Tuesday, August 1, 2017

DEAR MR.AUGUST

It’s been almost a year when my heart started to beat for you; a beat of admiration and hope. Being a matured woman, I had already promised to myself not to confess my admiration to a man whatever happens, even my heart told me again and again to do so. Because of that, sometimes I felt alone and lonely not having you in my life. All I can do for now is to run to my Bestfriend – Jesus, lean on Him and say, “Lord, I really want him. Do You want him for me too?”

It’s August! Your birth month. And I prayed to my Lord to touch your eyes for you to see my blog this month. And when you read it, may you feel that this letter is for YOU.

Only YOU. Happy Birthday Dear…

My Birthday Wish for you is you may remember me when the time comes that your heart is ready to love again.

Love,

Miss Unknown Writer.

DEAR DIARY

There are nights when you just wanna quit. No one understands the pain and what your heart is going through. You’ve got no one to talk to, and no one sees the heartbreak and the tears. Sometimes you just wanna call it’s over and you wanna disappear from the world and vanish into air. There are nights when you feel so alone, that no matter how much inspiration you wanna bring into your soul, you’re relinquished, you’re totally consumed. Nights of sadness, depression, failure and isolation. Even when you say to people you are okay, deep inside you are not. There are times when the only ONE who cares for you is JESUS CHRIST.

Love,
Writer Yna
cabreraflorina.blogspot.com

ios.florinac@gmail.com

DEAR YOU-MY BESTFRIEND

What it means to be a forever kind of friend..

I don’t have a lot of friends. I don’t trust people that easily. Generally, I have two ways of making friends: either we spend so much time together for a long period and just accept “talking to you” or doing stuff with you into my daily routine of activities, or we meet for the first time and we just tell each other our entire life story and our deepest secrets. There’s no in-between. I can tell you this, though:

I’m the friend who will hold on to you no matter what.

I’m the friend who will write about you because we did something for the first time or something good happened to one of us.

I will be the friend who you will think you don’t deserve because of how much I love you, but I won’t care. You will think long and hard about how you’re going to repay me because I won’t ask for anything.

I’m the friend who will pray for you and always wish for your happiness. I will thank God every day that somehow, somewhere, you are in my life.

I will be the friend who will annoy you to death but you can’t seem to get rid of me no matter how much you kick and scream.

I’m the friend who will be by your side when everyone else leaves.

I think at some point in our acquaintance, I warned you, maybe not verbally. There may have been a time when I tried to push you away, but now that I’m attached to you like a leech, I am going be the crazy clingy friend that you will never be able to get rid off.

I’m the friend who is going to love you to the moon and back.

I’m the friend who will be with you forever.

I miss you,
Your BestFriend.
cabreraflorina.blogspot.com


PAMBIHIRANG PAG-IBIG

We’ve all been there – we’ve all screwed up and got screwed on while trying to get a shot at ‘forever.’ Should we give up at love altogether? Sometimes, that great love we’ve always been looking for, has always been just around the corner and when you finally find it, you realize it wasn’t you looking for it, it was love who found you and you’re never the same. Yes, in your messiest, God finds you which is why His pag-ibig is so pambihira!

God Bless Us..
cabreraflorina.blogspot.com

ios.florinac@gmail.com

JEFFERSON YBAŃEZ VOSOTROS

Dear TediPoi,

Happiest Birthday to this calling-oriented man. You are truly an inspiration to others, specially to me. At such a short span in the fulltime ministry, I could only imagine what you have already achieved in life. It is indeed true that when you surrender everything to God and do what He wills, you can never go wrong. Keep dreaming, keep achieving and continue to being a blessing to everyone in your life. Happy Birthday Ading : )

-ateyhang
cabreraflorina.blogspot.com
ios.florinac@gmail.com






YOU ARE NO LONGER A SLAVE OF FEAR!

How many times do I have to fear? To lock myself in a room to cure my pain? To ignore people not to be hurt? To shut my mouth to escape criticisms?

How many times do I have to fear? To run away to avoid problems? To keep secrets to avoid judgments? To quit because I can’t do it anymore?

