What is investing?
Let me define first what “investing” means. From dictionary.com, it means “laying out money or capital in an enterprise with the expectation of profit.” It is simply means, to use your money to grow — whatever ‘investment vehicle’, where you put your money and it appreciates in value — that’s investing.
Growing up, I was taught that you can earn an income only by getting a good paying job and working. And that is exactly what all of us are doing. There is one problem: if you want more money, you have to work more hours. However, there is a limit on how many hours in a day you can work.
Of course! It is no fun to not have a leisure time to enjoy your bunch of money that you work hard for. Most of us spends our money on gadgets, shopping, and sending/spending money to their families. What happened to your bunch of money in less than a month? Gone like a ninja, and you are then again going to do the cycle: work – earn- send – spend – work. That happens every month. Are you not fed up yet?
You cannot create a duplicate of yourself to increase your working hours. Instead, you need to have an extension of yourself – your money – to work.
Imagine, while you are doing your contracted hours for your employer, or even you are sleeping, or socializing with your friends, you can also be earning money elsewhere using the ‘investment vehicles’. Your money is also making money and that maximizes your time with your family and friends and your earning potential whether or not you have receive a raise, or decide to work overtime.
Why bother investing?
It is obvious that everybody wants more money. Don’t you? People invest for sense of security, ability to afford the things whether it is a need or a want, and increase their personal freedom.
I am single. 20+ years old. Working overtime to spare an amount for investments. I dreamed a dream and it is time to plan ahead. I am a newbie. Still less than a year since I heard about these investment vehicles. I just started and I am pretty much serious to reach my goals. These are few reasons why:
- Family. My parents will get old. Who will look after them? I am going to have a family of my own. The wedding expense? I want our own house as a couple. The pregnancy? Hospital bills? Kids education? Their things? The children wants? Holidays!Not to mention, for ’emergencies’. And you will get old too, retirement! The rules have changed and is continuously changing! Nowadays, it is not easy to have your own family. You can hardly raise a child. I want 2-3 kids so better start preparing now. I plan to get married 5 years from now. By putting money in investment vehicles it is not impossible for us to live the dream and less stress especially if your partner is doing it too.
- Retirement. That one day, despite good health you withdraw from work. The question is, are you ready? Think about it, after all the responsibilities you have with your family, I guess there should not be enough left to save for retirement. The best decision is to have something allocated just for retirement alone while young and single. I realized that it is my own responsibility to plan for my retirement, for my own future. That I must not rely on State pension. By planning ahead I can ensure financial stability during my retirement. How safe our old-age pension programs over the next 30-50 years? Who knows? Retirement age is not guaranteed to everyone, most people never chieve it and others will achieve it in their 30’s, or 50’s. The days with a nice fat pension are gone… GONE! My goal is to reach financial freedom. The moment that I do not need to work to earn another penny and that I will still have enough to carry for the rest of my life.
- Travel. I have got the world’s most powerful passport. British passport holders have a visa-free access to almost 173 countries in the world either with a visa or visa-on-arrival. (Sayang naman kung hindi ko magagamit.) Though travelling could cost me. So here is another reason to save.
*Credits to the owners of the used photos.
I guess it is better to educate yourself, your family, friends, and even your partner with financial strategies because whether you like it or not, the said things are inevitable so better prepare for it.
Everyone’s circumstances are different and what applies to one person may not be right for the next. This article is not intended to provide advice or recommendation on your individual financial needs.