Last Updated on 7 months by DIARYNIGRACIA
Most Common Investment Mistakes made by OFWs
A lot of people ask me how I became a good player in the investment industry, and I gave them all the same answer: I became a newbie.
Confusing? Sure, but that’s exactly what helped me make wise investment decisions. Being a beginner in this kind of business encouraged me to improve in many ways especially in skills and proper attitude. Despite having quite a lot of experiences, I still don’t consider myself as an investment genius – because I believe that there’s still a room for improvement. Plus, having a few investments doesn’t make me a pro. Well, at least not yet.
I suddenly remember a happening back when I was still in the Philippines. During that time, I was attending an organization conference and met a colleague. At the age of 50, he owned a total of seven condominiums. But guess what? He was troubled because he doesn’t get as much profit as he had estimated in the first place. So, I gave him a piece of advice and told him what exactly he did wrong. Long story short, he was able to salvage what was remaining and is now earning a lot more than ever.
Now, I’m sure you don’t want to make the same mistakes – which is why I will share with you the 5 Most Common Investment Mistakes made by OFWs.
- Skipping the investigation part
A lot of OFWs usually experience having a friend or a relative insisting that they join a specific investment, and sadly, some Filipinos do rely purely on hearsay. Some of them get encouraged easily whenever someone they know claims that a particular investment is profitable. But the thing is, not all they say is true.
Doing nothing as in without DUE DILIGENCE we will enter into something we don’t even know the full structure of business or investment we are into and that is a full trap to be considered, malayo sa hindi na mawala talaga ang pinag-hirapan natin.
And here are some guide questions with regards to DUE DILIGENCE that must be considered;
a. What is your profile risk? Iyong risk na kaya mong tanggapin when this investment will not work because we cannot put all our money here, our hard earned money only risk we can afford.
b. What is your benchmark? Hanggang saan ang kaya mong i-limit dito winning or loosing dapat may limit lamang tayo. Never na isasanla pa natin ang bahay at lupa natin or anumang meron tayong valuable dahil lamang sa investment na pinaniniwalaan natin.
c. How to be Diversified? Mga tanong na karamihan ay konti lamang nakaalam. Minsan nag-bigay ako ng seminar about Stock Market for OFW, minsan ito ang kasagutan sa tanong na “Paano mo masasabi na Diversified ka?”, minsan may ilang sumagot iyong pera ko naka deposit sa BPI bank, iyong iba naman pera ko sa BDO… ganito ang meaning ng iba sa Diversification. As for me wala naman ako magagawa kung ganito meaning nila ng Diversified pero sa real Financial Market, Diversified means if you are into business na in-line sa passion mo like baking, photography etc, may cash investment ka, may Stocks Investment ka, Insurance etc. eto iyon.
- Being an investment addict
For a beginner, this is just a no-no. You need to focus on your investment to fully understand how it works and how it can make a profit for you. It is advisable that you do it one at a time, and get a few more investments later on once you get the hang of it. Meron lamang tayo dito na dapat Asset Allocation na tinatawag, iyong kakayanan lamang natin ang ilalagay sa isang investment na bago lamang natin nalamang or pinag-aaralan not “all-in”, a portion of our allocated amount for investment will be good enough.
3. Putting your money in one basket.
You should learn to be diversified. Sure, you need to save money, but don’t you want it to grow as well? Then, you should have some equities, tangible assets, properties, emergency fund, and retirement fund.
Seeing your hard-earned money grow through your investment is one of the most satisfying feelings in the world. I can’t disagree with that. But we need to control ourselves with overspending on our investment especially when we have just begun. Tipong nag-shopping ka ng nag-shopping without knowing those brands if kung tatagal nga ang quality nito or hindi.
Since we still don’t know the world of investment like the back of our hands, it is better if we will be careful with the amount we use. We can start by putting in a small amount and add more as time goes by, as a safer option in every tool of investment na gagamitin natin in order to be diversified.
- Failing to create a good connection.
In life, we are given millions of chances to establish a harmonious relationship with a lot of people. If you know someone who’s good at handling money, why not befriend him/her and ask for some tips that you can use to improve your skills?
Not only that you can get free tips, but you can also have an instant consultant if you are about to make a big financial decision.
There are so much connection we can make lalo na ngayong level- up ang communication, gawin nating tool of leverage ang smartphone natin and most specially our technology, like example my Blog one of so many blogs lamang ito na makakatulong about helping our wealth and life being OFW and kaya ito nakarating sa inyo because of someone share it to you and thru our latest form of technology. So be thankful for everything and let us take this big opportunity to widen up our connections and learnings. If you will consider my blog na makakatulong sa inyo, I am thankful enough and let me tell you na pag-bubutihin ko pa ito so stay tune lang.
I would say here, I am not trying to be a guru here but someone who studies and learned all of the sides of Financial Market from different investment side like Bank Deposits, Stock Market, Mutual Funds, Insurance and other investment instruments with certifications and the happiest side is that THIS IS ALL FOR FREE here in my blog.
- Not setting a financial goal.
Every OFW know that their jobs are only good for two to three years unless their employer has decided to renew their contracts. Not to mention that every country has its own issue, so it is good to be prepared beforehand. Ang pera dapat lang talaga natin na iinvest is yung perang kaya lamang nating mawala din. I learned this in a very hard way but because your priority is your family we need to prioritize our family of course.
Therefore, the moment you start working abroad, you should create a financial goal that can help you survive in the long run, just in case your contract isn’t renewed. We need to set aside a portion of the money.
Investment is not a one-way path or a single jump. If you’ve made up your mind to enter the investment industry, you should be cautious and prepared at the same time. Just always remember this, before making any financial decisions, you should always do your research and find out what you can about this particular investment. Lastly ask divine guidance, this helps alot!
If you like this article please share and love my page Diarynigracia Page
Questions, suggestions send me at diarynigracia @ gmail (dot) com
Other you may be interested to read and share;