Freeman Cebu Business

Invest while you’re young

TRADE FORUM - Chris Malazarte - The Freeman

“Rejoice, O young man, in thy youth, and let thy heart cheer thee in the days of thy youth, and walk in the ways of thy heart, and in the sight of thine eyes; but know thou, that for all these things God will bring thee into judgment.” thus, says the Good Book.

At the start of a person’s productive life, usually after college, or in their early 20s, the thought or the discussion of investing is for most of them, boring. It’s because, when they start to make their own money, what usually comes to mind is to indulge in their own whims – parties, gadgets, signature clothes, or maybe a cool car. This is the stage of “Forever Young” mentality like as if they have all the time in the world. Then comes the lure and convenience of credit cards and quick loans slowly leading them to their “debt knells.”

To enjoy life while you’re young is not a bad thing. Your new-found freedom, your immense energy, should be spent in the things they love to do. It’s a privilege to enjoy. But age will catch up with them. And things will never be the same once they get married and start to raise their own families. And when young people start to live in debt, the chances of investing becomes more elusive. Instead of thinking about growing their money, they work like a horse in order to get out of the credit card nightmare that haunts them even in the bright of day. Consumer debt kills the enterprising spirit of our young people. 

Consumer debt also deprives young people to own houses. If you’re one of those young people who have a record of past dues or unpaid credit card bills, don’t ever think of applying a housing loan even with your favorite bank. The chances of getting your housing loan approved is not only slim but nil. And sometime in the future you will have to pay the price for all the squandering you made out of your credit card in order to serve your own caprice and ego-tripping.

I don’t wish to sound like your mom or dad. But as a parent, I can relate the ordeal I went through with credit cards  that I’m both fascinated and repulsed by the fact that for a small thing like your plastic IOU, it can actually make your life easier and yet have the power to ruin your future. What I’m trying to say is that, while you’re young, make the most out of your youth by keeping something for yourself by avoiding to spend more than what you earn.

While at your productive age, invest now. Buy a home while you can afford it. A little and short sacrifice today can make a huge and long term difference in your life. Especially at this time that our economy is getting better and better, your money has the potential to grow twice five to ten years down the road.

You may ask, what do you think young people should invest?

While stocks are the most attractive investment nowadays, I would not suggest the idea of getting into it for now. They should think first of their long term security than the short term gains. Therefore, they can always start to put their money in safer investments such as insurance. And if you’re the type who wants to see a more concrete form of investment, then real estate is the way to go.

If you’re young and are living with your parents, start buying small parcels of land so by the time you need to build your own house, you can little by little put up the kind of house you want for your family. Real estate values are also increasing every year. And with a growing economy, you can expect that prices of real estate will definitely be higher in the years to come. Thus, real estate can be real surprising money-wise by the time you resell it or have it rented out.

There are other ventures that young people can get into. However, real estate is still the best bet if you go for a safer investment. Condominiums are the easiest choice when it comes to investing in a property. It is easy to own a condo nowadays as prices are still manageably affordable even for people working in call centers. If you’re in the BPO industry, there are many condos out there that can be acquired through Pagibig or bank financing for under 15,000 pesos a month. 



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