How many times do I have to fear that I can’t do it? That I am not able? That I am not sufficient?

How many times do I have fear other people’s success and promotions? Their money flow? Envy their material possessions?

NO MORE!!! I will fear no more! I will no longer linger to fear! Because I can do it! I am able! I am sufficient!

Rise up and face everything with confidence! You are brave! You are courageous! You can do it!

God Bless Us..
cabreraflorina.blogspot.com

ios.florinac@gmail.com

HANDY TIPS BY LITEFOREX PHILIPPINES

 1.You reap what you sow: Learn more about the finance world, continue to increase your knowledge and become a competent expert. We cannot give you an example of anyone who became a millionaire just investing into the bank deposit. Different assets can be useful in different circumstances and times. Therefore, take time to explore all possible options.

2.Put trust in professionals: If you cannot be involved into investment activity for some reasons, you can entrust this task to a professional manager. Nevertheless, even in this case, it is important for you to know the basics of money management in order to find a competent manager.


3.Protect your investment against market risks. Even a very aggressive portfolio should be carefully controlled and revised from time to time. You should have at least +50% of the alternative assets to replace those, which for some reason, you find unreliable. An investor shall not expect high profits out of nothing; make a thorough investment plan, think about risk and try to avoid losses, after that you can think how to make big money.

HATERS NEVER WIN

The less you pay attention to them, the angrier they get. They thrive on that interaction because the more they attack you, the less they have to face themselves. And the minor is a very scary thing.

Haters are golden. They are obsessed about you. They watch your every move. They talk about you every single day. For free.

Think about it, do you know any hater that’s mahusay in trading? Nada.

The reason why they are not winning is because they focus on the wrong things. Winners just focus on winning. Losers focus on winners.

At the end of the day, you get what you focus on.


-Kidlat Santelmo

MISS UNIVERSE 2016 ON FINANCIAL LITERACY

Question: What are the most significant changes you have seen in the world for the last 10 years?

Answer: (1) Uncertainties in the labor market due to cost cutting and automation (2) Low savings and high debt are forcing people to work beyond age 65 (3) The high cost of college education are hurting the younger generation (4) Increasing cost of living makes it difficult for people to save for their future needs.


This is why I am part of the Global Financial Literacy Campaign!

THREE THINGS YOU SHOULD KNOW

(1)There is nothing to hold you back except you.

(2)You are limited only by your own imagination.

(3)You have to fight back through some bad days to earn the best days of your life.

“Hold fast to dreams, for if dreams die, life is a broken-winged bird that cannot fly.”

“Million dollar ideas are a dime a dozen. The determination to see the idea through, is what’s priceless.”


