People think we need a large amount of money to invest but how much is enough.
Is there starter plan for first time Investors?
This article talk about what investment available to you, how to choice the right investment instruments and what to expect from it?
What is investing?
– It’s about commenting money or capital with the expectation of getting something in return.
In finance its called return and investment, so you purchase a financial product with the expectation of getting interest or income or appreciation of value of the money.
Anything that basically gives you returned.
Investing is about making money work hard for you. It a passive income that it gives additional return.
It’s like extension of our regular income, let say when you have a job or invested in a business under taking. So where you put your time and addition to that you can put some money in the investment instruments and that’s how you get additional income, in a way it’s a passive income that gives you additional return.
Passive income almost seems like you don’t do anything but actually there’s much more do it.
Major consideration before investing or make your money work for you.
First We need to differentiate SAVINGS AND INVESTING.
Saving is to set aside your money like emergency fund and then if you have money excess after you save that’s the time you have to invest. The objective of investing is to beat inflation.
In your savings account you have an interest half a percent per annum. That too small..
While inflation ranges from 4 to 6 percent per annum. Imagine if you have a money on savings account and inflation eating its purchasing power, that’s 4 percent reduction every year.
So if you like to beat inflation or you want to grow your money, You do Investing.
Here’s another thing to consider before investing, you have to Know Your Self.
It’s like understanding your financial goals. This is sooo important to persevere your investment objective.
Know Your Risk Profile;
What is your investment objective?
Preservation of Capital – you want to keep safety of your capital.
Regular Income – in addition to what you have maybe you want to augment it by thru return on your investment.
and Growth in Capital – that’s usually for people who have the time to go thru different investment cycles who can afford to put money over a long term horizon and expect return on investment over a long period of time.
What is your investment horizon?
Short term – for vacation, one to two years
Medium term – if you’re waiting for your retirement.
A person in his 60s can invest in instrument that will earn regular income and at the same time preserve capital.
Long term – investing from 10 to 30 years if you’re in mid 30s. A good investment for this is to invest on Stock Market.
A person in his 30s can afford to take risks and face different market cycles, the Up’s and Down’s on the investment market.
What is your investment personality?
It’s really about your risk profile, when you make an investment you want to know if you were able to sleep at night. How much risk you can handle and withier you put your money on risky investment or you should put your money on more conservative investment instruments.
For example if you put money on Equities or invest in Stock Market and then you can’t sleep well at night you better put your money on more conservative investment.
FYI
Did you know investing is not just for the rich? Now a day’s Banks and Financial institutions offer products with very low minimum entry.
As low as 5000 pesos you can start investing in Mutual funds, and UITFs. These kinds of investment are professionally managed.
If you like to invest personally in Stock Market with a great guidance, click here
How do we know what’s investment that suite our personality?
After knowing your personality and knowing your objectives it’s now time to understand, what are different financial instruments that are available on the market?
Investment Instruments
Cash and Money Market Instrument – Like Savings Account, Time Deposit, Fixed Income Instruments, and Treasury Bills.
Bonds- are debt instruments that pay a fixed interest with a specific period of time and mature on a certain future date.
It’s like lending your money to a corporation or a government. So when you invest in government bonds it’s almost virtually risk free let say you’re investing in a stable government which is denominated in the currency issued by that government. So bonds normally pay a fixed interest with in specific period of time and it mature in certain future date. There is a guarantee of payment at some maturity date but of course it depends on the issuer and it depends on the credit worthiness of the issuing corporation or government, so you want to invest in corporate bonds or government bonds which you think good pay and stable.
Stocks or Equities- where you can buy a share of a certain company, like PLDT when this company grow then your value per share of stock will grow too but if goes down, it has the same effect.
FYI
Did you know that stocks is powerful investment instrument can grow your money significantly, from 12% to 20% per year.
But before doing so you have to invest time, by studying company profile; like growth, history and etc.
But if you don’t have time to do this, but like to invest in stock market personally then you have to pay someone to do the things or leveraging someone work.
That’s how I did it, leverage other people work. I joined Bo Sanchez cause his work are crucial to my investment, for his great guidance in investing in Stock Market. What Company, in What Price to Buy and What Price to Sell. Click here if like to leverage Bo Sanchez great guidance.
The good thing is there are soo many investors like me that subscribe his work, and the good news is We are all happy! and keep our money growing every year, that’s 20% annual growth.
Happy Investing
Many of us want to invest but don’t know where to start.
