Getting Started with Investing for Your Family’s Future

By: Crown Asia
Getting Started with Investing for your Familys Future

With uncertainties pilling up in front of everyone, arming your family’s future is not an option but a necessity. The pandemic revealed to many Filipinos how important it is to secure the needs of each member of the family not just to save them from unwarranted risks but also to save yourself from worries and fears. Financial security in the family must be a top priority since this aspect help to ensure the success of other aspects like health, shelter, and food security in the family. The idea of taking risks and saving up one’s hard-earned money may be overwhelming at first, but this feeling does not outweigh the regret or anxiety that one may feel when there is a dire need for financial resources and you have nothing up your sleeves.

photo of a family having breakfast

It is understandable for one to feel pressured when getting started with investing in the family’s future. The important thing is to get started as early as one can because the saying “as time flies, money runs” is not a tell-tale. The goal is to set the direction where the money will run. Will you allow it to run toward you or away from you? Will it run fast and fierce or slowly but surely? Or maybe save up for a future purchase like a car or a house and lot for sale?

Your choices today will set the course of your future financial endeavors.

Here are some of the ways to help you start investing for the family’s future:

Plan ahead

The best way to equip yourself with this exhilarating journey is to plan ahead. Keep in mind that mental notes will only take you a few steps ahead. When planning for financial goals, writing is a must to ensure the consistency of your plans. List down your short-term financial goals as well as the long ones such as investing in a house and lot for sale. This will help in identifying what to prioritize first. Carefully mapping out financial goals help you to clearly see where you are heading to.

photo of an office stationary set

Involving each family member in the planning is also tantamount to the success of your financial goal. Since they are likely to be involved with the adjustments in expenses, they should be part of the process so it will be a collective effort. Any family member can remind each of you to do your part. Truly, there is strength in numbers.

Identify the source of income and allocate your financial resources

Having an attainable financial goal for your family ensures a stable source of income. It will be hard to consistently save when one does not know what (or how much) will he expect on a quarterly or monthly basis. Sources of income may be from a job, a business, or both.

photo of a jar of coins

When the source of income is already identified, it is easier to allocate your financial resources. A family budget helps save and spend wisely. The key, just like in planning, is to list down all the expenses that you will have to pay for the month. This involves payment for utility bills, groceries, shopping, and health and hygiene. It is also important to allocate some for unforeseen expenses and emergency funds.

As the expenses are quantified, it will be easier to set the amount of money that you will be saving. The goal is for you to have a non-negotiable amount, meaning that this should be religiously followed. Although some use the 70:30 rule (70% of your income is for your needs and wants while the 30%is for savings, investments, and emergency funds), the ratio still depends on your life circumstances.

Remember that the key to saving is to save before you spend and spend less than you can earn.

Review your other financial liabilities

Outstanding debts are one of the major reasons why some people find it hard to allocate for savings and investments. Instead of putting the money inside these growing baskets, the money dissolves because of interest. A three-month worth of interest is already a huge loss to your savings and investment journey. It would be better to clear out the outstanding debts as early as possible to facilitate a clear investment journey.

Calculated risks are worth your time and money

Though placing your money in a savings account helps, it does not facilitate impressive financial growth. It may increase value over time, but the gap between savings and investments in terms of how much your money will grow is wide. Savings are made to have extra funds for emergencies or anything that is considered an immediate need. One can save money to buy a book or a pair of shorts. However, investments are made for long-term plans. A person invests his money to buy stocks, bonds, or mutual funds, as well as house and lot for sale real estate properties, expecting to gain something at a certain period. Unlike savings, the purpose of investment is to allow your money to grow exponentially.

photo of a person couting dollar bills

In terms of risks, investments have higher ones compared to savings. In investments, your money is subjected to market volatility, meaning that changes in the economy, either small or big, can affect its value. Savings only offer minimal risks and accounts are usually insured by the bank.

Investment trends today

As more Filipinos spot the wonders of investments, it gains its popularity today. Some examples are lending and ownership investments. In lending investments, companies issue debt obligations where lenders pay interest. Though the profit is low, the risk is also minimum. Meanwhile, in ownership investments, a person can own items like stocks or house and lot for sale real estate properties that ideally value over time. This type of investment is high-risk but is truly profitable.

photo of a man looking at a graph

In these times, people turn to real estate investment since the appreciation value is truly promising. To add more, people rent their condos and houses because the income is passive but is fast. RFO homes are also sold at in fast pace because of their benefits which are mainly for convenience and safety.

Real estate investment may be high-end, but it always hits a bull’s eye.

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