I recently attended the Business and Investment Opportunity Forum conducted by Primavera Residences together with its partner bank BPI Family Savings Bank. It proved to be a very productive and enlightening few hours for me. The forum which is the first of a series, is aptly titled SOAR or Sustainable Opportunities and Advocacies in the Regions.
One of the topics discussed during the forum is something each and everyone of us should be concerning ourselves — INVESTMENT. The inspiring talk conducted by Louis Sidney “Mark” T. Capanzana the Investment Counselor/ Trust Officer of BPI-Cagayan de Oro, was full of eye-opening ideas that made me alternately scratch my chin in deep thought and examine my investments and finances right then and there.
Here, I’ll be sharing with you 7 key points that Mark discussed. Hopefully this will hit a chord inside you and propel you to take some actions too.
Concept No. 1: KNOW WHAT YOU HAVE
You can’t really grow something that you haven’t really identified yet, right? Or as the speaker puts it, “you can only grow the things that you measure.” That being said, the first thing you need to do if you want to grow your money is to examine your current financial situation.
As a tidbit of information, did you know that the average Filipino only has P6,785 worth of savings? And the sad part is, only 2 out of 10 Filipinos actually have money in the bank. To remedy this situation, we should take to heart this formula:
Income – savings = expenses.
Remember to pay yourself first before you pay the bills.
Concept No. 2: SAVING IS NOT INVESTING
Most people don’t really give a lot of thought about investing, and saving is often mistaken as a form of investing. Well, it’s not. Saving is just like putting your money inside a piggy bank and leaving it there for a period of time. Investing is a totally different story altogether. It is making your money work even harder, and letting it grow bigger and bigger in the process.
Take for example putting your money in time deposit versus in a bond fund. The interest for time deposit would be at 0.75%, while for bond fund, it’s at 4.5%. See the big difference?
Concept No. 3: BEAT INFLATION
As Mark describes it, inflation is like running on a conveyor belt. The prices of commodities increase so you have to make more money. Your money should be growing faster than the prices can increase, It should be outrunning inflation and kicking it in the gut.
Concept No. 4: INVESTING IS UNIQUE AND PERSONAL
Just as each person has a unique personality, so does our own individual investment personalities differ. Based on a little quiz Mark gave to the attendees, it turns out that I have a moderately aggressive investment personality. And I have to agree on that.
Whatever your investment personality is, there is a set of investments suited for you. Find one that suits you best. There is no one-size-fits-all for investments. If you know the kind of risks that are suited to you, then you will be able to sleep easier at night and feel better with your choices. After all, our peace of mind is something we should always factor in on our decisions.
Concept No. 5: THERE ARE DIFFERENT KINDS OF INVESTMENTS
The higher the risks, the higher the return. Which one should you go after? Remember, the high-risk investments aren’t for the faint of heart. Based on your personality, you could focus on the types of investments that are better suited for you. Take time to read up and research. Better yet, talk to an investment counselor like Mark.
It is also advisable that you mix up your investment options a little. Like the cliché goes, never put all your eggs in a single basket.
Concept No. 6: TIMING DOES NOT WORK
While some people insist that investment is all about timing, our speaker begs to disagree. We shouldn’t just rely on timing. The important thing is to start early and to do it consistently. As an example, your 100 pesos each month could become 1 million in 40 years, when invested properly. Place it in the same investment for 30 years and you’ll get only 300,000. Bottomline is, it’s not timing that is important, but rather, it is the length of time.
So if you’re asking when is the best time to invest, the answer is: YESTERDAY.
And finally, the last concept.
Concept No. 7: INVESTMENT IS FOR LIFE
Investment isn’t just a one-time thing. It’s something that should be part of our lives.
Investment is something that a lot of young people sweep to the backs of their minds and label as “FOR LATER”. But the earlier we jump into this bandwagon, the better. Financial Management seminars can be quite costly, but Primavera and BPI Family Savings Bank were generous enough to impart these knowledge to us for free. You should grab this chance too and let it help you carve better plans for the future.
Find out more about the upcoming investment and business opportunity programs of Primavera Residences. Click HERE.
Posted by Tags: business opportunity in the Philippines, Investing in Cagayan de Oro, investing in Mindanao, Investing in the Philippines, investment opportunity in Cagayan de Oro, Investment opportunity in the Philippines