“Never depend on single income. Make investment to create a second source.” – Warren Buffet
While working before as bank teller, I learned how to invest, to make money earn itself. Generally, people are categorized as RISK AVERSE, RISK TAKER, or RISK NEUTRAL. Why as a woman, it is for our own good to invest?
- Because of the power of compounding, the money earns over time. So, if you want to keep your money for 5/10/20 years, better invest it and let it earn while you sleep. Are you a conservative person who would rather have a small interest but sure investment return (Risk averse – example: time deposit), or you want to take risk to have a higher return but can also lose much when the economy declines? (Risk taker – example: stock investments) or you may want to have a balanced return, thus, you rather choose to divide your initial mount of investment in different kinds of investments? (Risk neutral – example: a woman may choose to divide her money, 10% in time deposit/SDA, 50% in stocks, 40% in equity bonds/mutual funds).
First, identify your risk profile before you start investing.
Second, identify your time frame – is it a short term or long term investment? Some investment companies have lock-in period (for example 5 years) wherein you can monitor your investment, and withdrawing within the prescribed period is not recommended.
Third, the longer time duration you want to invest your money in an established institution, the higher the profit (provided that the economy is stable).
- As time passes by, the economy of our country (Philippines) is promising in terms of investment.
Ever wonder there are many malls, condo units, financial institutions, almost everywhere in the cities?
Even foreign capitalists invest in our economy by putting up businesses, establishments, franchises, so, as Filipinos, why can’t we maximize our resources?
First, conduct a research regarding the stock market, the economy, and the inflation rate, what can you say?
Second, be careful on which financial institutions you will invest your money. Some financial returns are too good to be true. Choose wisely.
Third, monitor the progress of your investments. Don’t just rely on hearsay.
Fourth, opportunity loss is just a paper loss, unless you want to withdraw your account when the economy declines, that’s when you will have an actual loss.
- As a single and young woman, you also want to have a quality education for your child/children.
Due to inflation rate, even quality education comes with a higher cost.
Even government colleges will cost twice, thrice the tuition fee these days while the minimum wage of a Filipino worker is increasing a peso higher per year. What can you do as a Filipino worker to help yourself, your husband, your family, financially, and to have a lesser stress when it comes to your child/ children’s education?
- As a woman, you also want to travel to your dream places, or be of financial help to your family, and to do that, you need to maximize your income.
Few months after being hired as a bank teller (first work), I started investing. It takes sacrifice and self-discipline, but I believe some great things take time.
So, take a stand, be wiser, and invest now.
© Jennifer Francia P. Villanueva, RPm
“Piso ni Juan kahapon, Piso pa din ba ngayon?”
A Symposium on Financial Responsibility
April 11, 2015
UST Graduate School