By Jalene B. D. S.
My first investment was in the stock market. I’ve heard about it since I was in high school and was curious to know how it works and how to invest. Guess, I was overwhelmed by the numbers and figures I saw on TV so I didn’t dig deeper about the concept of the stock market back then.
But one day (I’m a working professional already), I’ve heard that a church mate of mine works at a stockbroker company in the country. You cannot quench my curiosity, so I asked her about the concept of the stock market since she’s a client of it as well. She advised me to attend seminars held by their company and take note it’s for free. I grabbed the opportunity to learn more about it. There’s quite a few seminars they provide and each seminar you’ll attend to is worth your time and very applicable towards your journey into the real world.
The most common technique (well-proven) that they recommend for beginners to use is the “Peso Cost Averaging” method, wherein you’ll invest a portion of your income (I recommend 20% of your income) or set a fixed amount you’re willing to invest regularly (whether monthly, quarterly, semi-annually, annually) without fail over a long period of time. Usually, the maturity period of investing in equities or the stock market is 10 years or more. Consider it as your retirement fund or your future fund for whatever gaoals you have in the future.
And that’s how it all started. Once you started investing, it will become a habit and you’ll look for other investments you can put your money into. That’s what you called “diversifying your portfolio,” to minimize the risk while pursuing your financial goals in life.
Open an account one at a time. Aim for this 3 investment tools: Stock market, mutual funds, and UITF. Once you started investing, you need protection for your other investments that’s why a Life insurance is a must though some people think negatively about getting a life insurance but the truth is, we need it.
There’s VUL products available in the market now if you don’t want to get a pure insurance. If you’re a beginner and has limited resources, it’s a perfect investment tool, since it’s a life insurance with investment component. It uses the same method used the stock market to grow your money.
We’re blessed that we live in this generation where even ordinary people can invest their hard-earned money so they’ll have future fund to whatever goal they have in life.