Ask the Readers: The Purpose of Investing Your Money

By Grace

Ask the Investors: Why Are You Investing? Hi, as you have noticed this blog is too personal blogging about my investments in stocks and mutual funds and other things related to personal finance. Let me ask you a simple question, why are you investing? What is the purpose of your investments, please share it as an inspiration for those who are not yet investing their money.

I just started last year, first I invested in stocks through COLFinancial. The moment i expand my knowledge about investing, I became more interested not just in stocks, but also in mutual funds and UITF (Unit Investment Trust Funds).

But, the problem I encountered was I didn’t prepare the things before investing such as paying all my debts, acquiring a health and life insurance and building an emergency funds. I made a mistakes! Few months later, I rearrange everything. I stop investing, lessen my debts, bought an insurance and build an emergency funds. The advantages of these events was that I already have an investment funds, which is very easy for me to invest whenever I want to.

Ask the Investors: Why Are You Investing

To Retire Young and Rich (Retire at Age 50 with 10,000,000)Lesson: Take action, make mistakes and learn from it.

A second mistake, I just invest money, but I didn’t make any financial goal and don’t even think seriously why I am investing. This 2015, my investment goal is to acquire my target earning asset for my retirement age. I invest money because I want to retire young and rich.

For as low as P2,500 per month in my UITF equity account. I know this small amount of money can help me get my retirement target earning asset. While I am computing my target earning asset using this financial tool, it only cost P1,000 per month. Take a look of the Future Value of P1,000 here.  Maybe I am still young and I have of years to prepare.

Why are You Investing Money Anyway?

Creating an investment plan is very important.. I know it is. That’s why I think seriously the purpose and the BIG reasons why I am investing;

  • To Have a Passive Income for My Retirement(Money Work for Me)
  • For My Short-Term Investment (To Buy My Dream Car – Ford Everest)
  • For Other Long-Term Investment (Education Fund of My Daughter)

These are the reasons I am investing. I have a short-term and long-term goal. One of my long-term goal is to fund my child’s education (my daughter is only a 9 month old). I am just 20 years old turning 21 this year. I know I can do this. I am willing to learn and accept any challenges just to make sure I will retire young and rich. My retirement age is 50, I still have 30 years to prepare. Stocks and mutual fund equity are my chosen investment vehicle.

What about you? Why are you investing, anyway? Is it for a new car also after 5 years? A house and lot after 10 years? Or a passive income for retirement? Share your purpose using the comment box. Thank you for reading this “not so” personal finance topic.

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