I try to as always incorporate new things that can spice up this financial blog such as including webinars of past posts through my Youtube channel. If you want to subscribe click here) and creating posts based on Filipino financial terms such as paluwagan and 5/6.In addition to the above I decided to create a series posts and as a premier I will be posting the Top 10 Most Important Lessons to Learn in Personal Finance.
#5 Invest Early
If I haven't stumbled upon the blogs of PinasforGOOD, The Wise Living and Frugal Honey, I will never have the courage and the knowledge to take action towards my finances. I would have never known the beauty of making a budget, of taking notes of your daily expenditures and of valuing everything that you own.
After a year of blogging I learned another great lesson that I love to share to you guys, it is to Invest Early.
Why Investing as Early as Now is the Answer?!
As I mentioned in the post on How to Worry-Free Invest in the Philippines, the word "Investment" has become more of a foreign word for the common Pinoy.
Financial Literacy wasn't taught in school and more so in the household. People tend to value money once they start earning while some never learned to value until the day they die.
As morbid as it sounds, take charge of your money now that you are still alive and active. The younger you are the more you need to start paying yourself first through saving and keeping track of your net-worth.
Invest Now
Our money will never grow the way we wanted it to grow if we don't plant it on the best and well-researched financial trees (vehicles). INVESTING activates compound interest, two words that will as always be your way to financial freedom.
Compound Interest according to online dictionary is the interest added to the principal of a deposit or loan so that the added interest also earns interest from then on.
Think of compound interest as an interest over the initial interest. The higher the period that the compounding takes place, the higher the interest will be. This means that the earlier you invest, the bigger your money will be in the future.
Time is your best friend
The longer your money stays in an investment vehicle that let your earn a competitive interest rate, the more likely you'll be a millionaire at an early age.
Related Links that can help you start investing:
Investment Vehicles you can try:
For beginners I highly suggest investing in Managed Funds first before trying on Stock Market especially if you don't have any Emergency Fund or Savings at all.
A manage fund that I invested earlier this year was FAMI-SALEF and I created a step by step guide on how to open one for 5,000pesos only HERE. More links about FAMI-SALEF and my experience with it as a first-timer are the following:
If you wanted a reasonable option then you can open a UITF account on the bank near you such as BPI, BDO, Unionbank etc. Link about UITF is available here
As per say any investment is a risk, the best way for you to eliminate the risk is to first set an emergency fund (worth 3-6 times your monthly expenses) and to fulfill an emergency fund you basically need to willingly cut any money-wasters in your life and focus on your end goal.
Hope this post helps you.
MORE POSTS TO READ:
MORE POSTS TO READ:
Be better in your finances. Save Now, Invest Now and walk your way to success. Sign up in my Email List and receive templates to get you started in your Financial Wealth. Follow me on Facebook and Twitter for better updates. Godbless.
Post Comment
Post a Comment