Mommies Growing Money

Not too long ago, mothers had a simple to-do-list: prepare baon, check. Do the laundry, check. Clean rooms, check. Cook meals, check. The tasks were definitely not easy, but they weren’t complicated either. However, these days, the intuitively giving and nurturing nature of mothers have led them to another responsibility; another task to be added to their checklist: grow money.

The duties of a Filipino mother are no longer confined within the walls of a kitchen or a nursery. Filipino moms are stepping out of the backstage and into the limelight, making decisions when it comes to addressing their families’ financial needs, playing treasurer and bank manager in their household, pulling out all resources possible, just to make sure that the future is bright and comfortable for her loved ones. It may be said that this desire to provide more than domestic needs for the family led to the rise in working moms, because a family needs to earn more. 

However, as the years have proven, earning is no longer enough for the Filipino family. When you’re just working to earn, more often than not, money comes short or, if you’re lucky, passes through your hands too quickly. Thus, Filipino moms are now actively venturing into the business of not just earning money, but growing it as well. Here are some ways to do just that:

 

1. Time Deposit and Special Deposit Accounts

 Not so different from your ordinary Savings Account, Time Deposit and Special Deposit Accounts are products that banks offer clients who want to make their money earn a little more. The money a client deposits (and leaves untouched unless otherwise requested) earns through the slightly higher interest rate unique to these kinds of accounts. Your money “grows” by just sitting in the bank and earns the indicated interest rate at the end of the tenure, the amount of time that the money is held in the bank. 

Nani Gonzales-Torres, a businesswoman and fulltime mom to Marga (7), Roycie (4) and Stella (1), states that this is one of the conservative (a.k.a. low-risk) investments she has made for her family. “Our SDAs and Time Deposits may not give us as high returns as other products but at least it’s earning even just a little. It is important to us that they be available to us when we need them,” she stresses. It would be best to consult your bank with regards to the amount and package they have setup for these products.

 

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2. Franchising

 Filipino moms can also look into businesses to grow their money. A rising trend is franchising wherein known brands allow interested parties to implement or use their business name, products and system for a certain fee. According to businessdictionary.com, people who turn to franchises do so for good reason: there is immediate name recognition of the brand, products are tried and tested, techniques and strategies in running and promoting the business are included, and training and help in product development are provided. The investment needed for a franchise depends on the brand, size of the store and business scale you are getting. At present, franchises in the Philippines are more popular for food brands.  

Celine Cornejo, a businesswoman, financial adviser and mom to Calix (1 year and 4 months), and her family chose to avail of a restaurant franchise. At present, they have 2 branches of a popular chicken and pork restaurant at about P7-10 M each, depending on the store size. “Operations is usually cash flow positive from day one. ROI (return of investment) can vary from store to store, between 3-8 years,” she stresses. 

For Grace Sali, a registered nurse, businesswoman and mom to Wayde (6), she and her husband decided to invest in a food kiosk that sells bread products. “We got 2 bakeshop kiosks ranging from P500K-P800K each, depending on the size of the store. The ROI or payback is around 10-12 months and in general, we enjoy a gross profit margin of 40-50%,” she says. 

For Grace, this is an easy investment to make, especially for a couple who has other jobs to attend to. “We decided to invest in this kind of business because for us, there’s a huge market for bread products and it’s easier to manage. We just order the products from the franchisor and it’s ready to sell. It doesn’t need much preparation,” she says. “We think it’s a good investment because it gives our family additional income and if managed properly, it can be good for the long term.”

 

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3. Putting Up Your Own Business

 Filipino moms are also well-known for their creativity and flair for originality. It is no wonder then that moms like Matz Ejercito and Coco Cruz have taken the call of becoming mommy entrepreneurs. Matz, mom to Marcus (16), Jill (13) and Jorge (11), is also a proud mom to 4 of her own businesses: a supplier and installer of windows, doors and construction supplies, a laundry shop/full laundromat, a water station and her own line of shoes.  

“I started the construction business to provide for my family. It’s very easy to earn in this kind of business because of the billing system that we have with our clients. A small project can be done in 3 days, residential projects in 2 weeks,” she shares. “My laundry and water station does not have income as high as my construction business of course, but after the ROI, I use the income from these stations as saving for the kids already. Another plus side would be that my kids will be managing the store this summer as their summer job so they would know how the business works and have a better appreciation for hard earned money,” Matz says. “As for the shoe business, it’s really just my love for shoes that started it. But so far it has been profitable, I have 2 online shops managing it and displays in botiques and bazaars as well.”

Coco Cruz, a social entrepreneur and mom to Sining (5) and Diwa (2), decided to maximize and take advantage of their family manufacturing business by creating a brand of laptop bags of Christmas bazaars. “We didn't have a shop or an office (we worked from home since the factory is a few blocks away from where we lived) so investment was very minimal--we just had to raise P25,000 to take care of the down payment of the rental of bazaar spaces. Then had to concentrate heavily on R&D (time and effort) - researching on the latest trends, pricing structures and marketing strategies,” she shares. “We came out with our own designs, it was a good exercise for creativity too! We were lucky because Christmas time is always profitable and bazaars are always a big hit, we were able to earn (net) at least five times of what we invested. Although we didn't put in too much money, all the hard work and time paid off pretty well in the end!”

 

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4. Real Estate

 With the mushrooming of condominiums and residential areas everywhere, it was only a matter of time when moms saw this as a profitable investment. For Coco, having two kids at present was a good time for them to already invest in property. 

