Things You Need to Consider Before Investing

If you are considering investing your hard earned money, check this 3 important factors you need to follow. Failure to do so might result to a failed investment.

As you know, investment should be done for long term. Time is one of the most important factor that can make your money grow higher until such time you opt to withraw your investment.


Before getting yourself into any investment, you need to educate yourself first. Know how it works, who manages it, what are the pros and cons, how much will it grow and everything you don’t know about it. Familiarize yourself with the ins and out of the investment. On this information age, all the information you need to know are freely available online. In case that is not enough, look for someone who can guide and assist you in explaining the things you don’t understand.

There are risks in investment. The only way to minimize it is thru education. Knowing what you are doing guide you on the best thing you can do in every circumstances.



Invest only excess money that you have. But before doing that, make sure you leave something for your emergency fund. In practice, the ideal emergency fund is around 6 to 12 months of your monthly expenses. Let’s say you have a monthly expenses of Php 10K, you need to have at least Php 60K to Php 120K in the bank that you can get anytime. Never mind if the money isn’t growing, as long as it is there when you need it.

Investment is done for long term. However, along the way, some unexpected emergency might happen like you get hospitalised, you lose your job or any other things. If you don’t have emergency fund, you might end up withdrawing your investment fund prematurely. Practice saving some of your income for this fund.



There are quite a number of insurance policies you can avail right now. Lot’s of insurance companies are also offering various packages, some with investment package to lure more clients. Whatever you take, the most important is you insured yourself. When you are investing for long term, most of your money will be far from your reach. In case you got sick along the way, the insurance will cover your hospital bills so that you won’t need to withdraw your investments prematurely. Same thing will happen in case the investor died, the insurance will cover at least the payment for the estate tax imposed by the government on all your remaining assets.

In short, insurance is a must you need to have even if you are not investing. Don’t wait until you get sick and face the consequences of having  huge bills.


Hope you get all these three done before you proceed on your investments. If you need to know more on how to invest, just leave your comment below and I’ll get back to you.

P.S. A year ago, I do not know anything about investment. Then I joined Truly Rich Club by Bo Sanchez. It was the best decision I ever made in my life. Brother Bo is a spiritual preacher and at the same time, financial literacy advocate whose purpose is to help people become rich in order to serve the LORD with the money that they have. He guided me along the way, explaining how I can manage my money and make it work hard for me. Now I’m investing in stocks and mutual funds and have a clear path for my future. Soon I’ll open UITF account as well. All are made possible by his guidance and teachings on every steps to become an investor. Being OFW isn’t forever, this is my EXIT PLAN. It’s amazing how his teachings change my life. I’m inviting you to join the club too, JOIN TRULY RICH CLUB. If you have any question, feel free to leave your comment below. CLICK HERE TO JOIN

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