First I need to commend you for checking this post out. Most people like my age wouldn't even bother to check this out because of two reasons:
Investing is not as appealing as shopping and partying, at least to teenagers
1. I mentioned investing and to most 20-ish, investing is not a cool thing. At least in general, it doesn't seem to be as appealing as partying and shopping.
While most people I know are busy trying to figure out what's new in the Hollywood or who is Miley Cyrus' new boyfriend, I get busy reading about the latest news and what's up with the business world. My friends know that I don't talk with them unless it's "business" or mapagkakaperahan.
Investing may take away my money so why bother?
2. Another reason why most 20-ish people won't bother checking this post out is that they'd think that I would suggest them some get-rich-quickly scheme. Well, read on because I won't.
I must admit, I am such a risk-averse person. Well, most Filipinos are. That's why only 1% of Filipinos are investing in the stock market. It's not because Filipinos cannot afford to do so. Unfortunately, 99% of population are uneducated when it comes to this type of investing option. We're too lazy to study about it. Or maybe too nervous. Either way, it's crippling us to make the most of our money. We tend to choose the "easier" way which we have grown up seeing our parents did, investing in banks.
Yes, banks are our traditional and most trusted vehicle of investment. Thanks to those fancy advertisements in the television that make us feel that our monies are secured. I'm not against about investing your money in banks, because I personally started with it. Again, it's your first step in investing.
But if you come to realize, Philippines probably has one of the highest inflation rate in the Asia, if not in the world. So what? How does it affect you? It greatly does! That means that last year I was earning 1% on my regular savings interest but now enjoying only 0.75! (Now how do I really say I am enjoying it when the banks are giving me but a small portion of the money that they're earning while they're making hefty amount of money when I borrow money from them starting with 6% as the lowest! )
I know, it's unfair. It's so unfair that I looked into many other investing options such as bonds, treasury bills, insurance and stock market invest. Anything, as long as I don't have debts!
I am still a newbie when it comes to investing. But at least I wanna get rich, or die trying.
If you're 20-ish and you're still reading, go clap 3 times for yourself. Clap. Clap. Clap.
If you're reading this post because you want to get rich right away, kindly go away as this post is not for you. My goal is to encourage and exhort as much 20-ish people like me, to invest. Whether it be with bank deposits, stock market, bonds, mutual funds or any other types of investment options, it doesn't matter. As long as you have th desire to invest. Well, here's what you need to do. Put aside a small portion of your monthly earnings and for starters, get a savings account. If you're having problems with saving, then most likely you'd have troubles investing because after all, where would you get the money to invest? Perhaps you can go ahead and look for possible ways to make money first.
That's a question I have been faced four years ago. I thought investing was only for rich people. I was wrong.
Investing is not for rich. It's for the people who want to get rich. Get rich or die tryin.
I wish there's someone who made me realize that in investing, time and timing are very essential. For the younger generations, utilize a powerful tool that most older people lack, time. You have plenty of time to earn, learn and start investing.
Now here's why you should consider investing in the stock market. Or in any other types of investment options. But for today's purpose, I suggest you investing in the stock market.
1. It's where the money is
I always wondered what made Manny Villar so rich. Then with intensive research, I have learned that he worked, he earned, saved then invested--in many investment vehicles. He's such an intelligent investor like Benjamin Graham, he put his eggs in various baskets. With all these baskets, the basket for the stock market has the most eggs because it's where the money is.
When you're earning 1% in regular savings (take note, my bank now gives me 0.75 only! They told me because it's what BSP told them), 3% on time deposits, you can earn at least 6% in a week.
No kidding right there! I can give you bazillion of stories of people who have done it, but let me give you a classic one about how a college drop-out has become a millionaire. His name is Edward Lee. No he's not related to any Chinese business taipans. He had a school teacher for a mother and an ordinary door-to-door salesman for a father. He learned about the frenzy inside the stock market. He didn't get scared with those zigzag-like lines and dots in the stock market but actually got curious with them. He studied them, talked with people who are into it and invested and to cut the success story short (I know you just wanted to know the ending, right?), he now owns the fasting growing online broker in the Philippines, Citiseconline. Not to mention, he's a mega-millionaire. He's got bazillion of money, not in banks but in stocks!
2. You own a part of it
One of the best advices that the intelligent investor, Warren Buffet ever gave is that in everything you invest into, think of it as your own. Well of course! How would it feel to step in to Jollibee store's doors and greet the security guard with pride because you own a small part of it? At first it may sound crazy but it's true! Literally.
3. Learning is constant
Of all things, I value learning the most. No money can compensate the learning that I have been enjoying for the past few days just by studying the stock market, getting tips from people who have been successfully doing it and the growth (in all aspect: intellectually, financially, emotionally) I have been experiencing.
I learned how to highbrow shop. A skill that is not just useful in stock market investing but in daily dealings.
I became more curious and conscious of what's happening in my country and the world when I used to care only about what I dress I will wear for school. I've learned to appreciate the Accounting 111, 122 and what used to be boring banking and finance lessons I had. There are countless of benefits, stop robbing yourself of these opportunities. Again, NOW is the best time to invest in stock market.
I don't want you lurking around my blog telling me that you lost your fortune just because I encouraged you to get into this risky investment option. It should be noted that you should study all that you can about this option. You should learn the basics, consult a broker and really get yourselves be familiar with how it works before actually jumping into the wagon. What matters now is that you decided that you will save a portion of your earnings and decide that you want your money work for you and not you being slave forever for money.
It doesn't matter what you have. It's what you do with what you have that makes a difference.
Hope you're like the wise and talented person in the Bible who used his talents to multiple and didn't hoard it with the fear to lose it.