Investment 101

"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!

                                     

                                                           

Getting Rich Is Not A Sprint, It's A Marathon

"Never be in hurry to get rich!" --Bo Sanchez
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Bo Sanchez, in his article  "Increase the Quality of Your Wealth By Increasing the Quality of Your Work", mentions that there are 3 Ways of Becoming Rich.

First is by Walking To Your Millions. According to Bo Sanchez, this process will take place for around 20 years. If you have a steady income, this technique is applicable to you. All you have to do is to invest 20% of your monthly income in a gigantic companies through the stock market. Imagine yourself owning a giant company as a common share holder. Do you think you can invest at least P2,000.00 every month in the stock market for 30 straight years? Assuming it grows 12% per year, so in 30 years, you will have P6.5 Million. Slowly but surely, isn't it? 

Second is by Running To Your Millions. By running, it simply means you have to be ENTREPRENEUR. You own the business. You run the business. Bo Sanchez clarifies the difference between walking and running to your millions, he said "An investor owns a small part of a big business, while an entrepreneur owns a big part of a small business." 

He recommended to use the combination of walking and running to get your millions.

I'm sure you can relate to the story of the person who choose to race rather than to walk or run to his millions. Most probably, the guy who race his million can achieve it a year time. But before you conclude that Racing To Your Millions is better than the rest, take a look first with a beautiful story in the article:

Read on...

"One day, three friends--Walker, Runner, and Racer--heard of a gigantic pot of gold sitting on top of a mountain. The only way to reach it was by foot. 

Walker chose to WALK up the mountain. 

Runner, a little bit more physical, chose to RUN up the mountain. 

And Racer, who is very impatient, chose to RACE up the mountain like he was in a 100-meter dash. He believed it was a race—that the first guy to reach the top wins the pot of gold. And the others won’t have any… What happened to this third guy? After 30 minutes of running like a maniac, he collapsed. He suffered a massive heart attack and died up the mountain."

I'm sure you realized the moral of the above story. (Are you sure?)

It was in 2010 when I started my advocacy for my financial freedom. I would say that from 2010 to 2014, I had initiated significant changes. I invested in education like courses on blogging and internet marketing.

I get more mentors. I read their stories and remembered their stories of failures. They say that a wise person is someone who learns from his mistakes. But there’s someone wiser than that. The WISEST person is someone who learns from other people’s mistakes! With that in mind, I became more intelligent in choosing what business to venture. Since, I'm not yet ready to become an entrepreneur,  I chose to become as an investor (Philippine Stock Market). I also ventured into a networking company to enhance the skills I needed to become as a full pledged business owner in 3 years time.

How about you? Would you be a Walker, Runner or Racer to your millions?


P.S. If you a Pinoy Internet Marketer, this online course is for you, just click this link: http://www.ignitionmarketingph.com