Investing is the key to building
wealth. It allows our money grow in a period of time. It’s easy to decide yet
we need things to consider before diving into. I’m sharing you things I did
before I began my investment.
1. Do
Diligence
The
first and foremost thing I did was,
I learned the basic concept in investing.
I invests in my knowledge as Ben Franklin said, "Investing
in yourself always pays the best interest.“ I started reading financial
books like Rich Dad Poor Dad of Mr. Kiyosaki.
I followed financial related blogs and
downloaded free financial e-books. I watched also You
Tube videos like complete episodes of Pesos And Sense. I attended Financial
webinars. And mostly, I paid my lunch, I subscribed to Truly Rich Club of Bo Sanchez and
learned my very basic understanding on stock market investment. I
initiated my
willingness to learn. I want to change my Financial status and the only way is
to educate myself financially.
2.
Settled Debts (Bad)
Before
I
invests, I
reminded myself to settled
my
debts. Honestly, during first half of my contract I used
to borrowed money from my colleagues. I’m having hard time on managing my
finances since I have my salary deductions for my residence permit. I took the
responsibility on paying my debts, and gladly I’m freed from it and turned
myself into a lender. I did cut my
expenses and created a budget plan. I set
aside first fund for my tithes, savings and then lastly
for my debts. I did it
slowly but surely . Discipline and commitment were the keys.
3.
Build Emergency Funds
Aside
from paying-myself-first,
I
set
aside fund for emergencies. Emergency fund covering my expenses for 3-6 months.
It’s my
fall back fund to avoid from getting into debt. I
am oriented that my investment at first don't guarantee yet
an instant return. In life uncertainty, I know my emergency fund will be my
safe haven!
4.
Get
my Insurance
Emergency
Fund is different from Insurance. There are different types of it depending
on our needs.
Insurance can provide protection from our
big financial
losses like medical emergencies, accidents, sudden death, paying of estate tax
. It covers our
future
expenses.
As of my now, I have my term insurance, I’m planning to get my life insurance
when I have my vacation in Pinas. You must Insure yourself too. Seek Financial
advice and choose your policy according to your needs.
5.
Build an Investment Fund
When
I began saving, I started setting aside fund for my investment. Twenty
(20)
percent of our income is recommended to keep for
investment fund but it may vary
depending on your preference. We should learn how to invest and let our money work for us.
As I stated above the guidelines before Investing, you now have an idea on what to do first. A little introduction on ways to invest your money. One of them is through Stock Market. A place where we can buy and sell the shares of big companies like SM, Jollibee, PLDT etc. In the Philippines we have Philippines Stock Exchange Inc. located in Pasig City. Though investing in the stocks is risky but its potential returns is so rewarding. It requires enough knowledge and guidance to begin with. I recommend this book for newbies "My Maid Invest in the stock market.. and why you should too. This is a brief explanation on how will you able to understand stock market in a simple way. Download your copy here.
Disclaimer:
You need to talk to your Financial Consultant
first for assessment before you jump into any investment vehicle.
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