What To Do If you Hit your First Million Peso? (2024)

What To Do If you Hit your First Million Peso? (1)

Have you received your 13th-month pay? How big are we talking about here? 😉
The first thing that comes to mind is what to do with it. Would you buy something for yourself? Spend it for the holidays? Or save and invest the money for something more valuable. The same thing goes with your first million pesos.

The first million is always the hardest. Hitting your first million pesos is definitely a great milestone for many Filipinos. That seven zeroes on your bank account feels good and is something to be proud of; not everyone has the luxury to achieve that. Now that you’ve reached your goal, what’s next? Would you save up to two million more? Invest in building a business? Will you buy a new car? Having a million pesos in your bank account can be overwhelming if you don’t know what to do with it. It might seem like a huge amount of cash, but if you break it down, bit by bit, you will realize how important it is to spend and save your first million pesos wisely. Isn’t that why you’re here? Whether you’ve hit the milestone of achieving seven zeros, or just getting started on the journey, this article will guide you through what to do and not to do when you hit your first million peso.

Disclaimer: This article serves to provide general and basic information about how to start your first million peso in the Philippines and does not constitute financial advice. For personalized financial guidance regarding your investment, it is recommended to consult with a certified financial professional who can tailor their advice to your specific needs and circ*mstances.

What Defines a Millionaire?

Have you ever wondered how someone can be defined as a ‘millionaire’? Being a millionaire means being worth or having a net worth of exactly or over the million peso threshold. This “worth” is defined by hard or liquid assets, cold, hard cash, digital assets; such as cryptocurrency, NFTs, bonds, stocks, company shares, and many more. So yes, you don’t have to earn P1 Million a month to be considered a millionaire.

To give you an example, if an individual owns a house & lot worth over P1 Million with full ownership (meaning no mortgage, debts, and it’s fully paid) this can be considered as assets, which makes the homeowner an automatic millionaire in terms of net worth.

So, What Do You Do With Your First Million Pesos?

Now, whether you already have those digits on your bank account sitting dormant and have absolutely no plan on your next move or you’re thinking for a while on what to do with it, here are some ideas on what to do next.

  1. Plan it Wisely

As mentioned above, a million peso might seem a huge amount, but if you think it through, you will realize how fragile and small the amount is. Planning is the first step to do before spending or saving your million pesos. Think about necessities, debts, savings, and other bills that you might want to get out of the way.

  1. Taxes

When you come into possession of your first million pesos, it’s crucial to approach its utilization with careful consideration, and of course, be mindful of tax implications to prevent tax evasion penalties. Taxes play a significant role in shaping your financial decisions, and a thoughtful approach can help you optimize your financial outcomes.

Assess the tax implications of any additional income generated from your investments or businesses. Different types of income, such as capital gains, dividends, or business income, may be subject to varying tax rates.

If you’re considering selling assets like stocks or real estate, be aware of capital gains tax. Timing your sales strategically or exploring tax-deferred options can optimize your tax position.

To better understand taxes, engage the services of tax professionals who can provide personalized advice based on your financial situation. Their expertise can help you navigate complex tax codes in the Philippines, identify opportunities for savings, and ensure compliance with tax laws.

  1. Get an Insurance

As important as it is, getting security over your finances and assets is very critical to make sure all your hard work doesn’t go to waste. Getting insurance should be a priority when you hit your first million pesos. This safeguards your assets and finances when things go to worse. Accidents, health emergencies, and other external factors that can impact your hard-earned money can instantly go down the drain if you don’t have insurance to protect it from. Worst case scenario, you might start from scratch, or even worse, go into debt.

Top Insurance Providers in the Philippines

  • PRU Life UK – PRU Life UK in the Philippines offers comprehensive insurance solutions, combining financial protection and investment opportunities to secure your future with confidence.
  • Manulife – Manulife is a leading international financial services company, dedicated to helping people achieve their dreams and aspirations. With a strong presence in the Philippines, Manulife offers a wide range of insurance and wealth management solutions, empowering individuals to plan for a secure and prosperous future.
  • Sun Life Philippines – Sun Life Philippines is a premier financial services provider committed to helping Filipinos secure their financial well-being. With a legacy of excellence, Sun Life offers a comprehensive suite of insurance and investment products, empowering individuals to live brighter lives and achieve their financial goals.
  • AXA Philippines – AXA Philippines is a leading insurance and financial services company, dedicated to providing tailored solutions for a secure and prosperous future. With a commitment to innovation and customer-centricity, AXA offers a wide range of insurance and investment products to help Filipinos protect what matters most and achieve their financial goals with confidence.
  • Insular Life – Insular Life, a trusted name in the Philippines, is a premier life insurance company committed to securing the financial future of Filipinos. With a rich heritage and unwavering dedication, Insular Life offers a range of insurance and investment solutions, empowering individuals to build a foundation of financial security and achieve their life goals
  1. Pay off debts (if you have any)

In the scenario that you have any debts such as mortgage, auto loans, or consumer debts, it’s best to pay these liabilities as soon as possible to ease up your finances. Making it a priority to pay your debts after getting an insurance is definitely a weight off your shoulders, which means, any streams of income and budgeting can be more forgiving.

