Tuesday, May 3, 2011

The High Cost of Waiting

My friend asked me how to invest through mutual funds. I explained to him how mutual funds work, the pros and cons and some few reminders. I gave him a mutual fund account opening form hoping that he will act as soon as possible.

I waited for quite some time and realized that my friend lacks decisiveness. He cannot act as soon as he can.

He knows that investing in mutual fund is good. He knows that it can bring him financial freedom. But he still waited.

I talked to him last April 11, 2011. If he invested shortly after April 11, example April 12, then his money should have grown by 1.8% (growth from April 12, 2011 to April 29, 2011). More than what banks offer in a year.

Do you know that banks offer an average of 0.65% per annum?

Investing is not that hard. It’s actually fun seeing your money grow.

For investor-wanna be’s:

  1. Decide as fast as you can.
  2. Have the courage to act as fast as you can decide.
  3. Have a long-term goal for your investment.
  4. Don’t wait for tomorrow, you might not have one.
  5. Get along with people who will teach you how.
  6. Manage your finances. Live way below your means.
  7. Have time allotted for personal finance.
  8. Manage your debt. As much as possible don’t accumulate debt.
  9. Investing is not a substitute for debt.
  10. Enjoy life.

~Till then.

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