-Fitz Gerard Villafuerte

8 IMPORTANT FACTS ABOUT INVESTING THAT PEOPLE OFTEN FORGET

Posted by Fitz Villafuerte under Investing on May 25, 2016

These days, learning about personal finance and investment is as easy as searching online.
However, this is a double-edged sword because while information has become more accessible, not everything you’ll read on the Internet will be true or helpful.
I’ve seen websites with misleading data, people telling false stories, and the worst of them all — investment scams being shamelessly promoted online.
So how do you sort out the good from the bad? I believe it is by remembering these eight important facts about investing, and allowing them to guide you in every investing decision that you make.
1. Protection comes before investing.
All investments carry a level of risk. Most people try to avoid the risk by going for products with guaranteed returns, which more often are scams. Or they put their money in low-risk investments, and just accept the low returns.
The best way to manage investment risks is to financially protect yourself when things go south. Those who invested in the stock market in the past two years know too well that “parties” don’t last forever.
Your best tools for protection are an emergency fund, health insurance, multiple streams of income, and for the worst case scenario that you die, life insurance.
2. You need to have a financial goal.Investments are like modes of transportation — a bicycle, a car, a bus, a plane, etc. — what you take depends on where you’re going. This means your financial goals will dictate where you should invest.
A lot of people invest in what’s hot and trendy. They look at the news and see that the stock market is up, so they think that’s where they should put their money and forget to ask themselves if it’s really what they need to reach their goals.A friend has P200,000 that he plans to use for his wedding next year. Putting that money in the stock market is like riding a helicopter to go to a nearby mall. It’s fast and exciting, but risky. I’d rather take a car or ride a bike, or in the case of my friend, I advised him to put the money in a time deposit or a low-risk fund instead.
3. Interest rates on bank cash deposits will never beat inflation.
I’ve met people who don’t like to risk losing money so they just put their savings in the bank. Some of them are even proud of the millions they have in their time deposits.
What they don’t know is that because of inflation, they’re actually losing money by not investing. The Philippines’ average inflation rate is 5% (2000-2012), so if your time deposit is earning 4% pa, then your money is losing 1% of its value every year.
Putting your money in moderate and high-risk investments is the only way to beat inflation over the long-term. Don’t play it safe with bank cash deposits because it’s actually a sure way to lose money.
4. You cannot just copy how other people invest.
Investing is a personal task. People invest for different reasons. My financial goals are not the same as yours, which means you cannot just invest where I invest.
The best investment for you depends not only on your goals, but also on your financial capabilities, your risk tolerance, and your investment personality, among other things.
So the next time you read or someone tells you about a great investment — ask yourself first how that investment fits and complements your personal financial plan before putting money into it.
5. Constant cashflow is your investment foundation.
There are hundreds of investments out there and people waste a lot of time comparing and choosing which among those investments will give them the best returns.
My advise has always been to invest where it is convenient for them so they can go back and focus on making more money. Take advantage of your productive years and do everything you can to increase your cashflow.
That’s the reason why I spend most of my time building multiple sources of income rather than studying which investment is the best. When I have more money, I don’t have to choose at all because I can invest in all of them.
6. Your portfolio’s growth is more important than the performance of your individual investments.
Diversification is a common advise given by financial experts, but what does it really mean?
Most people simply understand this as making sure that you put your money in different types of investments. While correct, it is short-sighted because what you actually want is a robust portfolio that grows in value every year.
Your goal is not to choose investments that never go down. Rather, your goal is to create a portfolio that increases in net value year after year even if some of your individual investments go down.
7. In investing, time is more important than timing.
A lot of people like timing the market. They try to predict its behavior so they can buy low and sell high — but not only is this time consuming, it’s also easily frustrating.
Interestingly, while financial analysts don’t always agree when the market will go up or down, most of them however will agree that the longer you are in the market, the better it is for your investment.
Again, I’d rather focus on making more money than spending most of my time speculating and being a fortune teller. I put my money in stable investments with long-term growth outlook and let it grow over time — it’s less stressful.
8. Never invest in something that you don’t understand.
There’s a lot of misinformation out there when it comes to personal finance — most of them feeding on the fear or the greed of a person just to convince them to put their hard-earned money into their investment.
I’ve seen too many people getting fooled into investing on something just after being presented with some made-up statistics and fake testimonials. It’s unbelievable how these sneaky marketing strategies still work.
But you should be wiser now. Remember that ignorance is expensive, that’s why knowledge is and will always be the best investment. Learn more, keep learning — learn for life — and you’ll never be poor.


7 LESSONS THE CORPORATE WORLD TAUGHT ME ABOUT SUCCESS

Posted by Fitz Villafuerte under Life Lessons on May 18, 2016

I’ve been asked a few times if I ever regret working in the corporate world, and my answer would always be a big “No”.
Being an employee has taught me a lot of valuable lessons that continue to remain relevant in my life as an entrepreneur, seven of which I’m sharing today.
1. Do not ask and compare salaries.
It’s considered impolite to ask how much an officemate is earning.
Discussing income can cause interpersonal conflicts, and make either one feel jealous or inferior, which can affect your working relationship.
Today, I learned not to compare how much I’m earning against my peers because I’ve discovered that what really matters is I’m making more money today than I was last year.
We all have different skills, talents, and opportunities — and someone will always be earning less, and earning more than you. So instead of comparing yourself to others, simply focus on increasing your cashflow year after year.
2. There’s beauty in having a routine.
Wake up, go to the office, work, go home, and sleep — it’s a routine that I did for many years as an employee. A lot of people call this cycle the rat race, and we all want to get out of it.
But not until I quit my job and become a freelancer, and later on an entrepreneur, did I learn how important and essential having a daily routine is.
Establishing a regular daily schedule helps conserve your mental energy.
When the things you do everyday becomes a habit, you’ll need less time planning your day, and you can focus more on executing your plan to attain your goals.

