If I Started Investing the Moment I Started Earning, I Would Have Been a Multimillionaire Now

Time check 11:15 p.m., Tuesday.

I just got home from work. My counterpart had a focused group discussion with selected doctors. Our speaker invited bank personnel to discuss investment products to him and his wife after the lecture. Since our guest doctors had left and my counterparts and I had nothing else to do, we opted to listen to their presentations as well.

They talked about the stock market, insurance, mutual funds, auto and housing loans.

The topic was quite interesting, actually my favorite, that we talked about it even after our doctors and the bankers had left.

One was the housing loan. We are five in the group. Three have availed of a housing loan, one is planning to, while one has absolutely no plans.

Admittedly, I am the one who has no plans. I mean, no plans at the moment, so to speak.

Seven Digit Loans Scare Me -- as in!

This morning, my mother told me that she was given a residential lot by her rich sister. Since the lot was already free, she asked me if I would want to get a housing loan. My response was a sound NO.

Why?

Yes, I dream of building a beautiful house for my parents but not majority of the amount through a housing loan.

Honestly, the thought of huge interest rates is already excruciating for me -- what more of actually being enslaved by it. I do not like the idea of working for banks through loans. If I have a loan that big, I would not be able to retire from my job and pursue my passion whenever I want to.

I have shares of BDO, BPI and Metrobank in the stock market. As these banks earn from clients' loans, I earn, too. And right now, I would prefer things as that. I am THAT scared of loans.

Why Borrow When You Can Buy in CASH?

Yes, it's against the norm, but it is not IMPOSSIBLE to build a house without borrowing money.

My friend once said, "Unless you borrow, you will not be able to buy anything."

I disagree. I firmly believe that this is one of the purpose of investment -- for us not be slaves of debts.

And this came to mind. Instead of paying Php20,000 per month (estimate) as amortization, what if I invested Php20,000 per month in the stock market for TEN YEARS the moment I started earning thirteen years ago?  That was in 2013 and I was only 21 years old then.

Okay, let's do the math.

Below is a sample computation of investing Php240,000 per year (Php20,000 per month) in the stock market for ten years through a VUL starting at age 21, with a MINIMUM insurance coverage of Php1.2M if by natural death, or Php2.4M if death by accident.

Because at age 21, I have my parents as dependents, so insurance is a definite MUST. The accidental benefit rider is also very important because I work as a field man.

Policy Year	Attained Age	TOTAL PREMIUMS PAID	ILLUSTRATIVE BENEFITS
			Full Withdrawal Value			Death Benefit
			Low (4%)	Medium (8%)	High (10%)	Low	Medium	High
1	22	240,000.00	98,663.19	102,478.67	104,386.51	1,298,663.19	1,302,478.67	1,304,386.51
2	23	240,000.00	238,565.81	251,885.46	258,659.98	1,438,565.81	1,451,885.46	1,458,659.98
3	24	240,000.00	433,984.53	465,084.80	481,160.80	1,633,984.53	1,665,084.80	1,681,160.80
4	25	240,000.00	674,660.00	734,220.08	765,511.70	1,874,660.00	1,934,220.08	1,965,511.70
5	26	240,000.00	924,962.48	1,024,886.19	1,078,297.70	2,124,962.48	2,224,886.19	2,278,297.70
6	27	240,000.00	1,210,237.07	1,364,725.58	1,448,762.29	2,410,237.07	2,564,725.58	2,648,762.29
7	28	240,000.00	1,506,775.54	1,731,601.96	1,856,121.65	2,706,775.54	2,931,601.96	3,056,121.65
8	29	240,000.00	1,815,175.55	2,127,828.45	2,304,216.95	3,015,175.55	3,327,828.45	3,504,216.95
9	30	240,000.00	2,135,911.56	2,555,753.06	2,797,121.78	3,335,911.56	3,755,753.06	3,997,121.78
10	31	240,000.00	2,469,477.01	3,017,911.64	3,339,317.10	3,669,477.01	4,217,911.64	4,539,317.10
11	32	0.00	2,592,614.74	3,290,586.52	3,708,616.12	3,792,614.74	4,490,586.52	4,908,616.12
12	33	0.00	2,721,958.61	3,588,020.28	4,118,907.33	3,921,958.61	4,788,020.28	5,318,907.33
13	34	0.00	2,857,674.31	3,912,310.85	4,574,589.18	4,057,674.31	5,112,310.85	5,774,589.18
14	35	0.00	3,000,230.08	4,266,047.01	5,080,851.71	4,200,230.08	5,466,047.01	6,280,851.71
15	36	0.00	3,149,970.66	4,651,902.41	5,643,309.39	4,349,970.66	5,851,902.41	6,843,309.39
16	37	0.00	3,307,111.07	5,072,643.32	6,268,048.18	4,507,111.07	6,272,643.32	7,468,048.18
17	38	0.00	3,472,171.35	5,531,587.50	6,962,132.98	4,672,171.35	6,731,587.50	8,162,132.98
18	39	0.00	3,645,403.57	6,032,053.65	7,733,109.50	4,845,403.57	7,232,053.65	8,933,109.50
19	40	0.00	3,827,219.60	6,577,811.95	8,589,512.73	5,027,219.60	7,777,811.95	9,789,512.73
20	41	0.00	4,018,052.05	7,172,974.94	9,540,825.03	5,218,052.05	8,372,974.94	10,740,825.03
34	55	0.00	7,923,109.28	24,120,738.32	41,536,221.65	9,123,109.28	25,320,738.32	42,736,221.65
39	60	0.00	10,080,462.27	37,193,187.80	70,248,161.95	11,280,462.27	38,393,187.80	71,448,161.95
44	65	0.00	12,806,983.22	57,345,505.33	118,810,955.56	14,006,983.22	58,545,505.33	120,010,955.56
49	70	0.00	16,240,944.72	88,408,424.81	200,950,604.70	17,440,944.72	89,608,424.81	202,150,604.70
59	80	0.00	25,937,454.09	210,095,207.65	574,932,179.55	27,137,454.09	211,295,207.65	576,132,179.55

