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Investing can only multiply what you have

If we are to build a house, we need to have the proper foundation; similarly, we need to have a good financial foundation. Nearly all financial people agree that Investing is not the first priority in personal finance but rather getting your cash inflow and outflows in order, setting up that emergency fund, managing debt, getting protection and insurance before starting to invest. You can only fully focus on investing once you have the necessary safety nets for yourself for investing is a risky activity.

That is the ideal but reality on the other hand does not necessarily agree with the step by step process and to add to the complication, different people have different risk appetites as well.

Discipline, Patience and the proper mindset is important; understand that this is not a sprint but rather a marathon which can at least take a 20-30 years of journey or perhaps even more!

Developing these skills is necessary for you to be successful in your lazy investing journey. You don’t have to be an expert at it, you just have to have a solid grasp of the basics; from there you begin to build habits around it and then it becomes somewhat repetitive to the point that it’s become as easy as breathing.

I have received a lot of questions from my friends and also client/s that says “I want to invest, but I don’t have money” or “the money I have isn’t enough”… Let’s get real here; if you don’t have any income source, or if you think your income is too low, then your best move is to focus on increasing your income first!

“The worst thing you can do, is to make life decisions while you are emotional, while your heart and mind are in disagreement.” – Leon Brown

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Do you remember a time when you were weighing an important decision such as a big expense like buying a house, making financial investments, or a starting a new business? Such decisions are inherently complex, and no matter how much experience we have making them, working through the pros and cons of each choice can be overwhelming.

Our emotional reactions to these choices may be useful in directing our attention and energy toward what we feel are the most important aspects of the decision but a feeling may not be the best choice. These emotionally charged decisions may lead us to make misguided decisions or outright disastrous ones.

I’m not saying we should behave more like robots; emotions do help us in our daily decision making process as we go through life but emotions are not useful at all when investing.

Whether you prefer fundamental or technical analysis, you should always consider your own emotional state and pause – and make that emotional analysis first before making a decision as well. What usually happens when investing (whether stock market or real estate) is that we get too excited and fail to do the necessary due diligence and find yourself in a disadvantageous situation (due to getting carried away with speculation, following a guru who suddenly makes a mistake and many more).

So start investing yesterday or better yet, NOW despite your limited income. The most important thing is to build those investing habits as a start!

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The writer is an RFP® –Registered financial planner and helps people through CERTA, Inc.’s financial education programs, estate planning & investment advisory (www.certa.ph). He’s also a Real Estate Broker, author of the award-winning personal blog– www.vernongo.com; Vice Chair –www.cebucontentcreators.com.

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