Want to know how to invest money wisely? Today we will going to discuss the most important topic inside “financial literacy”, how to invest money wisely? It simply means, when investing money you are planning to make it grow, not to lose it, right? that’s why you want to learn the basic fundamentals of investing. We have to consider different things before you will go to the “investment world”, you must know the ways on how to save money, how can you be a smart investor if you don’t know how to save money? Saving money is different from investing money, especially when we are talking about “risk and returns”, but they have common benefits that can give you, first is to help you become a disciplined person, second is to help you grow your money and third is to help you achieve your goal to become financially free.
How to Invest Money Wisely?
Study and Improve Your Current Financial Situation
There are people who diverted their interest into investment because of the high promising returns or profits, but they are not aware about the things to be consider before investing money. First and foremost, you have to do something to improve your current financial situation (increase your total family income), by being an entrepreneur can help you to make this happen, build or start your own business, so that aside from your salary you can have another source of income.
There are lot of ways to make extra income even on the internet, some people knows how to make money online, they are creating a website, they sell products online, they are a virtual assistants and many ways to do to make extra cash online. See- make money online complete guide for beginners.
And you will have extra money for your investment, do not put your family or yourself in a worst situation, you have to make extra money for your investment. That’s why emergency funds are very important, set aside money for emergency funds aside from your money for investments.
Read More About: How to Start Your Own Business?
Get Life Insurance ASAP!
This is very important, for we don’t know what will going to happen tomorrow, good or bad (let’s hope for good things, ask and receive good things). If you are insured, you will never get disappointed when somethings going happen to you, example (disability), how can you help your wife/husband raise your kids to educate your kids if you can’t work anymore. At least, when you are “insured”, an insurance company can help you solve your family’s problem especially about finances. This is very common, if you want to get some life insurance, you have to search in your local city or ask some insurance agent on how to acquire it.
Know Your Purpose and Be Knowledgeable
You must know your “big” reason why you want to invest money, maybe your reason is because you know if you put your money in typical savings account, you will get low interest rate only, but if you will invest money, your money will grow overtime. Another reason is because it is very good part of your retirement plan.
If you want to achieve your goal in having time and financial freedom, you must be knowledgeable about financial management, how to manage your money, you don’t need to study the technical terms but at least the basic and how investment products works.
There are books and finance blogs that can educate you along the way, just keep on reading, have a self study, and believe me on this, studying financial education has a lot of fun! You can also attend seminars, but make sure the one who conducted the seminars are not just (financial experts or registered financial planner) but an experienced investor, they are the one who already invested, some coach and conductors has a Facebook account, if you are OFW and want to meet them in person, they are conducting seminars almost anywhere in the world, you can add them today;
Mr. Aya Laraya: https://www.facebook.com/aya.laraya.5
Mr. Randell Tiongson: https://www.facebook.com/randelltiongson
Mr. Marvin Germo: https://www.facebook.com/marvin.germo
Mr. Fits Gerald Villafuerte: https://www.facebook.com/fitzvillafuerte
Mr Romer Tawid: https://www.facebook.com/romer.tawid
To the ones I have listed above, sorry for not asking for your permission. Anyway, I have a good intention Sirs. And I believe you can help our fellow Filipinos about personal finance. Ask some financial experts now, or if you are financial expert, kindly help the readers to answer their questions about money. Thank you for your answers.- see question and answer about money.
Maybe you want to become a multi-millionaire in 10 years, how can you do that? Maybe in your mind, there is an “investment type” that you want to get into. That’s a great goal, to be a millionaire. You should become proud of it, not everyone has that kind of right mindset.
Invest Money Wisely in Different Types of Investment Products
There are different types of investment products that you should learn before investing your hard earned money, here are some of the investment products that we will discuss in the following days;
- Investing Money in Stock Market
- Investing Money in Mutual Funds
- Make Your Money Grow on UITF (Unit Investment Trust Fund)
- Invest in Corporate Bonds
- Real Estate Investment
- Annuity Investments
- Collectibles Investment
etc..(to write in other posts)
Plan a Goal – First Move
You have to plan a goal, your investment goal, what would you do about your investment. Let’s take an example below;
Invest Amount of Money Per Month: $200 Target $500,000
Investment Product: Stock Market
Company: ABC XYZ Holdings (Broker: DEF Money)
Period: within 20 years
You must write down your investment goal, plan it and most of all, do it. For if you will not take action, that’s just only a dream not a goal. What is the meaning of “goal” for you? For me, a goal is a “MUST ACHIEVE THING in a Certain Period of time”. No excuses, no don’ts and no alibis.No one can stop me to achieve my financial goal because that goal is for my family.
To make it easy for you, compute your “MUST HAVE” retirement target earning asset now. Compute now.
Take Action Habit – Second Move
Take action now, after you learned these things, stop reading, go for your financial goal, achieve it. Time is running out, time is gold you know it. For now is the best time to invest money, it is not tomorrow, or not when you get married or when you have kids, or when your retirement is in near. Today is the best time.
Read: How I Join BDO Easy Investment Plan (UITF Investment)
If you will follow these tips, you will become financially free in the near future, this is so easy to follow, even an high school student can do this, if you are financial literate person, you know what I really mean here because this is just the basic knowledge on how to invest money.
A Summary on How to Invest Money Wisely
As a summary, this is what you should do accordingly and in proper order before investing money;
- Study and Improve Your Current Financial Situation
- Have Emergency Funds (some experts advice about 6 months but I suggest good for 1 year for sure)
- Increase Your Total Family Income – start your own business online and offline
- Get Life Insurance First- just in case unexpected events may happen
- Know Your Purpose and Get Knowledge – the reason “WHY? you want to become rich.
- Know the Different Types of Investment Products- mutual funds,stocks, bonds, annuity, etc.
- Create an Investment Plan – Your First Move (when do you want to become a multi-millionaire?)
- Take Action Habit – Second Move (No Action, No Results)
In investing money, you are allowing money to work for you, how? Your money grows over time, you should invest early and as soon as you can, but you must follow this guide for you to not get into worst financial situation.
Must also read related to this topic are;
Millionaires Mindset for Success – learn the habits of rich people especially in investing money.
Best Time and Places to Invest Money – where and when to invest your hard earned money.
How to Achieve Your Goal Easily and Successfully? – just a motivation about achievements and successes in life.
Money Qute and Sayings for Today:
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Money allows you to enjoy the finer things in life as well as giving you the opportunity to help others have the necessities in life. Most of all, having money allows you not to have to spend your energy worrying about not having money. – T. Harv Eker
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