Personal Development, Finance, and Investing For Filipinos
An investment in knowledge always pays the best interest. Financial Education is your best investment.
Someone's sitting in the shade today because someone planted a tree a long time ago.
Before investing in any financial products, make sure that you have the following:
Have a household budget
Set and follow a reasonable budget. It will help you determine the amount of investible funds or excess cash you truly have after providing for your needs.
Build and maintain an emergency funds
Set aside separate funds or a separate account that can cover emergency expenses. Remember that investments have inherent risk of money loss, and returns are never guaranteed.
Manage your debts wisely
Make sure that your budget covers your debt repayments. It will be difficult to create wealth if the returns you will get from your investments will just be offset by the interest you pay for your debts.
Study and Investigate before you invest
Know the investment instrument that you are buying, the agent and financial institution you are dealing with, and the government regulators that you can turn to should the need for redress arise. Assess your risk appetite, your investment objective, and your investment horizon. Find an investment product that fits your financial capacity and unique situation.
Remember the "Risk-Return Tradeoff"
Remember that all investments have risks. "The higher the risk, the higher the return. The lower the risk, the lower the return." This holds true, regardless of what the investment is, or who manages it. Do not believe offers that promise to "double your money" or guarantee that there is "no risk of loss". These are usually scams.
Diversify your investments
When you do decide to invest, diversify in different products that have varied risks (low, moderate, high). Do not "put all your eggs one basket". Develop a "sleep-well" portfolio, which means that your investments should not be worrying you unnecessarily.
Invest for the long-term
Keep in mind that your money needs time for it to benefit from the power of compounding interest. Start early and invest for the long term. Do not believe offers that promise to "double your money" in a short period of time. All legitimate agents and financial institutions with legitimate investment products cannot guarantee high returns or deliver "get rich quick" schemes.
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ABOUT THE BLOGGER
Hi, I'm Ralph Gregore Masalihit!
An RFP Graduate (Registered Financial Planner Institute - Philippines).
A Personal Finance Advocate. An I.T. by Profession. An Investor. Business Minded. An Introvert. A Photography Enthusiast. A Travel and Personal Finance Blogger (Lakbay Diwa and Kuripot Pinoy).
Currently, I'm working my way toward time and financial freedom.