12 Apr

Three Easy Ways to Become Investment-Savvy

Saving moneyEverybody is on a financial journey to a brighter future. You work hard now so you can save money and secure a future for your family. No matter where you are in this investment journey, the key to success is being informed.

Not everyone has the knack for money and investment matters. Learning the goings on of your finances, however, can only be good for your money management. With that, here are a few easy ways you can learn to be more investment-savvy.

Don’t Obsess Over the “Best” Investments

Many business and finance-related shows advise viewers to constantly be on the lookout for hot new investments. These, however, can easily turn from the ‘Next Big Thing’ to the ‘Next Big Letdown’. If you’re unsure about where to put your money, go with the tried-and-tested ones, such as a home.

In reality, smart investing is more about putting your money on things that you know will pay off, such as a house. Taking out a home loan may be an additional burden to you now, but it will yield a considerable ROI after you clear that loan and you finish paying for the house.

Always Think Long Term

Birthdays and anniversaries are the milestones you most likely look forward to. It’s not surprising then that you tend to think in annual terms when gauging your portfolios. But this can be a dangerous habit, because investments are more of a marathon rather than a sprint.

If you’re looking for the best ROI over the next 12 months, you’ll naturally lean towards the more volatile investments because these give you a better shot at substantial short-term gains. Your odds of choosing the winning investments year in and year out, however, are very slim.

A safe bet would be going for long term ones that will take much longer time to yield returns, but provides a safer bet.

Start Early

A peso today is worth more than a peso tomorrow. To be a good investor, don’t just figure out what your investment is worth today. Instead, know the total value of the investment.

For your house, for example, take out a home loan from BDO Unibank, Inc. and get help from the Home Development Mutual Fund (or Pag-IBIG Fund) to finance your purchase. The earlier you start, the earlier it’ll be for you to finish the payments, and get the home for yourself.

Investing is usually a game of chance for people. But knowing what to do can save you the trouble of worrying if your investment will tank or not.