Investing is the most exciting but most demanding part of financial planning. It requires much careful study and needs thorough understanding of different risks and returns considerations. We have to go through much needed education.
Thus, the first step to investing is getting education on the rudiments of investing. Before we even dabble in investing, we need to make sure you really know what we are getting into.
We can liken this to diving into a pool. Would you dare jump into it , if you do not know yet how to swim? Certainly you'll drown unless you know how to swim. Same with investing.
We also need to make sure that the basic foundation of your financial plans had been laid out. These were discussed in earlier blogs: Increase Cash Flow, Plan for Protection, Create Emergency Funds, and Eliminate Debts. Only after these had been laid out should we even talk about investing.
We also need to make sure we know our competencies and passion that we will match up with our investment avenues. Are we business oriented, do we have the knack for money markets and stocks/equity investing? Do we have the needed tools and facility to do it? Does our mental and physical capabilities match up with what investment we want to pursue?
We must also do thorough study of the companies we will invest our money into. We need to do research and the most convenient way is through the internet. So many people are duped by high rate of returns that eventually turns out to be scams.
We also must make sure we are diversified. We must not put all our eggs in one basket as the proverbial saying goes.
Another thing we need to know and learn are the different avenues where we can invest. These are several available opportunities: 1. Franchising either a consumer goods, food cart, or fast food store, 2. Buy and sell of real property or vehicles, 3. Sari sari Store, 4. Cooperatives, 5. Mutual Funds, 6. Stocks/Equity Funds, 7. Condo or Apartment Rental Business, 8. IMG Business.
We can group all these investment opportunities to three major groups : 1. Real Estate, 2. Paper Assets, 3. Business. These will generate Rental Income, Interest on Investments Income, and Rate of Return on Business Investments.
I can say we know much of the rudiments of most of the mentioned investments for we do involve ourselves on it. We have rental income from our condo and apartment, we have investments in mutual funds and stocks equities, we have investments on cooperatives, and we do have our IMG Business.
I can't cover the complete details of investing in this blog. However, our company provides the needed education for investment opportunities on well refuted companies. We can show you how your money can work for you, and make you your own financial adviser. We can give you all your needed information so you can make a wise decision on where you can invest considering your financial goals, your risk capability.
We must not embark on our INVESTMENT PLANS till we complete this first step: EDUCATION....
Will proceed with our Planning for INVESTMENT next blog....
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