redeswaq

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Light + Saber = Lightsaber

I'm more of the place and forget kind of guy as I still have my day job which takes up most of my time at the moment.

If I understand it correctly, my options are Mutual funds, ETFs and long term investments in stocks?

Thats good nkapag start ka na! Starting is always the hardest part. Well, i dont know your personal situation so feel free to ask us any financial planning related stuff for we are happy to help. Ang number one usually na advice ko for a beginner is to have a budget every month at the beginning of the month para alam mo where your money is going. I've been tracking mine since 2014 and i can tell you how much it helps me in my finances. I use spreadsheet to generate a budget, track expenses and my networth. Nkaka encourage looking how you become better with money as the year goes on. You do not have to compare your financial situation to others, you can only compare yourself to your past self and make necessary adjustment (kaya ita track mo sya sa spreadsheet). Grabeh, a budget is so powerful, it can change your life for the better.

 

Having some sort of savings in a bank is a good thing for short term needs or for emergency(lahat tyo nkakaranas ng emergency situation kung saan kailangang kailangan mo ng pera kya maigi na may pera ka sa bangko when that happens). Ang rule of thumb na gamit ng marami for initial emergency fund is $500 to $ 1,000 kung nkatira sa abroad. Sa Pinas di ko sure ang rule of thumb how much ang usual. Maybe this community can share some ideas.

 

Once meron ka nang na alot na money for your living expenses, at napunuan mo na yung initial pang emergency at may natira pa sa sweldo mo, ibayad mo sa consumer debt e.g. credit card or other personal loan. There's no point investing your money that can earn 8-12% per annum kung nagbabayad ka ng credit card with interest of 20-25%. Pay your debts in full(except mortgage syempre kasi mahirap bayaran in full yun kasi sobrang laki).

 

Next once bayad mo na lahat ng utang mo, punuan mo yung initial emergency fund, at palakihin mo sya na enough na para mabuhay ka for 3 to 6 months just in case mawalan ka ng trabaho.

 

Then start investing in mutual fund or ETF (this is my preferred investment vehicle if real estate investing or starting your own business is not for you).

 

Yan lng muna masa suggest ko, work muna ulit

I generally have no loans to pay at the moment, very minimal expenses. Been able to save 10,000 monthly in my savings for the past 2 years. Pero I feel nasasayang ko yung potential if sa bank lang siya nakalagay.

What book would you people recommend for starters?

Congrats sir.

Reading your and Johann's insights was very informative for me. Gusto ko rin sana mag invest for my retirement but don't know where to start, so far I only have a savings account that's been sleeping for a year now at the bank.

Munggo