"Wise spending is part of investing. And it's never too late to start."--Rhonda Katz
According to Investopedia, investing is the act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.
In simple words, investing is an activity where you money grows and works for you. And in this area where financial freedom begins.
We have been taught by our parents that in order for us to have more money is for us to work more hours. Well, that's what I have learned too. But not anymore.
My mentor, Robert Kiyosaki mentioned in his book, "Cash Flow Quadrant-Rich Dad's Guide to Financial Freedom" that it's very important to identify ourselves in which quadrant we belong and which quadrant rich people belongs to. See the illustration below:
Cash Flow Quadrant
Before we proceed, it's a must for you to identify which quadrant do you belong? Is it in quadrant E, S, B or I?
Most people who belongs to quadrant E are those people who lives in a rat race condition. I'm sure most of us can relate. Before your paycheck comes, your salary is already finished. And since life has to move on, we take loans in order to live normal life. And at the end of every year, you got zero savings and more debts to pay. That's rat race!
Your financial freedom begins when you transfer to B and I quadrant.
Please don't resign yet from your job. Have your timetable with you and layout your game plan so you can escape the rat race at the soonest possible time.
Let me share to you my story.
Only in 2012 I started walking to I quadrant. As I said, "I'm walking" because it is a slow process. My mentoring helped me a lot to open my mind about investing. As an Overseas Contract Worker (OCW), I was introduced to Stock Investment (not Stock Trading) in the Philippines by a friend of mine. I never thought that I can start as an investor for only P5,000.00. You read it right. But before, you need P100,000.00 to open an account with COL Financial.
After more than a year of investing in Philippine Stock Market, I was able to grow my investment by as much as 52%. If you are interested, just let me know so I can be of help.
To traverse an unfamiliar route, it is a must to find a mentor who can guide you. So that's what I did, I joined Truly Rich Club of Bo Sanchez. As a member, I will be assured of guidance on what stocks to buy, when to buy and when to sell. Plus all the information I need to know about investing, wealth strategies, email updates and both audio and video talks.
There are lots of investment vehicles you can ride on. Always select which is best for you. Investopedia enumerates the Three (3) Groups of Investments: ownership, lending and cash equivalents.
Ownership Investment includes stocks, business, real estate and precious objects.
Lending Investments include saving accounts and bonds.
Cash Equivalents include money market funds.
I choose stock investments because it's a long term one. The risk is comparatively less than stock trading because in stock investments, we only buy blue chips stocks.
Lastly, in investing there's no age limit. And you can always start now!