How long you’ve been investing in mutual funds and stock market (Philippine)?
Me? More than two years. And I am planning to continue for many more years as my investment horizon is a long term. The purpose is to achieve my financial goals: to have college fund for my children and for our retirement fund once we decided to stay in the Philippines.
I must say I have some doubts when I started investing in the stock market and mutual funds. After all, I thought investing is exclusively for an expert finance people and not for an ordinary OFW like me. In addition, it’s quite daunting and risky.
However, with proper mindset, I had realized every Juan Dela Cruz can participate in the growing economy of the Philippines. So, let me share with you these five things I’ve learned from my financial journey.
- Be patient
Patience is a noble virtue that can also be applied in investing. It is the very first lesson you’ve learned in mutual funds and stock market. You’ve got to be patient. You don’t have to hurry and see the instant result of your investment.
You need to see the value of patience and learn to ride with the ups and downs of the stocks over a certain period of time. When the stocks are down, you cannot do about it. This is beyond your control. When you see the reds in your portfolio, you need not to worry because it will go up again. You just need to have patience and learn how to wait. I noticed the growth later in my investment portfolio particularly the shares at BDO and Cebu Pacific. Start planting the seed to day so you will harvest one day.
- Understand the value of time
As a newbie investor, I have seen the value of time in investing. Once you know that time so precious, you wouldn’t waste it. If I have known this before, I will certainly invest right after I get my first job. That is why I get another COL Financial account for my eight-year-old son because I understand the value of time.
In fact, compounding interest is another wonder of the world as what Albert Einstein said. In my opinion, procrastination is one of the greatest enemies of achieving your financial goal. Unlike the grasshopper, the ant had used his time wisely. So, he doesn’t have to beg for food during winter like what the grasshopper did.
- Find a great mentor
An investment in knowledge pays the best interest. So, ask advice from experts and educate yourself before you do investing.
While other investors are worrying so much during financial crisis, I am confident and secure that my mentor will remind me that crisis is an opportunity to earn more. In addition, I don’t have to look at my portfolio every single day.
- Have discipline
Many times I tempted to spend my hard-earned money with things that are not so important. Therefore, discipline and consistency are essential to cultivate the habit of investing. For instance, right after receiving my salary, I have to invest 5,000-8000 pesos every month. I thought this was easy at the beginning especially if you are used to eat at the mall almost every week.
The investment principle is quite simple: instead of working for money, let your money work for you over a certain period of time.
- Learn to manage the risks
Every investment has a certain risks. Whether you saved money in the bank, or invested in mutual funds and stock market, or just starting your dream business, investment always carries risks.
The best way to approach the risks is to invest for long-term goals and diversify your investment. A diversified investment is a portfolio of various assets like equities, bonds, mutual funds, and money market that earns the highest return for the least risk.
So, the truth about mutual funds and stock market is not just about money itself but how to handle your finances as an OFW.
To get to know more of investing, mutual funds and stock market, follow the author’s blog at richlyblessedtoday.com
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