Throughout 2019, the Philippines has experienced economic growth and stability, which has led to income growth for many Filipinos.
Secretary of Finance Carlos G. Dominguez mentioned that in 2016, over 5.9 million Filipinos have been lifted from poverty, which resulted in the decline of the country’s poverty prevalence from 23.3 percent in 2015 to 16.6 percent in 2018.
The secretary also added that the growth of income of Filipinos considered to be poor has outpaced the overall average. This is an indication that the government is back on track to reach its target poverty incidence by 2022.
With the Philippine economy being stable and growing, many Filipinos are investing in upgrades in their lifestyle and are now spending their hard-earned incomes on improving their living conditions.
Listed below are three things Filipinos usually spend their increased incomes on.
Real Estate Investment
President Duterte’s “Build, Build, Build” (BBB) agenda has led to the proliferation of new developments for residential and commercial purposes. There are also improvements in major roads all over the country, connecting places to ensure a safer and more convenient way to travel to various provinces and cities.
2019 has been a good year for the real estate sector in the Philippines. In relation to the BBB initiative, the development of new residential areas reflects the growing demand and interest for real estate properties in prime locations in Metro Manila and in other metropolitan areas all over the Philippines.
For most Filipinos, buying a new house or a condominium unit is a priority when they experience massive growth in their income. Others who are not ready to buy, meanwhile, will want to move to a more convenient location, such as a house for rent in Las Pinas. They would like to move to a bigger space to accommodate their growing families or to upgrade to a more metropolitan environment.
Back in the days, investing in real estate was deemed risky, but with options such as Real Estate Investment Trusts (REITs), purchasing a house, a pre-selling condominium, or even commercial spaces is less of a hassle. It also makes investing in real estate a wise choice due to its value increasing in the long run.
The booming of the real estate sector allows many developers to expand their portfolios and cater to Filipinos’ preferences, needs, and budgets.
Similarly, Filipinos can choose from a wide array of houses and lots, condominiums, and apartments to fulfill their dreams of living in bigger and more homely spaces.
Perhaps part of investing in real estate is investing in different insurance and retirement plans, especially for aging parents and OFWs who want to settle in the Philippines.
The idea behind investing in retirement plans is to have a stable cash flow for the future and in case of emergencies. Retirement plans also include life insurance for an individual and their family. These usually earn an income that can be reinvested elsewhere or be used for personal needs.
Just like investing in real estate, Filipinos invest in improving their lives in the present and for the future. With insurance and retirement plans, not only do Filipinos save for future expenses and goals, but they also ensure the health and future of the people they want to spend the rest of their lives with.
Leisure and other forms of amusement are among the things that Filipinos spend their incomes on. Hobbies and vacations are some of the investment priorities of many Filipinos.
Traveling, both locally and abroad, has been one of the popular goals of many working Filipinos throughout the years. Many travel in order to satiate their taste for various flavors, their need to visit popular places, and to experience various cultures and heritages. Traveling is also a surefire way to learn about other peoples’ history, as well as a way to self-reflect and rediscover oneself.
Buying the latest gadgets, the trendiest clothes, and the most advanced household appliances can be a way of reflecting the progress of an individual in their career. Being able to stay on trend means having the purchasing power to afford luxuries and other objects.
Filipinos also like to invest in hobbies and things that cater to amusement, such as monthly subscriptions to Netflix and Spotify.
Vacations and staycations are also short-term investments for relaxation. Short-term stays are growing in popularity as an ideal way to enjoy a laid-back atmosphere. A person who can spend on unwinding from all the stress sure has gone far in their personal objectives.
Filipinos spend on items and experiences that can easily be shared and seen. It’s no wonder then that they choose to invest in real estate, leisure activities, and even vacations.