3. Learn how to deal with different kinds of people.

You can choose where you work, but you cannot choose who you’ll work with.
And like most of you, I’ve had my share of weird colleagues, gossip-loving officemates, arrogant bosses, and many other personalities.
The corporate world is a social environment and whether you like it or not, you will need to learn how to deal with different characters, and find a way to work with them effectively.
The people skills I learned in those years has definitely helped me in facing the diverse personalities of clients, suppliers, and peers that I meet and work with regularly.

4. Cash is king.

“Cash is king” is a cliche in the business world. It refers to the importance of cash flow, and to survive you need to keep the profits high and the expenses low.
Occasionally, our boss would ask us to share ideas we may have for the company. And in those moments, I understood that what he was really asking from us are suggestions on how the company can make or save more money.
Today, I’ve become more aware of the things I do, and avoid wasting time on doing mundane stuff. If it will not help me make or save money, then it’s not worth spending my “working time”.
5. Your value depends on the problems you can solve.
In the corporate world, those who often get promoted are not the ones who work hard, but those who have shown great ability to solve problems and handle issues that arise in the company.
You may not see your supervisor or manager physically working all the time, but they earn more than you because they are efficient at avoiding, handling, and fixing problems.
And that’s why whenever I’m putting up a business or deciding if I want to pursue a project, the first thing I ask is what problem will it solve for the customer. When you become a solutions provider, the money will follow.
6. You cannot improve what you don’t measure.
I hated making job reports back then because it’s a long and boring task. But I realized later on that those are important not just for the company, but for my self-enhancement as well.
Those reports allowed me to objectively measure my output, and when I compare them to my past performance, it allowed me to see areas where I can improve in my work.
Today, monitoring metrics such as personal income, monthly expenses, annual net worth, and many others has helped me improve my finances. And there are other things I also measure that helps me improve my personal and professional life as well.
7. Learning should never stop.
I was always excited when we have to attend training because it’s a welcome break from our daily work routine, plus we get to spend a day or two in a hotel with buffet lunch and snacks.
But why do companies regularly invest on employee training? Because it’s good for them in the long-term — you get better employees with updated skills and knowledge, and rarely do they leave after, especially if they’re happy at work.
And it’s the same for you. When you continuously learn and improve, you become better equipped and more efficient at reaching your goals and achieving success.


3 TIMES YOU THOUGHT YOU SAVED MONEY BUT ACTUALLY DIDN’T

Posted by Fitz Villafuerte under Money Saving Tips, Personal Finance on May 13, 2016