People think we need a large amount of money to invest but how much is enough.
Is there starter plan for first time Investors?
This article talk about what investment available to you, how to choice the right investment instruments and what to expect from it?
What is investing?
– It’s about commenting money or capital with the expectation of getting something in return.
In finance its called return and investment, so you purchase a financial product with the expectation of getting interest or income or appreciation of value of the money.
Anything that basically gives you returned.
Investing is about making money work hard for you. It a passive income that it gives additional return.
It’s like extension of our regular income, let say when you have a job or invested in a business under taking. So where you put your time and addition to that you can put some money in the investment instruments and that’s how you get additional income, in a way it’s a passive income that gives you additional return.
Passive income almost seems like you don’t do anything but actually there’s much more do it.
Major consideration before investing or make your money work for you.
First We need to differentiate SAVINGS AND INVESTING.
Saving is to set aside your money like emergency fund and then if you have money excess after you save that’s the time you have to invest. The objective of investing is to beat inflation.
In your savings account you have an interest half a percent per annum. That too small..
While inflation ranges from 4 to 6 percent per annum. Imagine if you have a money on savings account and inflation eating its purchasing power, that’s 4 percent reduction every year.
So if you like to beat inflation or you want to grow your money, You do Investing.
Here’s another thing to consider before investing, you have to Know Your Self.
It’s like understanding your financial goals. This is sooo important to persevere your investment objective.
Know Your Risk Profile;
What is your investment objective?
Preservation of Capital – you want to keep safety of your capital.
Regular Income – in addition to what you have maybe you want to augment it by thru return on your investment.
and Growth in Capital – that’s usually for people who have the time to go thru different investment cycles who can afford to put money over a long term horizon and expect return on investment over a long period of time.
What is your investment horizon?
Short term – for vacation, one to two years
Medium term – if you’re waiting for your retirement.
A person in his 60s can invest in instrument that will earn regular income and at the same time preserve capital.
Long term – investing from 10 to 30 years if you’re in mid 30s. A good investment for this is to invest on Stock Market.
A person in his 30s can afford to take risks and face different market cycles, the Up’s and Down’s on the investment market.
What is your investment personality?
It’s really about your risk profile, when you make an investment you want to know if you were able to sleep at night. How much risk you can handle and withier you put your money on risky investment or you should put your money on more conservative investment instruments.
For example if you put money on Equities or invest in Stock Market and then you can’t sleep well at night you better put your money on more conservative investment.
FYI
Did you know investing is not just for the rich? Now a day’s Banks and Financial institutions offer products with very low minimum entry.
As low as 5000 pesos you can start investing in Mutual funds, and UITFs. These kinds of investment are professionally managed.
If you like to invest personally in Stock Market with a great guidance, click here
How do we know what’s investment that suite our personality?
After knowing your personality and knowing your objectives it’s now time to understand, what are different financial instruments that are available on the market?
Investment Instruments
Cash and Money Market Instrument – Like Savings Account, Time Deposit, Fixed Income Instruments, and Treasury Bills.
Bonds- are debt instruments that pay a fixed interest with a specific period of time and mature on a certain future date.
It’s like lending your money to a corporation or a government. So when you invest in government bonds it’s almost virtually risk free let say you’re investing in a stable government which is denominated in the currency issued by that government. So bonds normally pay a fixed interest with in specific period of time and it mature in certain future date. There is a guarantee of payment at some maturity date but of course it depends on the issuer and it depends on the credit worthiness of the issuing corporation or government, so you want to invest in corporate bonds or government bonds which you think good pay and stable.
Stocks or Equities- where you can buy a share of a certain company, like PLDT when this company grow then your value per share of stock will grow too but if goes down, it has the same effect.
FYI
Did you know that stocks is powerful investment instrument can grow your money significantly, from 12% to 20% per year.
But before doing so you have to invest time, by studying company profile; like growth, history and etc.
But if you don’t have time to do this, but like to invest in stock market personally then you have to pay someone to do the things or leveraging someone work.
That’s how I did it, leverage other people work. I joined Bo Sanchez cause his work are crucial to my investment, for his great guidance in investing in Stock Market. What Company, in What Price to Buy and What Price to Sell. Click here if like to leverage Bo Sanchez great guidance.
The good thing is there are soo many investors like me that subscribe his work, and the good news is We are all happy! and keep our money growing every year, that’s 20% annual growth.
Happy Investing