Wednesday, 17 June 2015

3rd Newbie Lesson

We are running on our third lessons of the newbie mentoring program.  Here is the link for the video .

I believe that you already checked your financial standing and continuously monitoring monthly budget and buckets allocation. It will take time to be discipline in monitoring your monthly cash inflows and outflows.

We are going to look at the remaining three foundation of money skills:

You can move to invest it level once you have built your emergency funds, secure health and life insurance and there is an overflowing cash.

Again secure yourself first, check with your employer the health benefits and insurance protection, if you are an OFW, renew the OWWA and  Philhealth membership. If you are planning to buy a dream house then it is wise to  include PAGIBIG funds in your monthly budget.

I believe that you are set to choose the financial instrument that you might want to invest in

Few newbie questions;

1.      When to start investing? 

2.      How much capital needed to invest or set aside monthly?

3.      How to start?


1.      NOW – The earlier you start, the better. Think of the power of compounding or the rule of 72. Here is the link for deeper explanation;

2.      The answer to this question is also a question: How much excess cash left at the month end?

Many banking institutions, mutual fund companies, investment banks, brokerage institutions offer 5000 as an initial capital. You can start opening an account for as low as 5000 pesos and consistently add monthly.

For mutual fund companies;

  • ATRKE Alpha and Equity Opportunity Fund
  • First Metro Save and Learn Equity Fund
  • Philam Strategic Growth Fund
  • Sunlife Prosperity Philippine Equity Fund

For stock brokerage firms;
  • First Metro Sec
  • Philstocks
  • Col Financial
  • BPI Trade

3.   You need to study, research, and assess the financial instruments that will be suitable to your time and commitment as well as your age and risk appetite.

If you are newbie and zero knowledge then mutual funds will be a better choice. You don’t need to worry about managing your portfolio because the professional fund managers will take charge of growing your money. A service charge or fee will be deducted from your investment.

Inspiring real life sample from Mutual Fund King, Alfonso Gonzales;

If you are a person who is young, risk taker,  and willing to learn more about the way fund managers invest your money,  then you might want to open a stock brokerage account. If the stock market will be your chosen field ,then take time to study before plunging into it.

Inspiring 100% gains from Newbie Mentor;

The important foundation of money skills is investing. You are investing because you are preparing for a future definite event such as your retirement.

For the upcoming newbie lessons, I will discuss how the stock market works and how to pick stocks for long term.

Sincerely yours,

Jonathan Ruiz

P.S. If you are looking for an app in Google for monitoring your stocks portfolio, here is the link;

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