How to Start Investing for Students and Beginners Philippines (GROW MONEY) | Personal Finance 2021

We’ll talk about how to start investing for beginners and students! As with all of my videos, we’ll begin with some key ideas to help make the important investing decisions. Afterwards, we’ll run through the details of most of the traditional and non traditional investing options that are available out there. This is a personal finance guide 2020.

I’ve divided personal finance into a four part framework of Budget Money, Save Money, Make Money, and Grow Money. This video covers Growing Money, where you’ll learn steps you can easily take to start making your money work for you.

📌Key Ideas
1️⃣Unlimited Options
You won’t run out of possible investments, but you can run out of money if you invest carelessly. In order to make the best possible decision, strive to define your own financial goals first. Your investing decisions will mostly depend on the goals that you set for yourself.

2️⃣Time, Risk, and Return
Time: Short term goals are usually best paired up with low-risk investments, while long term goals can If you’re going to be needing your money in a short period of time, it’s best to stay out of riskier investments.
Risk: There are risks that come with every form of investment. While it’s tempting to chase investments that give you large gains, be mindful of the greater risks associated with these. If something seems like it’s too good to be true, it probably isn’t!
Return: The rate of return of an investment is usually dependent on the time you’ll be invested, as well as the risks that come with the investment.

3️⃣Compound Interest Explained
Compound interest is one of the simplest yet most powerful concept in personal finance. It’s what allows you to grow your money at a much faster rate. The money that you invest earns you interest, which earns you more interest. Over time, the interest you earn keeps growing 🤯

4️⃣Diversification
Don’t put all your eggs in one basket, friends! Manage your risk through diversification, so if one of your investments happen to go down, you’ll still have other investments to rely on!

5️⃣Peso Cost-Averaging
No one can predict whether the market will go up or down. To put it simply, you won’t be able to time the market. The best thing you can do is to buy consistently regardless of the price and over time, the price will average out. Starting to invest with little money can be discouraging, but staying consistent will eventually pay off!

📌Traditional Investments
1️⃣Savings, Time Deposits, Money Market Funds
These are still a form of an investment even though they give lower rates of return. Opt to put your emergency fund and short-term goal funds into these accounts.

2️⃣Pag-IBIG
The Pag-IBIG MP2 is an additional savings account that’s offered to active members to provide more ways to grow their money. This is a tax-free government-backed investment with higher rates than the regular account.
➜ How to register: https://www.filipiknow.net/pag-ibig-online-registration/

3️⃣Bonds
Bonds are debt-instruments. There are two types: (1) Government-issued bonds, and (2) Corporate-issued bonds. Government bonds are relatively safer than corporate bonds.

4️⃣Stocks
Investing in stocks allows you to own shares of a company.
➜ GoTrade (Mobile App): Invest in US Stocks and ETFs for as low as $1 – by invite only (referral code: 157655) https://www.heygotrade.com/

5️⃣Mutual Funds vs UITFs
These are pooled funds with fund managers who make investing decisions on your behalf.

📌Alternative Investments
1️⃣Starting a Business

2️⃣P2P Lending Platforms
There aren’t a lot available locally and they’re quite the risky investment.

3️⃣Crowdfunding Platforms
➜ FarmOn https://community.farmon.ph/
➜ Cropital https://www.cropital.com/
➜ SeedIn https://www.seedinph.tech/register?ref=2476

4️⃣Cryptocurrencies
Investing in cryptocurrencies borders on speculation. There have been so many exciting projects and developments in the crypto space. As long as you understand what you’re investing in, strap in for a rewarding learning experience.

📌Links:
➜ Emergency Fund Calculator (u/Michael Ignacio): https://ef-calc.now.sh/
➜ Reddit r/phinvest – https://www.reddit.com/r/phinvest/wiki/faq
➜ Reddit r/personalfinance
https://www.reddit.com/r/personalfinance/wiki/teachme
https://www.reddit.com/r/personalfinance/wiki/tools

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TIMESTAMPS
00:00 Intro, Featured Comments
01:13 Overview
02:13 Level 2: Key Ideas
05:51 Level 2: Traditional Investments
12:28 Level 2: Alternative Investments
14:55 Outro

How to Start Investing for Students and Beginners (GROW MONEY) | Personal Finance Philippines 2020

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