Sep 8, 2013

How To Start Stock Investing

Do you want to invest in stocks but do not know how?
 
Well, it is not as complicated as you think it is. If you think you are not that knowledgeable about it, you need not know everything experts know. You can start with basic knowledge. Then, you can work your way to expand it exponentially as you continue investing.
 
When is the right time to invest in the stock market?

Now is the best time! Why? Stocks are on sale!
 
Yes, the market is bearish which means that prices of stocks are falling; hence, it is high time to click the button and buy stocks you can afford. And the bearish market will continue because of the chaos in Syria.
 
Just like in shopping stores, you can buy more stuff when products are pretty much discounted. So indulge.
 
Since the rationale is buy low, sell high, purchasing stocks at this point will give you big profits in the future so take advantage of the bearish market now.
 
How do you start?
 
 
Second, get yourself a trusted adviser. In the Philippines, the easiest way to do it is subscribe to Bo Sanchez’s Truly Rich Club.
 
Truly Rich Club uses Strategic Averaging Method (SAM) instead of Buy-and-Hold Method. SAM entails that an investor puts money every month. It has been proven that the use of SAM beats market timing. According to statistics, investors using averaging earn more than 90% of the market timers.
 
Truly Rich Club recommends a list of diversified companies to invest in. It also sends market alerts and hints like Buy Below Price (BBP) and Target Price (TP) of stocks to its subscribers. That way, every subscriber will not be overwhelmed and get lost in their buying and selling of stocks. Any price below the BBP is considered an attractive level to buy the stock. TP, meanwhile, is the Club’s estimated worth or fair market value as computed by various ways specific to its industry (i.e. DCF, NAV, P/E).
 
Third, open an online trading account. I recommend COL Financial, Inc. The platform is reliable and easy to use. Minimum investment is P5,000 for COL Starter and P25,000 for COL Plus. Click here to open an account. You can also try BPI Trade. In BPI Trade, you just have to maintain a minimum amount of P500 as balance.
 
Fourth, start buying stocks. And do not forget to invest every month! 
 
Do you need financial overhauling? Do you think that your financial life is not improving? Do something. Start stock market investing and and be ready to be wealthy.

Sep 7, 2013

Stock Market 101: Things To Know Before Starting

 
The stock market is one of the most misunderstood when it comes to investing. In fact, before, the first thing that comes to mind when stock market is mentioned is trading. And trading for them is gambling. Thus, mere mention of it sends chill to aspiring investors.  They would rather invest in some other investment vehicle than lose what they have in trading. But stock market is not just for trading (short-term), it is also for investing (long-term).
 
Stock market burns traders but not so much with investors. I am happy to see how people are slowly changing their mindset and gently opening their doors to stock investing.
 
Get Advice from the Pro.

Do not follow stock investing advice from friends, relatives and co-workers simply because they are close to you. Get it from the geniuses in the stock industry. They would not be in their shoes for nothing, right? Other people can tend to mislead you. Don’t be.
 
Trader or Investor?

Before you start, know first whether you want to be a trader or an investor. That will enable you to have perspective and focus.
 
Pick your broker right.

Brokers are the ones who will suggest what stocks to buy and sell and at what price. They are your agents who will execute all your stock transactions. They must be really good at it. Otherwise, prepare for disaster.
 
Buy low, sell high.

That is the rationale applicable to stock market. You buy stocks of a company that you believe will go high and give you profits afterwards. You can also earn dividends while owning some stocks.
 
Control your emotions.

Stock prices go up and down erratically. Do not expect to see a straight arrow up in your charts. Believe me, it will be a roller coaster ride so tame your greed and improve your patience. Do not let your emotions get in the way.
 
Financial education is key.

People buy beautiful and expensive things that eventually fade or depreciate. But only few invest in things that appreciate in time. People invest in good schools and spend a lot. They go to quality schools and shell out big money. But they rarely invest in quality books and seminars to get quality financial education and yield much more money.
 
In the stock market, getting yourself a good broker, exposing yourself to business news, reading trusted books, and attending helpful seminars can give you extra edge to retire a multi-millionaire.

Jun 5, 2013

Budgeting Made Friendly

Are you a spender or a miser?

I’m more of the former. I admit it, I’m bad at budgeting. Just the mere mention of it makes me cringe (yes, I’m not a huge fan of numbers).

Worse, I’m an impulsive buyer. I’m a member of the ‘One Day Millionaire Club’. And in time…gadgets depreciated, clothes tattered, and stuffs wasted. And I ended up saving nothing. Poor me, I let hard-earned money slip away that easy. With all the hard work, I’m penniless. How ironic.

But that was before. I’ve changed now. I realized that I have to learn budgeting to avoid personal financial crisis. I know I have to start early or else I’ll be penniless for the rest of my life.

How did I start? First, I set realistic financial goals. I list down the things I want to achieve and possess. I made them my inspiration. Then, I listed down my income and expenses in the previous months. Next, I separated essential expenses (food, house, electricity, internet, transportation, clothes, and other bills) from impulsive. Looking at the figures, I have cut a considerable amount from my usual expenses. From there, I started a budget I can live with. I prioritized my necessities. Finally, I looked forward to the future. If there are upcoming events in my life, I include the expenses to my budgeting. That way, it will not destroy my goals.



