Have you identified your goals and purpose for growing your money?
Saving can be very difficult if one has no enthralling reason or urgent objective for doing it. But if one has a particular goal or need, the person can do everything to achieve these.
A lot of people these days have been interested about personal finance and investing in the stock market for their future. But one major common obstacle for a beginning investor is the initial money needed to open a stock trading account.
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Normally, stockbrokerage firms like COL Financial require applicants to prepare at least P5,000 in order to open an online stock trading account. The problem is, most people who are eager to start investing don’t even have savings to start with.
So if you are a student or a young professional who is really determined to start building a solid financial foundation for your future, I highly recommend that you start saving up first for your emergency fund. This should be at least 3 to 6 months’ worth of household expenses.
And assuming that you are still struggling to follow the “Pay Yourself First” adage, I am recommending some tips on how to save up for your initial P5,000 investing money and see if these can be achieved by you.
Note: These tips are for those who struggle in saving money for their first investment account.
1. Do you own a high-end smartphone? Sell it and buy a simpler one instead. If you are currently owning an iPhone or a Samsung Galaxy that you can sell for at least P20,000, it wouldn’t hurt if you settle for a much cheaper brand that costs P5,000 afterwards, right? From your smartphone sale proceeds you’ll now be able to have your P5,000 initial investment and P10,000 to keep as your emergency fund. I know you’re starting to hate me now.
2. Bring your own ‘baon’. Regardless if you are already working or still a student, bringing your owned packed lunch will save you P1,000 every month, assuming that you spend P50 per lunch during school or work days. That’s P2,000 savings per month if you used to spend P100 per day on your lunch alone. Are you ready to stop being a pa-sosyal for a while?
3. Save your coins. Saving at least P10 per working/school day can give you P200 per month. Not too big on a short-sight. But that’s P4,800 if you keep on doing that habit for two years.
4. Take a walk. If you are coming from the MRT/LRT station to your school or work and vice-versa, why don’t you just take slow-paced walks every morning and in the afternoon? Good for your health, and saves you at least P400 to P500 per month. If you do this daily, you can save up for your initial investment in one year’s time or even less.
5. Avoid that daily cup of Starbucks or Gloria Jean’s for the meantime (or forever). You’ll be able to save up for your initial investment in just 2 months or less. Make your own coffee instead. Google a recipe. It’s free.
6. Postpone all your upcoming travel plans. Even if it’s on Piso-fare promo. You’ll be able to invest right away with the money you are going to spend for your travel.
7. Do some garage sale of your old stuff and your Justin Bieber CD’s. Sell low, buy high. Whatever. 8. Stop using your credit card for now. Period. Again, these are just personal recommendations that have helped me save up for my initial investment several years ago. It may or may not work for you but you can always try.
It is not easy giving up things that make you happy and comfortable. But only by going out of your comfort zones and challenging the status quo will you be able to achieve your goals.
Are you ready now to save up for your initial P5,000?
This article first appeared on COLmeJoey.blogspot.com
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