Leo is a good friend of mine who has been investing for a couple of years. He’s a runner, a health buff, and a photography student. He’ll be sharing with us how he started into this crazy world of investing and how you can be inspired with his financial journey:
1) How did you start investing?
When I was starting my career as a programmer, I was able to save half of my salary. After 10 months of saving, I was able to reach the minimum amount required to open a time deposit account. The rate of time deposit account that time was 7% per annum.
After 2 years of being employed, I was able to get my first hundred thousand savings. 😀
I quit my first job and went to my present company. They gave me a more competitive salary and good benefits. My daily expenses also went down because we have a meal allowance in our canteen.
I knew that I need to manage my finances wisely to complete my goal. I want to achieve my first million before the age of 30.
I am no longer satisfied with the returns that banks can give to me. That’s why I do my homework.
I have joined online forums (Income-tacts.net, Kerygmafamily.com, and Pinoymoneytalk.com)
I bought personal finance books (richdad poor dad, cashflow quadrant, retire young retire rich, secrets of a millionaire mind, Wealth within your reach 1 and 2, 8 secrets of truly rich)
I also read personal finance blogs of Randell Tiongson and Tyrone Solee’s Millionaireacts.com.
2007 when I started to invest. My first investment was Employee Multipurpose Cooperative.
I got pretty good dividends in coop until now.
I started investing in pooled funds on August 2008. A month before Lehman Brothers (Lehman was the fourth-largest investment bank in the US) filed a bankruptcy.
It was a very humbling experience. I was devastated when the US went into recession. I do not have any idea what is “subprime” means. I do not have a choice but to hold my investment and wait for the market to recover.
After 2 years of being Ipits, the market started to bounce back. 2011 was the year when I decided to invest in stockmarket.
2) Who inspire you to invest?
I got the idea of investing in books and seminars. I get my investment ideas from personal finance advocates like Randell tiongson, Salve Duplito, Efren Cruz, Francisco Colayco and Bo Sanchez.
3) What are your greatest and biggest learning so far
1. God gives us the capacity to produce wealth. All of our investment is his and we are his fund manager.
2. You should have a financial goal (short term and long-term). Every investment must have a purpose.
3. Aral Muna Bago Invest
4. Every investment has a risk and reward. You must know your risk tolerance.
5. You need to diversify to minimize the risk. Do not put your eggs in one basket
6. Invest only money that you can afford to loose
7. Time is your ally. Compound interest is very powerful tool. The early you invest the better.
8. Fear and Greed are the two deadly emotions that can ruin your investments.
9. Learn and discover an Investment strategy that fits you.
10. Investing is fun 🙂
4) What would you suggest to an ordinary Filipino who was never started saving or investing?
Invest in knowledge; educate yourself about personal finance and investments. Most of us were afraid to take the risk of investing but we will never know unless we try.
Learn to manage the risk instead of avoiding it. Start small and think big.
At first, you can make some mistake. Do not quit! Failure is just part of your success. You must learn from your mistakes.
5) How do you see yourself in this journey 10 to 20 years from now?
I see myself still active in investing and hopefully I already have a lot of income generating assets that time. I hope my retirement fund was sufficient for my family to live a comfortable life. I want to be retire early and become a financial planner so that I can help other people to manage their finances.
I hope FILIPINO FINANCIAL FREEDOM FORUM is still active and i want my family to continue to part of this advocacy.
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