There are 4 things you need to consider before investing specially in the stock market
- Plan: Before venturing into any investment you need to first answer the question: what are you investing for? By answering this question we would be able to determine the time horizon and the risk level we would be able to take for your investment. This would also help us determine your life goals. In the planning stage we would also be able to asses your cash flow.
- Save: in the saving stage our goal is to develop a habit of saving until we reach a certain ratio or percentage. If this is the first time you’ll be saving our initial target could be from 10% and move to 30%.And be able to save up at least Php 50k.
- Educate: since we have the habit of saving we could invest now in ourselves by education ourselves. We can do this by attending all the free seminars until we already know what the speakers are talking about. After we can now attend advance classes, seminars or workshops and we have 25k to use from the 50k we saved.
- Invest: now we are ready. We can now use the remaining 25k to open a broker account and start investing. But the planning doesn’t stop here. In every trade or investment we need to have a plan and save up to be able to invest more and continue to learn.
So Remember to do PSEi
Plan | Save | Educate | Invest