Is investing only for the rich? Or is it also for the common people like OFW and corporate employees? Perhaps, it is easier now to invest in the Philippines because of many available means of investing such as stocks, UITF, or mutual funds.
However, investing may seems to be difficult for ordinary people who has no background on these things. It can be intimidating even hearing the word “investing”. I have experienced the same condition before I started investing my money in the Philippine stock market.
I do have a past experience about stocks because in my first job I was given a certain number of shares of the company’s stock. However, I didn’t have the eagerness during that time to study what stock investing is all about.
As I have said before, investing seems to be too hard, even among OFW. Before investing your money, you must learn how to start by reading and studying about investing. In this article, I would like to give you some ideas on how to start investing as an OFW. Please continue reading.
1. Learn the best investing advice
Last month I have published an article about the best investing advice that I can give to a newbie investor. Take note that I am not a professional investor or financial planner; my advice should be taken as for information only. You should invest with great care and diligence.
There are lots of investing ideas and advices you can get out there. Blogs are great resource information that you can use. Follow blogs about investing like this blog of mine to get ideas on how to invest.
Studying and learning along the way will be a great way to learn how to invest. Also, prior investing, you should understand what the investment is all about. Be skeptical at first, it will help you to make better decisions.
2. Save money first
Saving is the pre-requisite of investing. It is much better to have a savings first at least 3 months of your expenses before you begin investing.
Investing has no assurance of return except time deposit which is guaranteed by the bank and insured by PDIC. Thus, it is very important not to put all your money on your investments like the business you are planning, in the stock market or even mutual funds.
In addition, many people are also looking for quick money when it comes to investing. You should avoid this kind of investment because more likely they are scams or frauds. The best way to invest is consistent, slow investing. Don’t be fooled and tempted by the advertisement of very high returns.
When it comes to saving money, be sure to open a savings account at the bank you preferred so that you can have a secure place to put your money. I think it is the only way where you can put money with protection.
3. Have a definite plan
Planning your investing strategy will be crucial. You should consider first how much money you need to save and at the same importance, the amount of money you need to pay for your debt.
I suggest paying first all your debt before trying to invest. It is a lot better if you have no debt and you have sufficient savings before entering the investment world.
A definite plan would comprise of how much money you can put into investment and the frequency you will make on investing that money. For example, some people follow the cost averaging method when investing in mutual funds or stocks. In this method, you will put a certain amount of money in a regular basis, maybe monthly or quarterly.
4. Make sure to understand what you’re going to invest
Understanding your prospect investment will be very important since it can give you the overall picture of how the investment makes money in the long run, what are its products or services and the people behind the investment or business. Most people fall into scam because they don’t know what they are dealing with. They are ignorant about the company behind the business.
As an OFW who wants to start investing, you can learn and understand the investment you want to pursue through researching first the company or the nature of the business. I’ll tell you it will help a lot in your decision making.
5. Open a stock or mutual fund account
Even if you are working abroad or living there for quite long time, you can still open an account in order for you to invest in stocks, UITF and mutual funds. The normal procedure would be downloading the application form at the website of investment company or stock broker.
In their websites, you will also find more information about their company and how to start investing. Be patient to browse the content of their sites.
6. Buy shares using the available money you have
With the available balance you have in your account, start buying shares of stocks or mutual fund that you want. Take note that you cannot buy these two on the same account, you need to have a separate stock broker and mutual fund account.
Like what I have said earlier, it is better to buy stocks and mutual funds in a regular basis if you can do it. I think it is the simplest strategy so you will not “time” the market. At the end, the price of stock and mutual fund will be on the average and you can have a better return in the long term.
An OFW can start investing even he’s working abroad because there are many available means today. You can open an account at the mutual fund or stock broker company by sending your application via a registered mail. Start investing now and then reap the rewards later!
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