Paano Yumaman sa Pamamagitan ng Pag-Invest



You are here because you want to learn how to make your hard-earned money grow legitimately through investing.  



You may want to invest in stock market, mutual funds, unit investment trust fund, bonds, health care, insurance, real estate, among others. 

READ here:  How to Invest in Stock Market

And your reasons why you want to invest varies: for the education of your children, to become a millionaire, to have a financially-secured retirement or beat Henry Sy as the richest Filipino.




Why Do We Need to Invest


Do you still remember the years when the jeepney fare was just 4 pesos?  Or how about enjoying your favorite McDonalds or Jollibee meal for only 25 pesos with the burger and cup of soft drinks much bigger?  How about going to the grocery store with 1,000 pesos to spend, isn’t it that you were able to buy much more items many years back than today?

Those were the days when our money can purchase more.  But we cannot go back to those days but only move forward. 


Do you still remember the years when the jeepney fare was just 4 pesos?  Or how about enjoying your favorite McDonalds or Jollibee meal for only 25 pesos with the burger and cup of soft drinks much bigger?  How about going to the grocery store with 1,000 pesos to spend, isn’t it that you were able to buy much more items many years back than today?

Those were the days when our money can purchase more.  But we cannot go back to those days but only move forward.
- See more at: http://truly-rich.blogspot.com/2013/01/about.html#sthash.fANLknvz.dpuf
Do you still remember the years when the jeepney fare was just 4 pesos?  Or how about enjoying your favorite McDonalds or Jollibee meal for only 25 pesos with the burger and cup of soft drinks much bigger?  How about going to the grocery store with 1,000 pesos to spend, isn’t it that you were able to buy much more items many years back than today?

Those were the days when our money can purchase more.  But we cannot go back to those days but only move forward.
- See more at: http://truly-rich.blogspot.com/2013/01/about.html#sthash.fANLknvz.dpuf
 




We need to invest because we need to beat inflation.  That is, the rate at which prices of services and goods go up.  Now, that makes me think how about 10-15 years from now, how much will my 1,000 pesos be only able to buy?

And we need to invest because if you only put all your money in the bank as savings, it will only be eaten up by the inflation rate. 


For example, you have 1,000,000 in a bank and with .05% interest per year since 2005, you end up with P1,020,201 net of 20% tax today.
 

If you only place your money in the bank, you actually even lost some value of your money because if every year your interest income from your savings is just 1%, the inflation rate (rate of increase in prices of commodities and services) is about 3.5%, therefore the value of your money in the bank lost 2.5%!  In Filipino language, "lugi ka pa."   


But if you invested your 1 million pesos in a mutual fund like First Metro in 2005, your money will be P4,990,400 today! And the bonus there is that, this is tax free!  Why?  Because the government urges people to invest in order to better pump up our economy.

And when you invested in the stock market in 2005 for sure with the same 1 million pesos, 6 million pesos could still a small amount of possible earnings for you today. 

 




And lastly, wee need to invest in order to achieve financial security and retire with financial stability.  Money grows over time and we need to prepare well for our future and retirement.  We don't want that after 30 or 40 years of working hard, we will retire and end up poor.  Or worse, we end up still working hard to earn for some pay when we are 60 or 65 years old when we should have been already enjoying life and all the fruits of our labor.
  
Again, WE SHOULD INVEST!  But before we start to invest, we first know why we need to invest, where to invest, what to invest and how to invest.  In short, one should first have financial education before venturing into investing.



True Stories…

If you love you basketball, I am pretty sure you know Latrell Sprewell and the great Allen Iverson.  We love rags to riches stories, however, these are some sad stories of from riches to rags. 







During the entire of their careers, Sprewell earned about $96 million and Iverson over $200 million.  But both ended up bankrupt, houses foreclosed, sold their properties, got sued for child support and still has debts.

Other popular people who got bankrupt despite earning millions are Mike Tyson, Evander Hollyfield, William Nelson, MC Hammer, Toni Braxton and Anna Nicole Smith to name a few.

Why did they fail and ended up bankrupt despite earning millions?  Because they were not financially literate.  They spent their money recklessly thinking that it will not run out,  How about Mike Tyson buying a tiger?



And I am pretty sure that you have friends or relatives or know of people who once earned big amounts of money but ended up with no savings, bankrupt and spent their old age in financial misery.



You certainly do not want to end up like them.  Or hand over to your children debts.  And you have a choice to the future that you want.

Remember this!



But another superstar basketball player who earned millions instead became richer.  He is Shaquille O’Neal who recently graduated with a doctorate degree.

Photo credit:  Access Showbiz


When Shaquille O’neal was drafted into the NBA, he spent the first million that he earned within 30 minutes. O’neal then received a phone call from his banker, who scolded him, and told him that he would end up joining the list of former athletes who ended up broke if the current trend continued.
O’neal decided to sharpen up his education on business and finance. He returned to college, completing his Bachelor’s degree, followed by his M.B.A, and lastly, his Ed.D. That’s right, he is now Dr. Shaquille O’neal.
As of today, Shaq is the joint owner of 155 Five Guys Burgers restaurants, 17 Auntie Annie’s Pretzels restaurants, 150 car washes, 40 24-hour fitness centers, a shopping center, a movie theater, and several Las Vegas nightclubs.