“It was quite tricky to invest in something this big. It has to be well planned and you really have to know the ins and outs of where you'll be putting a lot of your money in. So we looked around the metro, checked the different locations, studied our financial capability and decided to purchase a small condo unit at Fort,” she shares. 

“It had good payment options and in a short period of time, we'll be able to have it rented out. Investments of this kind may demand anywhere from P2M to P12M depending on the type, size, location and quality of interiors you'll put in. ROI is also long term, it will take 5-12 years before it becomes profitable,” she stresses. “However, it's something you don't need to work on 8 hours a day. It usually just requires good marketing and maintenance of good relationships with your renters. In the end, it all works out well too!”

 

5. Stocks, Insurance, Equities and Bonds

 It may all sound too complicated, but surprisingly, investments of this kind are already gaining more and more popularity for families, due to its profitable returns. Nani and Celine are no strangers to these kinds of money growing opportunities for they too, have also invested in them for their families’ futures. Nani shares that she has ventured into stocks, Retail Treasury Bonds and Corporate and Government Bonds.  

“Initial money investment for stocks varies. The return of your investment depends on the stock and the stock market. If you hold on to your investment long enough, you get dividends. If not, money earns through trading,” she shares. “Retail Treasury Bonds are issued by the government. There have been offers of 15-year and 20-year bonds, but we chose a 5 year RTB and & 7 year RTB instead. Your money earns the indicated interest rate. You get your interest earnings every quarter,” she stresses.  

“As for Corporate Bonds (which are issued by various corporations, like loaning money to big corporations) and Government bonds (which are issued by the government, like loaning money to the government), you get earnings after 6 months,” Nani states. “We receive coupon payments from our earnings twice a year. But the market for these bonds is volatile. You can hold on to it or go into trading to maximize your profits,” she shares. 

Nani says that investing really depends on your risk appetite and tolerance but for her family, she doesn’t put all her eggs in one basket. She tries to diversify their portfolio by dividing the funds between conservative, moderate and aggressive instruments. “I try to look for options that have a lock in period of 3-5years and 5-10years, just for the purpose of diversification. The waiting game may be longer, but the returns are definitely better than the low-risk products. Finally, we also try to put some funds on higher-risk investments. The earnings from this type of investment is greater but the risk is also such. Before playing, I make sure I'm ready to win but also ready to lose.”  

Celine has also availed of Insurance and Equities/Bonds-linked Funds from a well-known investment firm. “Technically, there’s no minimum and maximum to start saving up and building wealth. You can start at P5,000 a month and enjoy substantial returns,” she shares. “ROI varies from policy to policy.  Some programs start bringing in positive returns as early as a couple of months. In this type of opportunity, profits come from managed, diversified investment funds and guaranteed returns in the form of pension,” she states.  

“We decided to invest on the above programs because we believe in the concept and importance and are comfortable with the investment strategy. My husband and I want to be semi-retired early in life-- just investing in more opportunities, work from home and enjoy our family. Our investment goals are for the rainy days, for supporting our growing family's current and future needs and, more importantly, for building wealth towards financial freedom. We eventually don't want to work for money; we want our money to work for us.”

 

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6. Nation Building

 And then, there is another type of investment that can profit not only a family, but an entire nation in the long run. Coco, the mommy social entrepreneur, shares how her family is not a big fan of just keeping money. They believe that it should be shared or should be made to grow, and she suggests that moms also invest their money in our own country.  

“As a family, we have also decided on investing in our country and in our children's future. We invest our time, effort and money on helping build communities to end poverty. We have to take our part and we know that ROI in this kind of investment may not be in the same form that we gave it out but it gives you back something more, something you cannot even measure. The peace of mind and the fulfillment you get from caring, helping and sharing with others amount to so much more than any profit a business can give you,” she shares.  

While it is important for children to grow up comfortable, there are also moms who believe that children should grow up socially sensitive. Making the right kind of investment for others help children realize that the values they learn are more important than the monetary value they get back.  

 

Wise Mommy Words on Investments

 There are many opportunities available for moms to venture in these days. The future does seem brighter, if the right investments are made. But before jumping in this sea, it would be best to take a step back to do the following:

1. Know yourself. It would be best to look not only at your resources, but also at what you can give before getting involved with an investment. “Know how much you’re willing to risk. There are a lot of investment opportunities and products for different risk tolerances,” shares Nani Gonzales-Torres. Just manage what you can handle. Try not to get blinded by the amount in the end, but instead, open your eyes to how you can sustain an investment on a daily basis.

2. Research. “Read, ask around, look into historical data. You have to learn about the products or instruments you’re investing in,” says Nani Torres. Just because the investment is a good fit for someone else, doesn’t mean that it would produce the same results for your situation. Always know the nitty-gritty of what you’re getting into.

3. Be smart. Sometimes, those behind money-making opportunities take advantage of people with the best intentions for their families. If it’s too good to be true, it probably is.

4. Start now. It is important to try to maximize every opportunity and exhaust every little investment possible for the future of our families. And there is no better time than today. “Don't wait for the big one; start small, start somewhere. Maximize bite-sized opportunities, grow it, and someday, you'll find yourself satisfied and fulfilled. Investing is just like having hors d'oeuvre, you sometimes get a good one, sometimes a bad one. At the end of the day, have enough good ones, and your appetite's satiated,” says Celine.

At a time when the future seems unsure for the children, moms need all the help they can get. Investment opportunities are now readily available to make sure that moms can provide for their families today, and for the future. And with the right investments, moms can definitely tick off the final task on their checklist: future secured.

 

Photo by Tax Credits via flickr creative commons