Many people believe that investing is only for the wealthy—something you do once you’ve saved up a large amount of money. But according to Genesis Kelly Lontoc, a Registered Financial Planner, who shared his insights with Financial Adviser PH, this is a myth that keeps people from building real wealth.
“The choice of investment will depend on the clear goal, risk profile, and time horizon of each individual,” Lontoc explains.
This means that no matter how much you earn, there’s an investment option that can work for you—as long as you take the right steps.
Step 1: Save Before You Invest
Before putting money into investments, build an emergency fund. This should cover 6 to 12 months of expenses, ensuring you don’t have to pull money out of your investments in case of an emergency.
“The first step in the 20% component is to save. Savings support future consumption,” says Lontoc.
Think of it as your financial safety net before you start taking risks.
Step 2: Start Small and Be Consistent
You don’t need millions to invest. In fact, many investment options in the Philippines allow you to start with as little as P1,000 to P5,000. The key is consistency—invest a small amount regularly and let compounding work in your favor.
“Investments can help enhance purchasing power over time if earnings growth outpaces the inflation rate,” Lontoc adds.
Step 3: Choose the Right Investment for You
Your investment choice should align with your goals, risk tolerance, and time horizon. Some beginner-friendly options include:
Mutual Funds or UITFs – Professionally managed funds that require minimal knowledge to start.
Stocks – A great option for long-term growth, but requires research and patience.
Real Estate – A good long-term investment if you have more capital.
The Bottom Line
Investing isn’t about how much you have—it’s about starting with what you can and growing from there. The sooner you begin, the more time your money has to grow. Stop waiting—start investing today.
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