how my money will grow over a period of 10,20 or 30 years.

After 10 years = 1 million

After 20 years = 4.3 million

After 30 years = 14.4 million

I don’t know about you, but with 4.3 million pesos and with the kind of lifestyle that myself and my wife have, I can secure my ideal retirement fund after 20 years as a result of this initiative only. Of course, I can continue saving until the 30^th year if I want more.

On the other hand, should I decide to do stock market investing for the next 10, 20 or 30 years and the average growth rate per year as per the Philippine Stock Exchange is at 15%, the numbers will be as follows:

After 10 years = 2 million

After 20 years = 8.4 million

After 30 years = 28.4 million 

After doing a simulation of the above numbers in my spreadsheet, it felt better knowing that my decision made a lot of financial sense to me. But not only that, the best thing about it is that I can spend more time with my wife because I can get to do my daily exercise with her. That for me is the greatest investment.

To your financial success,

Anselm Reyes

Do you want to increase your wealth? Join the Truly Rich Club by clicking the below link.

http://bosanchezmembers.com/amember/go.php?r=14027