Ang 10 year movement ng Philippine Stock Exchange Index ang magandang pagbasehan if you are a “long” investor who is waiting for the history to repeat itself.
Lump sum or Cost Average?
One scenario is that kung mayaman ka na noong 2009 at nag-invest ng one-time (lump sum strategy), you have tripled your money. That’s right, you gained 300% in 8 years.
Pero kung nagi-ipon ka pa lang every month from 2009, the result will be completely different. This is the second scenario, it is here that I am most fitted. Since I am still in the accumulation phase, I save and invest regulary (cost average strategy) the money from my full time job and part time online business.
If you are investing regularly regardless of the price, you are doing cost-averaging. Put money in your investment that you don’t need in the short term. Better if you have no intention to take it out 10-15 years from now. This is called “delayed gratification”.
Kaya tayong wala pang malaking asset, ipon-ipon lang muna buwan-buwan sa Unit Investment Trust Fund (UITF) na naka-base sa PSE Index. Invest regularly, gawing buwan-buwan kung makakaya mong makapag-save mula sa iyong kinikita sa lahat ng sources of income.
Set a goal and work for it
Don’t look at the daily market movement, look at your own results if you are on your way to achieving your goal. It’s better to monitor kung naaabot mo ang “goal” mo, hindi ang short term results.
My first goal when I started with my UITF fund is to save P1M in two and a half years (until December 2017). But that was done early this month of August way ahead of my schedule. My next goal is to save and invest P1M from August 31, 2017 until August 31, 2018. Now I’m setting a new plan to hit the goal.
Create a plan, apply it, then adjust if required. Don’t change your goal and the time when to reach your goal, rather, change your pace to make your goal a reality.
That’s my strategy. Only time will tell if it will work for me just like for others. Keep investing little by little, time will pass anyway. Let time work on your side.
As always, learn to earn first, then learn to save, and finally, learn to make your money work.
Do you need coaching how to become a millionaire? I can be of help. Let’s build your part time online business, and from that part time business comes extra income that you can put in your investments.
Be inspired to become a millionaire. Don’t settle for less.
Here’s to your success!