MANILA, Philippines – A time will come when your income from your day job won’t suffice for your increasing needs. You will need more money, perhaps to make an important purchase, support your child’s education, spend for a medical treatment, sustain a lifestyle, cover unexpected expenses, build a home or reach your financial goals.
But some people are reluctant to make an investment because they are scared to lose money in the process or are intimidated by the seeming complexity of investing. If you’re part of the club, don’t worry. Here are a few pieces of advice to help you become confident and get started with investing:
1. Don’t be too scared to take a glimpse.
Sometimes, people fear investing because they don’t know much about it. If you want to reach your financial goals, see whether making an investment will help you.
Read up. Know how investment works, the different investment types, dos and dont’s, and the jargons, among others. You can also attend seminars and listen to related podcasts. Engage in conversations and ask questions. Just learn as much as you can.
You will be surprised by how having knowledge about investing—even just a little—can take out your fear and make you a little confident.
2. Stop aspiring to get rich quickly.
Who doesn’t want to have plenty of money instantly? No one. Everyone wants easy money.
Unfortunately, the most legitimate ways to getting rich, including investing, require labor.
“It takes time to get your windfall. There’s no such thing as get rich quickly,” 8990 HoldingsCEO JJ Atencio told Philstar.com.
Making an investment, no matter what type, entails work—researching, monitoring, calculating, studying and more. Patience is therefore a must-have, and without it you would always end up frustrated.
3. Check out different types of investments.
Did you know that there are several types of investments and that you can pick the one that best suits your risk tolerance and personal financial goals?
If you’re still unsure about the risks and want to go safe for your first investment venture, you can study low-risk investment types like certificates of deposit, savings accounts, treasury bills and bonds. Keep in mind though that low risk also means low yields.
You can also study making an investment in the real estate industry, where you can earn passive income by renting out a property, or putting up a business.
4. Don’t be afraid to fail.
Mistakes and failures are normal for starters. They’re part of the learning process. (So, don’t worry too much about losing money. Just remember to put in as much as what you can afford to lose.)
It’s just like what well-known motivational speaker Francis Kong wrote in his 2015 article on the STAR as he talked about the feeling of entitlement: “Ask why people succeed and the real winners will tell you they accomplish their own failures. They took the initiative to do things. They explore new possibilities, and in doing so own up to their mistakes.”