I have eventually learned to make budgeting friendly. The friendliest (also the simplest) budgeting for me is the 20-80, where 20% is set aside for savings (or paying off debts, if any) and the rest is spent on all other expenses.

There could be several friendly budgeting ways out there. You just have to choose what works for you. Believe me, it’s a small step that can give you peace of mind and success.


Once in a while, I pamper myself, spend, and celebrate. But I will never revert to being a shopaholic. I’m not saying “I'm now a scrooge” but I'm definitely more responsible financially. I know my future depends on how well I manage my income. I hope more people will realize it too.

May 27, 2013

5 Worst Money Mistakes and their Antidotes


Money Mistake #1: Living beyond your means 
Antidote #1: Spend way below your means. Stop overspending. 

It’s simple math. If you earn a thousand bucks, you don’t spend all. Worse, you don’t spend more than that. 
Overspending leaving nothing is the top reason why people can’t save, much more invest. The worst that can happen is for these people to be heavily indebted in the future. 

Picture this: A manager who earns 40,000 bucks and spends everything versus a clerk who earns 10,000 and saves 20% monthly. Who do you think will live a financially liberating future? 


Money Mistake #2: Living without a budget 
Antidote #2: Stick to a realistic budget. 

Are you living paycheck to paycheck? You should learn to make and stick to a budget – a realistic one. 

You want to take control of your money, right? Then you have to plan where it is going. It doesn't need to be complicated. You just have to know what works for you. One of the easiest budgeting methods is the 50-20-30 Rule. It means 20% is saved, 50% is for essential expenses and 30% for other expenses. 

You can write it down or use an app like Mint.com. Track down your expenses. You can even cut non-essentials and simplify your life. After a while, you will notice a more disciplined you when it comes to spending. Never underestimate the power of small change. 


Money Mistake #3: Investing without Emergency Fund 
Antidote #3: Build your Emergency Fund before investing. 

As its name suggests, Emergency Fund is money for emergency use. Emergency, for this matter, can take the form of an illness, death of a family member, job loss, home repairs, and other unexpected expenses. 

How much should you set as Emergency Fund? Well, financial experts say it should be 3-6 months’ worth of your living expenses. 

It may sound cliché, but we must expect the unexpected. And expecting it with a handy Emergency Fund is a good thing. At this point, you can start your investment portfolio without worrying where to get money in times of emergency. 


Money Mistake #4: Mindlessness of the future 
Antidote #4: Get Healthcare Plan. Seek Insurance Policy. Draft your Will. 

Are you too optimistic of your health? You think you’ll not get sick in the future? 

Let’s face it, as we age we become more susceptible to health problems. Thus, when sickness hits you, how do you pay the bills? As early as now, you should have healthcare plan and insurance policy for your loved ones not to fret when the unforeseen happens.

It's hard to escape illness the same way that it’s impossible to escape death. We will all die one day. But are we ready for what that day brings? A Will, be it holographic or notarial, can help you manage your property after your death. You can write there your sentiments and instructions. You can give loved ones their specific shares (provided they’re not contrary to law). It can be an instrument to a peaceful settlement of your estate. 


Money Mistake #5: Seeking advice from wrong people 
Antidote #5: Learn from the experts. 

If you’re seeking advice from wrong people, it means you’re not getting ahead. And if you dwell in that situation, you’ll not reach your financial goals. Hence, when you know where you want to stand in the future be sure to learn from the experts. They will certainly help you get there. 

Drop shortcuts. Ask investors, financial advisers, businessmen and other successful people. Listen to what they say. Read articles about stuffs. It pays off to get advice from people who really know their field. They won’t be successful for nothing.

May 23, 2013

Go the Extra Mile in Saving

How much have you saved lately?

Thousands? Good. 
Millions? Awesome.

Unfortunately, not so many people are keen at saving for the future. The formula used by many is:


By using this formula, most probably, the result would be minimal savings if not zero. Sad but true. 


How much should you have saved if you were not overspending?

Try introspection. If you were not overspending on wants and whims, how much should have been your savings?

Overspending and other wealth mismanagement habits are the culprits that make life financially miserable. If you keep committing the same mistakes over and over again, you will end up failing the same way too. These financial mistakes are there to serve a lesson. Hence, try to learn the lesson at the earliest possible time.

Truth is, for a surefire way to save, try this formula instead:


Financial Freedom - How are you getting there?

Each of us has the ability to build wealth. But the important question is: Are you giving it a GO or a NO?

If you want to create a change in your life, including financial freedom, DO SOMETHING. Do not expect wealth to come like a rocket (unless you win the lottery). Drop vices. Pay off debts. Slash guilty pleasures that are drilling holes in your pocket. Save more. Invest even more.

The modern world is pushing you to the quagmire of commercialism and materialism (Have you not noticed it yet?). Be smart enough to distinguish what you need from what the market thinks.

Aside from answering the ‘how’, more important is to know the ‘why’. Even if you know how to be financially liberating if you have no explosive desire to pursue it, it will not make sense at all. You have to have that powerful reason and conviction to free yourself from worrisome pecuniary woes. 

Do not let financial trouble control you. Instead, take control of your financial trouble. Change your mindset. Change your thinking. Come to think of it, you do not deserve a pathetic life full of debts and piles of bills that are hard to pay. You deserve much better.