“So where are we eating lunch?” a friend asks.
“I’m okay anywhere, as long as it’s not too expensive,” another friend replies.
“How about at the food court?” I proposed. Everyone agreed and the four of us walked towards the mall’s food court.
A few meters later, we passed by an Italian restaurant which was having a 50% promo discount on their pizza.
“Hey, let’s just eat here,” one of my friends suggests.
“Yeah, we’ll save money because of the promo,” one comments and it was a unanimous decision.
An hour later, our bill was around P1100 or P275 per person — not bad for a meal at the mall. However, if you think about it, did we really save money by eating there?
If our intention was to eat there in the first place, then yes we would have saved money.
We were already set to eat at the food court, where a typical meal costs only P200 or less. But we didn’t, so in reality, we actually spent more than we could have.
Many times, we experience similar moments and believe that our choices helped us save some money but the truth is far from it.
It’s easy to make such mistakes because they often occur when we are in a positive emotional state — excitement, surprise, delight, etc. — that often clouds our logical thinking.
Just consider these three scenarios and tell me if they’re all too familiar.
Buying something that’s on SALE
A popular boutique was having a SALE and you were able to buy a pair of jeans at 30% discount. Isn’t that a bargain?
Yes, you saved money if you really needed to buy a pair of jeans. But if that was an impulsive buy, then you actually spent more than you could have.
If you bought something worth P1000 for only P700 — you did not save P300, you spent P700 — on something you don’t really need.
Don’t buy a pair of jeans and keep 100% of your money instead.
Buying a cheaper alternative
My mom was at the department store looking at some bedsheets. She saw one that she likes but she thinks it’s a bit expensive.
The saleswoman then showed her a similar, but more affordable bedsheet. Her face lit up and she decided to buy it.
She proudly showed me her purchase and said that she saved a few hundred pesos because she found a cheaper alternative to the one she likes. I asked her if we really needed new bedsheets, and she said, “Not really. But this one’s so nice, right?”
“Yes, it is,” I replied while thinking that the cheapest alternative was not to buy a bedsheet at all.
And of course, I didn’t tell her that — good thing she could afford it anyway.
Buying on deferred payment
A friend just bought a new camera and was proudly showing it to us.
“Do you know what’s great? I was able to save money because this was available at 0% interest for 6 months installment,” he announced.
Regardless if he needed a new camera or not, he didn’t really save money by deferring payment in my opinion — he just delayed the inevitable spending for several months.
Moreover, if he doesn’t make full payment on his monthly dues, then he will eventually have to pay credit card interest fees and spend more than he ought to.
I didn’t want to ruin my friend’s mood, so I kept quiet and simply admired his camera. But I do hope he reads this post.
The point is…
Don’t justify your unplanned purchases with an illogical reason that you saved money because it was on SALE or because you were able to get it on installment payments.
If you don’t need it, then don’t buy it — this is the best course of action. However, if it’s something you really want, then plan your budget and see how you can afford it.
Don’t buy unnecessary stuff on impulse because this is the shortest way to go into debt. And lastly, if you really want to save money, then the easiest way is to simply ‘pay yourself first’.


THE NEWBIE

Once upon a time, there’s a newbie in investments…
She set his first step in the stock market..
Bringing all her stuff and how to do list –
As his armor to protect himself from the wild jungle.

As she keeps on going in her journey of financial freedom…
She noticed that it is not what she expected it to be..
The journey was not smooth sailing as she thinks of –
There were many rough roads and tough times.

Sometimes you win. Sometimes you loose.
And that is you, it’s me.
They called us “the Newbie”


Let the journey begin..

NAGMAHAL,NASAKTAN,NAG-INVEST

As a Single Woman, my heart realized that the pain brought by loving someone wholeheartedly really hurts and it leaves a lot of scars mark. Being a wall flower person, that hurtful experienced always ushers my emotion to dive in a very deep level of sadness that makes me wanting to be a lone ranger forever.

Then until one night, God came into my dream and told me how much He loves me. So I woke up the next morning full of smile and full of hope.

Because of that dream, my heart came into a new realization once again, “Why not make those painful experiences be an inspiration.” As one of the popular hashtag goes, “Nagmahal, Nasaktan..” and what should I do next?

I opened my facebook one time and discovered that there are a lot of investment opportunities out there to discover and to study with. So I tried to open some pages. And I felt blessed when I opened Rampver Financials.

I tried to study first in Google what this company is offering – the Mutual Funds. Uhm risky. But there’s one more riskier – the PSE and the most ultimate one – the Forex.

As a newbie in this kind of investment trading, I had decided to give first my “Yes” to Mr.Mutual Fund of Rampver Financials.

You know what I’ve learned in Mutual Fund Investing?
-Relationship to Mr.Not Right is risky and it ends up losing..
-Relationship to Mr.Mutual Fund is risky but it ends up winning!!

Sometimes in life, we need to understand that trials will lead us to a higher level of positive mindset about our future and that’s what I have learned through Rampver Financials.

