Thursday, November 04, 2010
Preparation before Investing
Filipinos now are not anymore ignorant on investing. They read business newspapers, blogs and browse finance websites.
But what is available in the print or new media are mostly written for western investors and the investing instruments they offer are mostly not available or applicable to the average Filipinos.
To close the gap and promote investing for the Filipinos, this blog is now aligned to the goal of propagating awareness of the Philippine Capital Market.
As a start, Filipinos are encouraged to follow the following eternal virtues BEFORE investing:
1. Live within your means or below them.
2. Shun credit card debt.
3. Don't borrow money except for education or a house.
4. Don't start investing unless you have a 3 months reserve fund.
5. Don't borrow money to buy stocks.
6. Don't use eating money or next year's college tuition to buy stocks or equity mutual funds.
7. Invest only money you you can afford to tie up for years if not decades and that money you can afford to lose.