Monthly Archives: March 2014

Financial Freedom, Invest After Being Debt Free

24 Monday Mar 2014

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Not everybody can experience financial freedom, actually it is rare to see people who is experiencing financial freedom. But how could you really experience financial freedom? I believe it is only, if you are debt free.

Before, when I have surplus money I normally opt not to pay future payment such as monthly amortization and school fees. Because what I believe is that I can still use the money to make it grow. But sad to say it always lead me to debt.

There are times that you spend money which could cover advance payment for school to your wants. If you have money in your pocket or ATM the tendency is you can easily decide buying your wants instead of paying your monthly payment in advance.

As an example SSS payment can be made for the whole year. If you will not pay for the whole year, even you are capable to do so, tendency is that monthly SSS payment can be one of the reason why you will be in debt. Sometimes small amounts when accumulated will give head ache and lead you to be buried in debt.

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It is also the reason why most people who have declared being debt free in credit card tends to borrow again due to unavoidable circumstances. Those are people who after paying off their debt, did not work out for their emergency funds.

For OFW who owns Credit Card in Philippines, it is not wise to use the credit card overseas. As per computation the moment an OFW uses his Philippine Credit Card overseas, he have to pay additional 3% of his purchase due to exchange rate adjustment. By the way it my personal experience.

Investment shall only be made if you are debt free. I must admit that I did investment even if I am not debt free, but the sad things is that there are times I need to pull some of my investment just to cover my emergency needs. I need to learn investment in the hard way.

It is really important to be educated before investing. Know the risk and opportunities before investing. Don’t just go to investment because your friend told you to do so, or because your idol to you to do so. Be prepare in investing and learn to know your risk tolerance.

Happy Investing

Investing Needs Focus, No Risk Free Investment

22 Saturday Mar 2014

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If you decide to invest you need to be focus. You need to focus on your goals. I need to remind you the basics of investing, know your goal before investing into any investing vehicle.

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For short term goal, invest to a non-risky investment and for long term goal you may invest in riskier investment. It is a fact that time reduces the risk of any investment, but time does not eliminate the risk. Every investment has its own risk you just need to make sure that you understood the risk before allowing yourself to be part of that investment.

When a broker says that they are offering a “Risk Free” investment I could say that it is a scam, or the broker does not know what he is selling and he is only after the commission.

Many of my colleagues who got their insurance due to sales pitch of brokers does not know their policy well, they don’t even know why they get those insurance. And worse they feel that it is a burden paying those insurance.

Insurance is a must in investing. Without insurance, your investment might be wasted. Just imagine being sick without insurance, definitely the last resort to do is to touch your investment especially if you did not work out you emergency funds.

There are lots of investment vehicle, before going to a certain investment, learn and know the risk associated with it. Before getting the next investment you need to master the ins and out of your chosen investment.

In addition always remember not to keep all your eggs in a basket. Which mean don’t keep your investment in a single investment company. Diversify.

Investing is Not Easy, But Definitely Rewarding

18 Tuesday Mar 2014

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invest-2Who says that investing is easy? For me it is not, it involves self discipline and goal setting. Imagine choosing to invest your hard earned money in replacement of having fame in your office by owning a new gadget that worth thousands of pesos. I was a spender for almost 10 years before I learn investing, and I could say that it is not easy changing paths going to Financial secure life.

It was easy to spend and use my credit card and spend on my “wants” rather than stopping my craving with new gadget in town. After learning about financial literacy by joining different Facebook groups and talking to mentors as well as reading books about finance, it made me realize that even investing is hard at first, time will come that it will be your life style. In addition it feels good to know that at least you are expecting something for your future.

I said it’s rewarding because time will come, you will harvest the fruits of your hardship in investing. Time will come that you can meet your goals and objective in investing.

Imagine being financially secured when you get old, you can do whatever you want like doing your ministry for the Lord or even travelling all over the world.

It is better to suffer for a while and gain in the future.

Here are 10 things I regret in doing for the past 10 years before i become an investor.

  1. I did not bother paying my SSS
  2. I did not even save or open a mutual fund account while blogging earning is good.
  3. I did not put 20% of my income to any investing vehicle.
  4. I did not read books during my spare time.
  5. I did not talk to people who knows about investing.
  6. I perceived insurance as not important because I am young.
  7. Investing to educational funds which I did not learn first  and ended me paying for nothing due to bankruptcy.
  8. Not investing in Training and seminars.
  9. Procrastination
  10. Believing that every financial adviser only wants my money.

Some of the items as mentioned above might be what you are doing now, I suggest learn from my mistake and start learning before investing. Good day.

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