As the popular hashtag goes, “Nagmahal, Nasaktan..”

NAG-INVEST : )


And I WIN.

REX MENDOZA’S STEPS TO FINANCIAL TRANSFORMATION

1.Budget like corporations do.
2.Get out of your way to read about financial management.
3.Hang out with people who inspire you to manage your finances better.
4.Create a financial plan.


(c) Rampver Financials

ALWAYS INVEST

“Don’t spend too much. Mostly save. Always invest.”

“Sometimes you’ll buy an expensive market. Sometimes you’ll buy a cheap market. That habit formation, a percent of every paycheck, we did, and it’s the smart money move we made.”

“The truth is that all of us can become as wealthy as we decide to be. None of us is excluded from wealth. If you have the desire to receive money, whatever the amount, you have all the rights to do so. There’s no limit to how much you can earn for yourself.”

“Like the sun, money is abundantly available to all of us who truly believe that it is for us. No one is excluded.”

“Do not look back. It is better to look through the windshield rather than the rearview mirror. You can get accident that way. It’s best to move forward. And if you still have problems, they should be new ones. So what if you sold too soon a stock that kept going up and became the best performer of the year. It’s best not to compare the money you could have made if you had held on another 6 months.”

“If you don’t find a way to earn while you sleep, you’ll work until you die. That’s why investing is important. Break the poor mentality and be your own boss.”


Written By: Philequity Management

HINDI NA BALE MAGMUKHANG WALANG PERA PERO MAY IPON, HUWAG PORMA NOW PULUBI LATER

Mukhang mapera pero ang totoo, butas ang bulsa.
Mukang big time pero ang totoo, lubog sa utang.
Mamahalin ang mga gamit pero halos wala nang makain.
Iyon pala mukha lang pero hindi pala. Wow mali!
Okay lang mapagkamalang mahirap pero mapera; kaysa mukhang mapera pero mahirap lang pala!
I’m not saying that we shouldn’t look good or dress up nice, pero we should make sure that we can really afford it, that we are living within our means and not beyond it.

Hindi naman masamang mangarap, in fact, it is encouraged, pero ang mainggit at makipag-kompetensiya para lang pagtakpan ang totoong kalagayan natin, ibang usapan na iyan.
Kung lagi tayo maco-conscious sa sasabihin ng iba, kung parati nating pipiliting magpakitang gilas, kung palaging pipiliting makipagsabayan sa iba, tayo din ang mahihirapan dahil hindi naman natin keri. Gagawin lang nitong miserable at kumplikado ang buhay natin. Simple lang ang buhay,let us not complicate it. Ano ba dapat gawin para hindi puro porma lang?

GOAL SETTING…

Ano ba ang nais mong gawin?
Magpasikat at ipakita sa iba na angat ka din?
O gumanda at umangat ang buhay?
Kung sasabihin niyo sa aking gumanda at umangat, then focus on it. Huwag na tayong mag-aksaya ng panahon para intindihin pa ang ‘brand’ ng bag na gagamitin, presyo ng damit na susuotin, o pangalan ng kainan o inumin na puwedeng i-post sa social media – hindi ito parte at sukatan ng ating pag-unlad.

IF YOU CAN’T AFFORD IT, DON’T BUY IT.

Huwag umutang at huwag magpumilit bumili kung hindi kaya ng bulsa. Live within your means and adjust your lifestyle based on your income and not the other way around.

Ask yourselves:
“Nasa budget ba?”
“Importante ba ito sa buhay ko?”
Kung “oo” then go! At kung “hindi” then walk-away.

BE CONTENTED.

Don’t compare. Stop saying, “Bakit siya meron ako wala?” “Bakit siya ganoon ako hindi?” “Mabuti pa siya, sana ako din” “Lagi na lang siya paano naman ako?”

Let’s not pity ourselves. Kung matututo tayo mag-appreciate at magpahalaga, makikita natin na marami pala tayong bagay na wala ang iba which will make us FEEL GRATEFUL.

“Lord Jesus, thank You po kasi..
-nakakain ako today,
-safe ako nakauwi  pati ang mga mahal ko sa buhay,
-may bahay akong nauuwian..

