I’m Finally Investing in Stocks | SavingsPinay
Today allow me to share to you one of the major financial decisions I did three years ago – I started investing in stocks directly.
I have always wanted to know how stock trading works and finally I can now learn from experience.
Investing in stocks is one sure way you can build a strong financial foundation and enable yourself to earn passive income. But of course make sure you have enough savings first and you understand the risks before doing so.
You always say na gusto mo mag-invest. Lagi ka nagtatanong kung paano.
But the truth is you don’t try, you will never know. Wag puro drawing at wag puro hanggang plano na lang.
Below is the story on how I got over my fear of investing and a quick guide on how I started my stock investment as well.
Be part of the SavingsPinay Email List and Get Free Access to the SavingsPinay Resource Library
How I Got Over My Fear of Investing
I’ve been putting off investing in stocks directly ever since I started SavingsPinay.
You may remember how I mention my strong desire to invest back in my 2015 yearly goals.
In the end, I always succumb to my fears and make a ton of lame excuses why it wasn’t the right time for me to invest directly.
I guess it is the fear of the unknown and losing everything that scared me the most.
And now I finally decided to invest in the stock market directly.
So how did I get over my fear of investing?
Reason #1. Curiosity
Reading success stories online of others’ investment journey makes me eager to start my own. Seeing Pinas For Good’s First Million in Stocks, knowing Pocket Wise Pinoy’s First Two Years Investing in Stocks and updates on Frustrated Billionaire’s Experience in Investing are so inspiring for a 23-year old ordinary employee like me.
I wanted to see myself earning my first million in stocks.
I wanted to know how my first years investing will go and I wanted to update the world in my experience as an investor.
Many have shared how investing directly in stock market proved to be a wise decision and as young as I am now I wanted to share a part of that success.
I know investing on your own comes with a bigger responsibility. Unlike my current mutual fund investment it is more difficult to take care of your stock performance alone. It would be very time consuming to assess and to decide what to buy, when to sell and how much to invest in the Philippine stock market.
But I also know that if I don’t invest now, I will totally regret it later. As the famous saying goes, “The best time to start was yesterday, the next best time is NOW”.
Reason #2. Diversification
I have always wanted to diversify my investments and see how other investment vehicles will work.
No doubt opening a mutual fund is a wise decision for me because back then I’m still young and have zero idea how things work. Now that I’m older I feel mentally, emotionally and financially secured to level up my investments.
My ultimate goal in investing in stocks is to build a portfolio before age 29 that could enable me to retire in my 30’s.
And by retirement I mean choosing to work because I’m happy and not because I need to survive.
It would mean having more than enough passive income that choosing to do “active” work is now an option for me. It would mean doing what I love the most — blogging, without fear on how I’ll pay my bills. READ: How Do You Picture Your Retirement Age?
I believe in diversification especially now that I am young and able. You can’t just stop with one source of income and on one way to park your money.
You can read more about diversification in this post – Top 10 Most Important Lessons in Personal Finance. To put simply, investing in stock market is like me being my own Henry Sy. I already have a mall so why not open my own bank next? As the famous saying goes, “Never lay all your eggs in one basket”.
Reason #3. Goals
Goals play a big part in everyone’s life. It has been a habit of mine to set goals every single month and year.
As I said earlier it has always been my goal to retire young and investing in stock market is part of what I can do today to make sure that that goal will be achieved. Your goals will determine your success.
Deciding to invest in stocks is not a decision I made overnight. The interest has always been within me but it took four long years for me to have the courage and finally open an account.
I suggest checking the 8 Things You Should Before You Invest to really prepare yourself.
Other posts to help you are as follows:
Once you start thinking more about the future and about your particular goals in life you will slowly overcome your fears. What would matter most to you now are the steps you can do to reach your goals. As the saying goes, “Mind over matter”.
A Quick Guide on How I Started My Stock Investment
Investing in the Philippine Stock Market is now easier. You only need to choose your online stock broker, fund your account and apply your investment strategy. Below is a quick overview of the process I took to do online investing in stocks.
1. Choose Your Online Broker
Now, you can’t invest directly in Philippine Stock Market without having a broker. These brokers will place the buying and selling orders in the Philippine Stock Exchange on your behalf.
First Metro Securities (First Metro Sec) is an online stock broker where you can buy and trade stocks. It is part of the top 10 accredited stock brokers in the Philippines along side COL Financial, Accord Capital and BPI Securities. I honestly have no idea that First Metro Sec exists until a workmate introduced me to it. My last week was spent researching how investing in stocks is possible with First Metro Securities.
Also this blog post from Smart Pinoy Investor made me decide to pursue opening an account with First Metro Sec as a beginner. However, you can choose any broker you prefer.
Note #1. Don’t get confused by the way. I still have my mutual fund in First Metro Asset Management Inc. (FAMI) and will still continue investing with it.
Opening a First Metro Sec account is my way of diversifying my investments and learning how stock market really work. Also as the name suggests, First Metro Asset and First Metro Securities suggest are sister companies. Meaning they are part of the First Metro Investment Corporation, the investment arm of Metrobank.
2. Open your account
Just like any other investment you will be required to fill up an Account Opening Form.
You will also answer a survey to know what investor are you and what your investment objectives are.
All forms must be printed and submitted to the broker along with important requirements like IDs and proof of residency, etc. Check some first impressions I did on other mutual funds in the country today, click here.
3. Fund and invest
Once your account is created you can now start investing.
Purchasing your first stocks is like a momentous event so make sure to really know what stocks to buy.
You are not required invest monthly. How much you’re going to fund monthly after your initial deposit will depend on you too.
The money you use to fund your account will enable you to buy stocks. The more you invest, the more stocks you can buy and the more chances of earning from it.
I’m Now Officially a Stock Market Investor
I still can’t believe that I can officially a stock market investor. It excites me knowing that I can own part of a company.
Be part of its growth and co-owning tiny amount of shares from it.
Directly investing in stocks means a lot to me. I want to learn how to trade, to sell, to buy, etc. I want to be part of the system.
Final Notes from SavingsPinay
I hope this post have inspired you to act on your own journey to financial freedom as well. Investing in stocks may seem scary, confusing and complicated but it doesn’t have to be.
Just like you I was once afraid of the words “investing” and “stock market”. Just like you I thought it is only possible for the rich people to invest in stocks. Just like you I am a slave of a 9 to 6 job and wanting to escape the living within paycheck to paycheck.
Investing in stocks won’t guarantee me being rich in a week, in a month or in a year from now. But I know stock market investment is a good start. It is better to invest my money now and make money work for me — than me working for it. You can too. It’s just a matter of willpower.
Are you investing in stock market too?
Do you want to start investing in stocks?
Izza of SavingsPinay helps Filipinos bridge the financial literacy gap one content at a time by providing insights and tips on budgeting, saving, investing, side hustle and growing your net worth. Aside from this blog she also writes at www.izzaglinofull.com, a beauty and lifestyle blog for frugal Pinays and manages, www.izzagevents.com, a wedding and event business since 2011. For inquiries, topic suggestions or future collaborations email her at firstname.lastname@example.org