Usually, when I am out of books to read because I have not borrowed or purchased one lately, I tend to re-read another book. That book I want to re-read depends on what I am looking forward to re-learn as I venture into a field that may look unknown to me. But I am fully aware of the risks and potential that come with such field.
The Turtle Always Wins: How to Make Millions in the Stock Market
It was a pretty good investment for my part because it has been in my possession since buying it last July. Now I have come to a point where I make the real financial investment - by investing in the stock market. With Brother Bo's vision to make others become multimillionaires and the guidance in going into such opportunity, I believe I would prosper in such field and in return, be able to help others prosper as well.
...but this post is not about the Stock Market
I can't just talk about the stock market because I, myself have yet to start engaging into such investment. And I would be stupid enough to give advice over something that could entail serious risk on your money.
Rather, I'm going to emphasize on a point that Bo Sanchez made in this book, which I can almost relate to such point.
Rather, I'm going to emphasize on a point that Bo Sanchez made in this book, which I can almost relate to such point.
The more books I have read, the more seminars I have attended about personal finance and investment opportunities made available to everyone, I realized that one of the greatest assets you can take control of is time. Without learning how to realize the value of time, you will never know how much time you got left to save - or invest - for your future.
To appreciate the value of both time and money, think about your goals that you have set when it comes to your financial aspect. What do you want to have five years from now? How about 10? How much money do you want to have when you are going to retire?
Let's say you want to own a PHP 5,000,000 house in 10 years' time. You already have the details about the interior and exterior aspects of the house, what pets will you be gathering in it, how big your parking garage be because you love cars, etc.
Earning at a modest PHP 10,000 a month, or PHP 120,000 a year, being on the same job for ten years would give you PHP 1,200,000, subject to raises, promotions, bonuses, etc. With that money in ten years, that is already good enough for a down payment for your dream house. And on an installment basis, you may still be able to pay off the balance in no time.
"So you're telling me I'm not going to spend every cent of my salary and just save it for ten years?"
Of course not. You don't want to be the most frugal guy in your workplace because you are obsessed with saving all your income and live way below your means, do you? On top of that, you'll never know what would happen between those times that you could use up your savings - hospitalizations, accidents, contributions to help a friend. Is it even possible not to use up even just a peso of your income? Besides, do you think your 5-million Peso house would still be worth the same for ten years? I don't really think so.
I don't think anyone has ever done it for a long period of time. If there is anyone, please do let me know.
Anyway, if you're going to save up for your ambitions in life, I suggest you do it the right way. Saving it in the bank is OK, but relying on the bank for your long-term goals is not a very good investment. Banks give you a very low less than 1% interest a year, still subject to withholding tax, and subject to be eaten by this monster we call inflation.
With around 5% inflation rate, your savings would continue to lose its value overtime.
And then one day this financial adviser suggests you go into this investment plan that gives potentially high returns and helps you achieve your house sooner, with a better appreciation of the value of your money as the years go by. But then you make objections like "I don't have the money to invest because my salary is not enough to do so", or "I'll start saving next year. Perhaps I can get a higher-paying job than where I am right now."
Friend, it's not a question of how much you need to earn so you can invest. It's all a matter of faithfully investing for that goal, no matter how much you can contribute for your future. Income is never a measure of real wealth. Remember, investment is about meeting a certain goal in the future through money working for you. It's not always about getting more money in the future.
If you wait for the right time to come, and that time would be when you realized that you haven't hit your goal yet, you will end up wondering where your money had gone that could have contributed to achieving such goal.
Bo Sanchez would value this principle as mentioned in his book:
When you're still starting out in your job, when your salary is still small, when your money is still very scarce - that's the perfect time to invest. Never wait and say "I'll invest when things are much better... Because from experience, that will never happen"
Friend, time is of the essence.
If you haven't started going into investing, what's your excuse?
Face facts. No matter what situation you are in right now, it is never too late to start now.
Because the best time to start investing for your goals - and for your future - was only yesterday.
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