How To Start Saving Money And Invest Wisely

9/16/2020

Don't just save your money, learn to invest. Savings and Investing are two different things. This is how you know the difference

On Savings

It's not about how much money you make. It's how you save it. Form the habit of saving by repeatedly doing it until it becomes second nature.

Regardless of your age, if you are planning to retire at any time, it is important to save today, save consistently, and save wisely.

Pay yourself first! The concept is simple:

Every payday, the very first thing you do is set aside
a percentage of your income in a savings account.

Pay Yourself Formulas

Income - Savings = Expenses
Income - Savings & Investments = Expenses
Income - Savings & Tithes = Expenses
Income - Savings & Tithes & Investments = Expenses

On Investing

Are you investing wisely?

Warren Buffett said, "Someone's sitting in the shade today because someone planted a tree a long time ago."

First, never get into something you don't understand. Is there a friend inviting you into a business you know nothing about? Think twice and thrice and four times before jumping in. I'm saying this because I've seen many that have lost their whole life savings and retirement fund. After all, they got into things they didn't understand.

Second, never put your life savings into high-risk investments. If you have negligible funds that you're prepared to lose, then go ahead. Practice due diligence. Due diligence simply means doing your homework and finding out which statements are opinions and which are facts. Beware: Too much due diligence is also called "Analysis Paralysis."

Third, seek and choose your mentors wisely. If you seek wise counsel, you multiply your chances for sound decisions.

The Bible says in Proverbs 15:22, "Plans fail for lack of counsel, but with many advisers, they succeed."

Conclusion

Small sacrifices go along the way! All the hard work. All sacrifices. All the sleepless nights, struggles, downfalls, it all pays off.

Cheering on you! Stay safe and healthy! God bless!

To a better you!

4 Comments

Jen

9/23/2022 04:53:19 am

Hello, what are the best investments for first-time investors? Could you suggest? Thank you!

Ralph link

9/23/2022 05:27:36 am

Question: What are your financial goals?

You must first decide what your financial goals are. What do you want to accomplish, and in what period? What's your risk tolerance, the amount of risk that you're comfortable with? Without a clear understanding of your desires, your needs, and your potential concerns, what to invest in is not clear.

But for first-time investors, here are some investment vehicles that you may consider, especially if you have no experience or knowledge in investing. Mutual Funds, Unit Investment Trust Funds, and Exchange-Traded Funds (which pool the money of many investors to purchase various securities) are a good start for first-time investors. Ideally, first-timers should also invest in a mix of stocks and bonds.

Always do your research on performance and fees from a trusted website or financial advisor before investing.

Edgar

10/18/2022 10:23:53 am

Hi, I would like to have your idea. I'm earning six digits per month (tax already deducted).

Here's my concern, I feel that my money is just sleeping in the bank. I would like to invest in other things as well as the stock market. I'm also looking at financial and investment books, can you recommend any?

I'm earning a lot but it's like nothing, the money is just sleeping in the bank. Thank you and more blessings to you!

10/18/2022 10:57:41 am

Yes, The bank interest rate in a savings account is low (Gross Interest Rate Per Annum 0.0625%, as of October 19, 2022—based on one of the big 3 banks here in the Philippines), plus it still has a tax. Inflation is also a factor here.

As always, there is no simple answer to this question. You must first decide what your financial goals are. What do you want to accomplish, and in what period? What's your risk tolerance, the amount of risk that you're comfortable with? Without a clear understanding of your desires, your needs, and your potential concerns, what to invest in is not clear.

How old are you? (Your age is also a factor). Are you single or married (Having a plan)? Do you have dependents?

Before investing, know your: Purpose, Appetite for Risk, Time Horizon, and Hurdles. The most important thing that you need to do first is to have a good financial foundation. Like building a house, you must build it from the ground up. Build it right. Build it strong. You can build a proper financial foundation. Maybe you're asking, how can I build a solid financial foundation, and why is it important?

👉 Know And Increase Your Cash Flow
👉 Health Care
👉 Life Insurance
👉 Debt Management And Save Early
👉 Emergency Fund
👉 Define Goals And Priorities
👉 Understand The Rules Of Investing

📍 Here you can find the 10 must-read investing books that I'm sure will help on your investing journey.

👉 The Little Book of Common Sense Investing by John C. Bogie
👉 The Bogleheads' Guide to Investing by Taylor Larimore, Michael LeBoeuf & Mel Lindauer
👉 Stocks for the Long Run by Jeremy J. Siegel
👉 Market Wizards by Jack D. Schwager
👉 How to Make Money in Stocks by William J. O' Neil
👉 Reminiscences of a Stock Operator by Edwin Lefèvre
👉 A Random Walk Down Wall Street by Burton G. Malkiel
👉 Beating the Street by Peter Lynch & John Rothchild
👉 The Intelligent Investor by Benjamin Graham
👉 Common Stocks and Uncommon Profits by Philip A. Fisher
👉 The Richest Man In Babylon by George S. Clason
👉 Rich Dad, Poor Dad by Robert Kiyosaki
👉 The Millionaire Fast Lane by MJ DeMarco
👉 Your Money or Your Life by Vicki Robin
👉 The Science of Getting Rich by Wallace Wattle
👉 The Millionaire Next Door by Thomas J. Stanley and William D. Danko
👉 Total Money Makeover by Dave Ramsey
👉 Secrets of the Millionaire Mind by T. Harv Eker
👉 Think and Grow Rich by Napoleon Hill
👉 CEO At 22 by Sean Si