Saan Maganda Mag-Invest?

This is a question raised by some of the newbies online. They have the money and seems ready to invest but don’t know where to start. This is a recipe for disaster and prone to scam. By letting everyone knows that you are in need of help, you are most likely to receive messages from someone asking for your money to invest in what ever venture they have, all very promising.

This is a tricky question and very vague.

If you ask a real estate agent selling condo “Saan maganda mag-invest?”, they will say buy a condominium. Rent it out and get a passive income.

If you ask an agripreneur “Saan maganda mag-invest?”, they will say buy a farm land and invest in agriculture. Plant high value crops or raise livestock.

If you ask a forex trader “Saan maganda mag-invest?”, they will say invest in forex and earn dollars.

If you ask a stock trader “Saan maganda mag-invest?”, they will say invest in stocks. Buy low, sell high and make profit out of it.

If you ask a business “Saan maganda mag-invest?”, they will say build a business. Be a boss and make people work for you.

If you ask some people online “Saan maganda mag-invest?”, perhaps some of them might say invest in pooled funds. Invest and forget, a great way to grow your money over time.

If you ask that question to people involved in scam, then you might end up joining them. Investing your hard earned money and get nothing in the end.

You see, the question is too vague to get an accurate answer. People, depending on their current investment, might give you different answer base on their experience. But it doesn’t mean that what works for them will work for you. There are many factors to consider.

Let’s say you manage to get answer from a real estate agent and told you to invest in a condo. How would you know it’s best to invest in real estate if you don’t know how other investment works?

All investments have different factors that may not be suitable for you. These includes time horizon, capital required, rate of return, complexity, time and skills required. Knowing each of them will give you right judgement to get involve in what ever opportunity that suits you.

For me, the best way to answer the question is to tell the person “Aral Muna Bago Invest”. But don’t get offended by it, I am just cautioning you about the consequenses. Learn before you earn.

Education is almost free nowadays. Just go to google or watch youtube videos to educate yourself.

If you are in Singapore and you ask me this question, I’ll ask you to attend our regular financial events and learn for yourself. There’s no excuse now of having no knowledge in whatever venture you want to get into. Check our past and upcoming events here

Invest in education first. Invest in your time to learn new things about different investment vehicles even before you invest your real hard earned money. All investment have risk. Invest only in something you understand and you are comfortable with.

If you will tell me you don’t have time to learn and just want to invest your money, I’ll probably not help you. If you can’t help yourself, no one can. Unless you hire a professional fund manager to handle your finances and investment.

Here’s our steps we need to achieve before even investing:

1. Cashflow. Make sure money coming in is more that money coming out. How can you invest if you are on a negative budget?
2. No debt. Before even investing, make sure you settle all your high interest debt, like credit card debt. You don’t like to end up paying more interest on the bank than what your money can grow in your investment.
3. Emergency Fund. This is the money you should have in the bank or readily accessible. In case of emergency, you know where to get the money and not pull out on your investment. Maintain at least 6 months of your monthly expenses.
4. Get Insurance. It’s too costly to get sick nowadays. The best protection you can get is by getting yourself insurance to cover you agains life, medical and accident risk. Preserve your asset by adding insurance in your portfolio.
5. Now is the time to INVEST 🙂

So instead of asking “San maganda mag-invest?”, why not ask “Anong magandang aralin kung papano mag-invest?” or “Papaano mag invest sa mutual funds” (specific question). By raising this questions, for sure people will help and point you to the right direction. Learn as much as you can. That’s how you can grow and protect your money.

Happy investing!

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