In addition to his business holdings, O’neal still earns $22 million per year (roughly $423,000 per week) from his endorsement deals with Arizona Creme soda, Icy Hot, Gold Bond, Buick, Zales, and at least a half dozen additional corporate sponsors. He is also a studio analyst for TNT.

In Shaq’s own words, “It is not about how much money you make. The question is are you educated enough to KEEP it.”
 
Financial Education is Key!

If there are people who still get scammed with bogus text messages saying you won 50 million pesos in electronic raffle; or an email telling you that you can get 10 million pesos if you put submit to them your bank information; or get victimized by pyramiding scams that promise to double your money in 2 months; it is because the victims are not financially educated.




And as long as there people who are not financially educated, scams will still be around the corner.

Let me give you an example: The Man Who Lost His Way to MOA

There was a man who wants to get to SM Mall of Asia from Cubao because he wants to see one of the biggest malls in the country.  However, he doesn’t know how to read.  But still he took a ride and gambled anyway.  To make things worse, he doesn’t know how to count also and paid 500 pesos to the bus conductor.  The bad bus conductor sensing that he is one innocent and gullible person, gave him 200 pesos as change saying that the fare going to Mall of Asia is 300 pesos.  Not knowing how to read and count he ended up with 200 pesos left in his pocket and got down in Tagaytay.  He lost his way, was not able to see MOA and got fooled.




Same holds true in investing your hard-earned money.

Wanting to arrive at your goals of financial security and freedom, you need to know why you want to get there and how to get there.  You need to know what vehicle to ride and how much will it take to reach to your goal.  Just like in the example above, without financial education, you may end up getting lost and scammed.  Instead of having a secured financial future, you may end up with a financial disaster. 




Investing is not gambling, it is a system that you and I can easily learn if we open our minds to it.  Because if we learn it, we can earn it.

Another example:  The Over-eager Investor Who Ended Up a Loser

There was once a man who wanted to invest his money in order to become a millionaire and gain financial freedom when he retires.  He got so excited with the prospect of making big money from stock market investing so he invested his savings of 200,000 pesos.  He doesn’t have any background in investing more so in stock market investing, he does not have any investment for retirement, does not have any insurance or health care.  He just jumped in to stock market investing because the opportunity to earn really big was just so irresistible...greed kicked in.

Unfortunately, after a few weeks, his stocks went down due to stock market correction, and to make things worse, he got real sick.

He was rushed to the hospital, he does not have any health care investment. So he took the money from his stock market investment ng "palugi" to pay for his medical bills.  But his illness was so severe that days after, he died.  He does not have any insurance.

Nawithdraw nya na ang buong pera nya sa stock market nya ng palugi na galing sa buong savings nya for payment for his hospitalization and when he died, he left his family with nothing because he did not have any insurance!

Do you want to want to go thru this?  Sadly, there are those who went thru this sad thing.






The point is:  education is the key before one should start investing whether in stocks, mutual funds, bonds and securities or UITF.  Because it is your hard-earned money that you will be investing, you should learn how to save and invest properly so that you can truly build a solid financial foundation. And if you know why you invest, you can do any how.

All of these of course could be learned easily.  And there are many people who can help and mentor you.


The Financial IQ of Filipinos


Read the true story of Mr. Benj and Fely Santiago, on how they were able to achieve financial freedom...once earning 6-digit salaries, got axed from their jobs faced with millions in debts.  How they were able to succeed?  Read here.

According to Fitz Villafuerte, a financial education advocate, numbers as to the level of financial education of Filipinos is quite disappointing, although there are also bright spots.  Here are some of data he shared:

  • 80% of working, middle class Filipinos see a bleak retirement and more than half expect to be supported by their children in their old age
  • Only 10% of Filipinos are consciously saving up for retirement  
  • Among the middle class, 36% save regularly every month while 51% only “save when they can"
  • 90% attempt to follow a budget, but only 33% stick to it
  • 40% pay their credit card balances in full monthly, while 22% pay only the minimum amount due in their credit card statements
  • When asked about investing, 43% think they know exactly what to do if they had money to invest, 53% have a “good idea” where to invest, while 4% have no idea how to invest
  • 84% of the working, middle class have no formal financial plan



KASAMA KA BA DYAN?  SAAN KA DYAN?


Don't be like those people who will say with regret that, "If had I only saved and invested earlier,"  "Had I only listened and sought for guidance,"  "Had I only taken care of my finances and learned how to manage my money well, I would not be deep in debt at old age."

The most painful word in the world is "IF".




The rich gets richer because they know how to manage their finances well and they know how to invest properly.  Investing is not only for the rich, it is for everyone, you should just know how to do it properly.

And now, we are offering you the KEY on how to do it, the same way the rich are doing it.

Want to fix your finances and get wealthy?


Don't be like those people who will say with regret that, "If I only had done this", "If only I started earlier investing and taking care of my finances, I should have not been suffering now in debt."
- See more at: http://truly-rich.blogspot.com/#sthash.oZPi2Meq.dpuf

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