7 concepts you should know about investing

7 Concepts You Should Know About Investing

I recently attended the Business and Investment Opportunity Forum conducted by Primavera Residences together with its partner bank BPI Family Savings Bank

It proved to be a very productive and enlightening few hours for me

The forum which is the first of a series, is aptly titled SOAR or Sustainable Opportunities and Advocacies in the Regions

One of the topics discussed during the forum is something each and everyone of us should be concerning ourselves — INVESTMENT

The inspiring talk conducted by Louis Sidney “Mark” T

Capanzana the Investment Counselor/ Trust Officer of BPI-Cagayan de Oro, was full of eye-opening ideas that made me alternately scratch my chin in deep thought and examine my investments and finances right then and there

Here, I’ll be sharing with you 7 key points that Mark discussed

Hopefully this will hit a chord inside you and propel you to take some actions too

Concept No


You can’t really grow something that you haven’t really identified yet, right? Or as the speaker puts it, “you can only grow the things that you measure

That being said, the first thing you need to do if you want to grow your money is to examine your current financial situation

As a tidbit of information, did you know that the average Filipino only has P6,785 worth of savings? And the sad part is, only 2 out of 10 Filipinos actually have money in the bank

To remedy this situation, we should take to heart this formula:

Income – savings = expenses

Remember to pay yourself first before you pay the bills

Concept No


Most people don’t really give a lot of thought about investing, and saving is often mistaken as a form of investing

Well, it’s not

Saving is just like putting your money inside a piggy bank and leaving it there for a period of time

  Investing is a totally different story altogether

It is making your money work even harder, and letting it grow bigger and bigger in the process

Take for example putting your money in time deposit versus in a bond fund

The interest for time deposit would be at 0

75%, while for bond fund, it’s at 4


See the big difference?

Concept No


As Mark describes it, inflation is like running on a conveyor belt

The prices of commodities increase so you have to make more money

Your money should be growing faster than the prices can increase, It should be outrunning inflation and kicking it in the gut

Concept No


Just as each person has a unique personality, so does our own individual investment personalities differ

Based on a little quiz Mark gave to the attendees, it turns out that I have a moderately aggressive investment personality

And I have to agree on that

Whatever your investment personality is, there is a set of investments suited for you

Find one that suits you best

There is no one-size-fits-all for investments

If you know the kind of risks that are suited to you, then you will be able to sleep easier at night and feel better with your choices

After all, our peace of mind is something we should always factor in on our decisions

Concept No


The higher the risks, the higher the return

Which one should you go after? Remember, the high-risk investments aren’t for the faint of heart

Based on your personality, you could focus on the types of investments that are better suited for you

Take time to read up and research

Better yet, talk to an investment counselor like Mark

It is also advisable that you mix up your investment options a little

Like the cliché goes, never put all your eggs in a single basket

Concept No


While some people insist that investment is all about timing, our speaker begs to disagree

We shouldn’t just rely on timing

The important thing is to start early and to do it consistently

As an example, your 100 pesos each month could become 1 million in 40 years, when invested properly

Place it in the same investment for 30 years and you’ll get only 300,000

Bottomline is, it’s not timing that is important, but rather, it is the length of time

So if you’re asking when is the best time to invest, the answer is: YESTERDAY

And finally, the last concept

Concept No


Investment isn’t just a one-time thing

It’s something that should be part of our lives

Investment is something that a lot of young people sweep to the backs of their minds and label as “FOR LATER”

But the earlier we jump into this bandwagon, the better

Financial Management seminars can be quite costly, but Primavera and BPI Family Savings Bank were generous enough to impart these knowledge to us for free

You should grab this chance too and let it help you carve better plans for the future

Find out more about the upcoming investment and business opportunity programs of Primavera Residences