“Where would it be a good idea for me to invest?”
“Which investment will provide me with the most return?”
“Can I stand to risk my money in this item?”
These are portions of questions that bothered me when I was quite starting out way back in the year 2016.
Until then, I found freedom by taking these helpful tips, which I hope to be a part of your journey to your financial freedom.
1. Have a decisive, realistic goal.
Having positive and realistic objectives will help you in deciding where you should invest.
Did you really start investing because of the reality that you want to become rich? If yes, then it’s definitely a weak reason. You should have a specific objective as a primary concern before you make investments.
Just ask yourself, where would you like to spend the money in the future? Is it purchasing a car? For your child’s educational cost? For traveling around the world over when you retire?
2. Do a Research.
You have to research and ask if there’s a part that you don’t understand. Obtain some of that information concerning all the investment instruments that seem accessible and ideal to you. You should better understand the investment cost and charges. Just be patient, this might take some time.
If there are seminars, webinars, workshops regarding handling finance or investment, just sign up immediately and attend to that. Some seminars have registration fees, but please mind that you also have to invest your knowledge for your financial literacy.
“If you think education is expensive, try ignorance.” - Robert Orben
3. Make a workable, regular investment plan.
It’s important to invest regularly when the time you are making an investment.
Cost averaging is a way of investing in small amounts in a regular routine. This way will indeed reduce your risk in opposition to market developments.
4. Monitor regularly.
Monitor in a usual way how your investments are getting along, at least do it once quarterly.
Personally, I do it once a week. However, I advise you that don’t do it too much like each day since it will be discouraging for you.
You need to confirm and guarantee that you’re still on your path to attain your goals. So you need to see how your investments are going.
When you see that your investment you have right now isn’t gaining obviously, then you have to make a decision on that if it might be smart to hold it out for a while or if it is ideal for moving your money to another investment.
5. Diversify whenever possible.
You cannot put all of your money on the stock market and real estate, a similar way you cannot just put your investments in time deposits. This means that you should not undergo too much risk.
Don’t put all your eggs in one basket.” – Warren Buffett
It is essential to understand and remember that you should have a balanced portfolio.
People who successfully handled their financial encountered problems when they started investing.
There are various investment instruments that you certainly can settle on a decision.
I recommend that you simply do whatever feels objectively right. There are no strict rules here, actually. Do the calculations and regulate your portfolio accordingly.
When you get yourself started in investing, you will see that your financial knowledge will improve. Soon, you will be smarter in your investment choices and see better open doors for your money.
Maybe you’ll ask, what if there’s a real estate bubble, economy crisis, lousy performance in government financial programs? Or whatever you want to mention more. My response is we shouldn’t give up. There are always ups and downs in the stock market. Patience is the key to success in investing as volatility in the stock market can stir costly emotions—fear, greed, or pride. We should ready to face and handle those problems.
There’s no reason will put yourself to say excuses if you have a chance to have the money. As I said earlier, there’s always an instrument available out there that’s good to put your investments into.
I don’t want to spend my money on such unimportant and unnecessary things. I didn’t always use my credit card. I just rarely used it except for unexpected emergencies and to build and maintain my credit score.
Of course, I always contributed to my mutual funds, SSS, PAG-IBIG, PhilHealth, and life insurance. I even have a monthly contribution to my pre-need life insurance. It was supposed to be for my father, I did it for him, but sadly after he passed away last year, I decided to continue and transfer it to my name since the plan is transferable.
Recently, I invested UITF or Unit Investment Trust Fund, and the bank that offers this kind of investment approved it on the 14th of April, 2020.
I did all of these not just to provide my protection and keeping my future wife and future kids safe and secured as I leave nothing to chance, but because this is my way to show them how I love them.
I have a plan to expand more and diverse my investments. In a way that I am aware and will not focus on one investment if that fails.
Are you concerned about your kids’ future and your future generations? Do you want to still rely on your job when your age turns 50 or 60 or so on? If not, then begin to invest right now. The worst time to invest is tomorrow.
Are you excited?
I hope this article will provide you some insights, and someday those words above will be valuable to your personal investments.
Enjoy! 🙂