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Three days ago, I was having a conversation with a good friend. She is in her early 40s, a medical doctor with around 80 to 100 patients per week. Because of this, she starts working early and ends very late, almost everyday. She was telling me that she wants to start investing so that after a few years, she can have a laid-back and a more relaxed kind of life even while she is still practicing her profession.
On a Facebook page that I manage, Financial Planning For Pinoys, a 40 year old follower sent me a message saying that she wants to have a cash allowance for herself in the near future even while she is currently saving for her children who are in college.
I believe every person who has been working for a long time has this same goal -- to have money for old age.
My Visit to Anawim was an Eye Opener
With these concerns, I remembered my pilgrimage to Anawim last August 2013. Anawim is the home of the abandoned elderly located in Montalban, Rizal. Many of its residents were not always poor. Some were government employees, one was a principal of a school and another was a dentist. Yes, there were maids and laundrywomen, but they, too, were earning money then. Money which they sent to their nephews and nieces who only abandoned them in their old age.
If you are earning today, what happened to them can happen to you unless you create wealth for your old age.
Although Anawim was a very nice place to stay, I do not want to become one of its residents. I choose to become a donor instead. But how can we do this?
Build Wealth Over Time
My mentor taught me that the secret of wealth is to keep your wealth reproducing after its own kind.
Invest in paper assets now. It is the easiest way to build wealth since not everyone can start a business or buy an income-generating property.
Since we are into a long term investment, I encourage you to invest in the stock market. If you follow a simple system which I learned through the Truly Rich Club, the stock market is the best, safest and most effective way to build your wealth in your old age.
"What seems inconsequential over the short term becomes profoundly important in the long term."
If you invest Php20,000 per year, which is around Php55 per day, in the stock market at 10% interest growth per year, it becomes Php560,000 in 15 years! Even if you stop adding capital after 15 years, your money grows to Php900,000 after 5 more years, or Php1.3 million after 10 years. The longer your money stays, the higher it grows because we are talking about compounded interest.
So, whether you are in your 40s or have just started working and in your 20s, I encourage you to start investing TODAY. Create wealth for your old age. And remember that depending on your children is not a good retirement plan.
Happy investing!
Happy investing!
