The road to success for young investors is very much like navigating the gridlocks on the streets and avenues of Metro Manila on a Friday payday. These simple guideposts outlined in our infographic below should help you develop good investment habits to get you on the road to financial stability especially for millennials just starting out in their careers and exploring the right approaches on how to invest.
1. Save regularly
A solid habit of saving regularly is vital in setting and achieving investment goals. Compel yourself to set aside a portion of your income monthly. Your priorities in your productive years should include saving not only for an emergency fund. Part of your savings should also be allocated for investments which have the potential of earning more than the interest rates of bank savings accounts (which typically can just range from .10% to .50%).
Getting into the habit of saving might be difficult, but it can be done if you enroll in payroll deduction services or scheduled online transfers. This system of forced saving is easier as the amount of money set aside is already fixed and already excluded from your monthly spendable funds. An emergency fund plus forced savings allow you take some risks in investing, knowing that you have a backup. One investment guru suggests cultivating the saving habit first by starting low at around 6 percent of total income and gradually increasing the cut as you find more ways to reduce your expenses.
2. Rule out emotions
Emotions are is best left out when investing, and reason should prevail. Our close-knit culture as Filipinos often drag us into venturing on investment proposals solely because a relative or friend presented them.
This should not be the case, however. Investing successfully is based on actual merits or returns that you could derive from it. Learn how to say “no” to a proposed venture even you risk offending a friend or relative in the process. Sure, consider their proposal, but don’t let your emotional ties with them cloud your judgment as you evaluate the viability of the investment idea or project.
3. Learn and continue learning
It is certainly smart to start a journey in investing by reading books and attending workshops or seminars on the wide-ranging subject. You can start with Ready to Be Rich Guide to Investing by Fitz Villafuerte or the works of Bo Sanchez, Choose to be Wealthy and 8 Secrets of the Truly Rich. For seminars on wealth-building, COL Financial holds regular events in Makati and Davao, while the Philippine Stock Exchange holds free weekly seminars on stock investing every Tuesday at their offices at Tektite Road, Pasig City.
Armed with valuable learning from these learning activities, you can identify ventures best for you and your mindset. In the process, you can set specific goals along with the strategies and timetable toward them more precisely.
As important, don’t stop learning as the investing arena is a dynamic environment. Business conditions can change, affected by different factors including social and political shifts. Knowing or anticipating developments that can make an impact on investments allows you a judicious look at the goals you’ve set and revise them accordingly if necessary.
4. Seek professional assistance
Attending workshops or seminars on investing allows you the opportunity to set up a network of like-minded individuals and professionals who can further share their learning with you. Growing a network will likewise expose you to various types of investments, such as mutual funds and other venues available in the financial markets. This will enable you to diversify your investment portfolio, distribute risks, and maximize returns from what you have invested.
5. Explore real estate bargains
Investing in real estate properties is one area that should definitely be a part of a young investors’ game plan. Value appreciation of a condo for sale in BGC, for example, can substantially improve your net worth within a reasonable period of time.
A lease or resale of your residential condo could bring much better returns because real estate assets traditionally appreciate better than other forms of investments. In the relatively newer central business district of BGC or Bonifacio Global City, prices of luxury three-bedroom condos were estimated to have risen by 2.7 percent in the 2017 first quarter from the level during the 2016 fourth quarter.
The great thing about buying a condo unit as an investment is that many opportunities are now available, particularly in BGC and other urban districts of Metro Manila. In exploring ways to build your asset, all it may take to start is an online visit to websites like that of Avida Land. This site alone is replete with condo options which could very well deliver some of the fruits of cultivating good investing habits.