SIMPLE THINGS ARE THE MOST MEANINGFUL, so..
#CherishThat.


WRITTEN BY: CHINKEE TAN

RISK OPPORTUNITY

The difference between the poor and the rich is about how they perceive risk.

For the poor, risk is something that they should avoid. For them, the lower the risk, the safer their life will be. Never knowing they put their self in a more difficult situation.

While the rich look at risk as opportunity; opportunity to grow, opportunity to become wealthy. They always go out of their comfort zone. For them, the higher the risk, the lighter and higher their life will be in the future. And of course, it is most of the time backed up with educated decision.


WRITTEN BY: KRISTINE  LEANNE SARMIENTO

DO IT!

Don’t be afraid to #StandOut and be the best version of yourself! Do it for you, do it for the people who matters most to you, do it because you know you will be able to help more, especially those who need you the most. Do it because God wants you to share those special skills He bestowed on you! Do it because the world needs more positivity! Do it because deep down you know you will feel genuine happiness and life fulfillment!


WRITTEN BY: KRISTINE LEANNE SARMIENTO

IF YOU CAN CHANGE YOUR DECISION, YOU CAN CHANGE EVERYTHING

Do you know why is it so hard to do the little things you know you can improve your life? Do you know that you are who you think you are? What you are and what you become depend on how you use your time. The billionaire and the beggar both have 24 hours a day. All are given the same amount of time everyday. You cannot stop a day or even a minute but you can control how it will be used.

MAKES VOTALITY WORK IN YOUR FAVOR

The inherent volatility of the stock market implies that an investor will attempt to actively manage his investment by timing the market” – waits for the market to fall before he invests, and when it climbs a certain point, he sells his shares, and thus he pockets short-term profits. Though this is a characteristics and familiar stock trader move, this kind of behavior can be a disadvantage for starters who do not have the adequate knowledge and expertise. “Timing the Market”could involve a wide range of sentiments and drama, and these can loom the investor’s decision-making process, for he thinks of the short-term effects instead of long-term decision, and without the proper knowledge and control, the margin of error for this kind of investor escalates – he is most likely to lose money in the process than gain a profit.

In reality, volatility can be your friend provided you make regular investments timed on certain time frames in a year. This strategy is called “Peso-Cost Averaging”, and why do we say that works? The market has been always difficult to predict, even for seasoned investors. Investing regularly is one of the proven and tested ways to smooth the rough road of volatility.

Regular monthly investing gives an investor, especially starters, the benefit of peace of mind because rather than putting a big lump sum investment then panic as the market start to drop, the investor will almost be glad for he can buy more shares the next month. If the market does climb, the investor will be glad also, for he still made profit from his previous investment. It’s a hassle-free win-win situation.

To further illustrate, let’s take a look at this scenario: Both John and Peter have P12,000 at the start of the year, and plan to put it in an equity fund. John put his money as lump sum investment (P12,000) at the start of the year, while Peter decided to invest his money in equal parts as regular, monthly investment (P1,000 per month) for the whole year.


As the table shows, Peter who decided to spread his money into regular, monthly investment has bought more shares than John who invested his money as lump sum at the start of the year. They both invested the same amount of money but the market volatility that affected John’s money for the entire year is the same volatility that made Peter acquire more shares on the run. Sounds interesting, right?

The investor then will not plan about when to buy or sell shares, and the only decision he will make the next year is whether to increase the amount of investment per month.

The practice also hits the psychological side of an investor. For he will not weary much what happens in the market, and invests at regular intervals, he now develops the precious habit of investing. The discipline of regular investing helps an investor buy more shares and build up financial base overtime and encourages him to buy even when the market is down. Especially for starters, monthly investing is particularly useful as a means of monitoring investments and developing the discipline of putting money away on a regular basis.

It will also benefit those who do not have rather large amount of funds to invest one time.

Again, as the adage goes, as an investor, it is not “timing the market”, but “the time in the market” that’s more important.


-Rampver Financials