  1. Keep the funds in motion

After you’ve planned your insurance and debts, the next thing to do with your money is to make sure it doesn’t lay dormant on your bank account. Keeping your funds in motion means circulating your money back to maximize returns. To do this, you can either invest your money in stocks, bonds, or even start your own business with the money you have left. This ensures that your funds are put into good use through income generation, preventing your money from going zero.

  1. Celebrate

After putting everything else aside, celebrating is as important as saving and investing your hard earned money. Celebrating your first million peso milestone encourages you to move forward to your next financial goal. This allows you to validate and recognize your achievement. Your celebration doesn’t have to cost 6 digits, it can be an intimate party with your loved ones, dining out, going on a solo or a trip with a loved one, or any type of celebration that holds your interests. Celebrating also allows you to take a step back from all the stress and hard work, preparing you to take the next step.

  1. Save the rest of your money

If you’ve planned out all your finances, it’s advisable to save the remainder of your funds to savings. This allows you flexibility to sudden bills, emergencies, or even maybe something to buy for yourself.

Things Not To Do With Your First Million Peso

Now that we’ve discussed what to do with your first million pesos, here are some not to do’s.

  1. Avoid Lifestyle Inflation

Inflating your lifestyle or living beyond your means to the extent of luxury is a big no-no. The lifestyle inflation trap is a dangerous place to be in as it only exhausts your finances to more expensive bills which won’t allow you to expand your savings, wealth, and other financial matters.

An example of lifestyle inflation is moving to a nicer home without reason, buying a new and more expensive car, or frequent dine outs.

  1. Spend on Liability

Spending money on liabilities, such as material possessions, refers to the act of using financial resources to acquire items that do not contribute directly to one’s wealth or generate income. In personal finance, a liability is typically something that depreciates in value over time or does not have the potential to appreciate. Examples of spending on liabilities may include purchasing non-essential luxury items, expensive gadgets, or goods that quickly lose value.

  1. Neglecting Emergency Savings

Neglecting emergency savings is a financial oversight that involves failing to allocate funds to a dedicated reserve for unforeseen expenses. An emergency fund serves as a crucial safety net, providing financial security in the face of unexpected events such as medical emergencies, car repairs, or sudden job loss. By disregarding the importance of building and maintaining an emergency fund, individuals expose themselves to the risk of financial strain when confronted with unexpected challenges.

How To Hit Your First Million Peso

How to hit my first million peso? I bet you’ve asked this question a lot of times and how certain individuals have reached the million peso net worth. You certainly have a plan in mind for the path of becoming a millionaire. If you’re still on the journey towards the goal of hitting your first million peso, here are some ideas that can help you curate a plan in achieving your financial goals.

  1. Invest

Of course! I bet you’ve heard this a million times already, while investing is a long-game type of strategy, investing can slowly take you to your financial goals. But, the question is, how to invest? While there are various types of investments that can provide you with opportunities for wealth growth. Typically, investments with powerful compounding interest are good investment choices. In the Philippines, you can invest in Pag-IBIG’s MP2 Savings, stocks, bonds, real estate, and many more.

The secret to investing and playing the long game is the power of compounding interest. The more time you have invested, the more return you will gather. Another tip when investing, it is paramount to stay patient and don’t be discouraged. What makes investing a powerful tool for building wealth is the consistent and diligent investments over time.

  1. Start a business

Starting your own business is one of the paths you can take in achieving that million peso dream. Starting a business is definitely not an easy road; all the stress, time, effort, and risk, yet, it can produce lasting results and returns when done correctly. The period of reaching a million peso valuation with a business can vary, depending on what type of business you’ve chosen to invest in. If you plan to take the path of entrepreneurship, and want to sell your products, you can start becoming a seller at the fastest growing next generation B2B eCommerce marketplace, Shoppable Business.

  1. Second Source of Income

If you’re participating in the “grind culture” then having a second source of income is definitely a must for you. While grind culture shouldn’t be normalized, well, for some people, it can be thrilling and enjoyable. Having a second source of income is one of the effective ways to build your wealth towards the million peso mark. This second source of income doesn’t have to be two full-time jobs, it can be a side hustle, a freelance project, or selling products on the side.

  1. Saving Money

While saving money alone can be difficult to achieve, it becomes a powerful tool when you combine it with a second source of income or investments. This strategic approach not only accelerates your savings but also opens up avenues for financial growth and wealth-building. By combining the discipline of saving with the diversification of income sources, individuals can create a robust financial strategy that not only secures their present but also lays the foundation for a prosperous future.


Having a million peso is definitely a great milestone to achieve and something to celebrate about. But once you’ve hit your first million peso, you might get stuck, not knowing what to do next. Or, if you’re a go-getter, you will want more, and achieve to become a multimillionaire, that’s just how the world and human nature works.

In conclusion, it is important to take advantage of your first million pesos to good use, such as circulating the money, getting insurance, clearing off debts, and savings in order to keep your funds reaching zero, or worse, turning to debts.

What To Do If you Hit your First Million Peso? (2024)
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