4 Golden Rules of Investing for Beginner  

Investing does not have to be complicated.

The rule of thumb is to have discipline and the right system in order to be successful in stock investment program. Are you ready to invest and improve your personal finance? Understand and adopt these four essential guides from COL Financial to guide you along the way.

1. Invest early

The game plan in investing is to invest early. Why? Your greatest ally in investing is not just the amount of money you have invested, but the time itself. The power of compound interest is the reason why you should invest early.

Prior to investing, I have learned about my mentor who had opened a stock market account for his baby who is a few months old. He explained to me the value of investing early and making a wise financial decision. Consequently, I also opened an account for our 8-year old son Justin. So, start investing while you’re still young.

2. Invest regularly

Buy stock regularly in great companies. I put at least 5,000 to 10,000 pesos to our 2 accounts every month in a stock market. The principle of “pay yourself” is the key to consistency. After setting aside your tithes and offerings to God, put at least 20 percent of your income to your investment regularly.

Even if it as a small amount, your portfolio will grow over time when you invest regularly.

3. Invest long term

Financial goals can be classified into three: short, medium, and long-term goals. Retirement, college education fund, and building a house are some examples of long-term goals.

The advantage of investing long-term is that you will minimize the risks. For giant companies, your game plan is to buy and hold stocks for a long period of time to maximize the return.

4. Invest using diversification

Diversification simply means do not put your eggs in one basket. Make sure that your portfolio is diversified. You can buy stocks from various companies such as in food industry, mining corporation, telecommunication and banking industries, and real estate companies.

Invest in many giant companies that you think  would still be there in 10 to 20 years. Another way to diversify your investment portfolio is to invest in mutual funds.

Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. 1 Timothy 6:17, NIV


Richly blessed,

JUN AMPARO is the author of OMG! OFW’s Money is Gone: Practical Tips on How to Be Wise with Your Hard-earned Money which was featured at GMA News OnlineBeing an OFW for over a decade, he’s aware about the common financial challenges of many Overseas Filipino Workers.  

Jun is investing in mutual funds and stock market for over three- years and conducts financial literacy seminar.