You may say that PHp20,000 every month is such a huge amount when very little is left from your salary.

Let me share with you what Robert Kiyosaki said.

 

 

"The philosophy of the rich and the poor is this:

The rich invest their money and spend what is left.

The poor spend their money and invest what is left."

 

 

 

If you want to be rich, make investment your SECOND expense. Make tithing your FIRST. Then live on what is left.

 

 

 

I Would Have Been a Multimillionaire Now

Based on the computation above, if I invested my money in the stock market through a VUL earning an interest of 10% every year, and compounded over time, I would have had Php4.5M today that I am 34.

Whew! That could have been a lot of money!

By the time I reach 40, I would have had almost Php8.5M in my investment portfolio.

What to do with Php8.4M?

I can build a simple Php2M house for my parents, and reinvest the remaining Php6M to continue growing through compounded interest and use it for my retirement when I reach 60.

Or better yet, I can retire right now with that amount and just live on the interest. But...

Right Now, I Could Only WISH that I Knew Then What I Know Now

If I did, I would not be spending time in a day job anymore. I would probably be staying at home, just chasing Pokemons while my kids are in school, and my husband is at work.

But There is Always a Reason to Trust in God's Timing

I have always believed that I am exactly where God wants me to be.

Thinking about it now, I realized that if I learned about investing thirteen years ago and started growing my wealth even before I was married, I will not know about the pain of being away from my kids on some nights because I finish work late in the evening.

My eight-year old Gaby will probably be used to seeing me everyday that she will never ask me to clear my schedule on weekends. (Yes, on Friday nights, she asks me to just stay at home for the weekend and do nothing else but be with them.)

My four-year old Elise would not question why I am unable to drive her to school at 12nn when I am able to drive Ate at 8am.

Oh, the pain of being a working mom, and this pain forces me to grow, even until today.

If I learned about investing thirteen years ago, I would not have workmates taking care of their families through getting life insurance and starting to build their retirement fund NOW.

If I learned about investing thirteen years ago, I would have not realized my talent for writing and this blog will be non-existent.

If I learned about investing thirteen years ago, I would not have developed my passion for spreading financial literacy with the dream of making it my profession someday.

If I learned about investing, I will not be receiving overwhelming messages of how I have inspired others with what I do and what I write about, which I believe is my purpose in life.

The list goes on...

And I thank God, not because I did not learn about investing thirteen years ago, but because I am exactly where He wants me to be -- taking this financial journey with you.

I Choose to have No Regrets

My post in the past was this, "I wish I knew then what I know now."

Today, it has become, "There is a reason why I learned about this just now."

And the moment I began learning about investment, I acted on it ASAP. I did not dilly dally, nor did I procrastinate.

The key to investing is simple. It's TIME. So, I urge you, now that you have learned the value of investment and how it can do so many beautiful things for your life, PLEASE start your investment journey.

Not thirteen years after.

But TODAY.

Be very blessed!


P.S. I hope you find this post helpful. And if you do, kindly click the SHARE buttons. Thanks!

Yes, You Can Earn While on Vacation

I just got home from our 5-day midyear conference at work. The first two days were all about business held at a beautiful hotel in Ortigas and then we flew all the way to Bohol, stayed at a luxurious hotel/resort for R & R starting Wednesday.

Yesterday, Thursday, was our free time. I woke up at 8am and enjoyed a sumptuous breakfast buffet with my workmates/friends from Bulacan and Marikina. Being blown away by these breathtaking place, we could not help but take a few (okay, it was a lot!) pictures of the hotel. We then strolled along the beach shore, took more photos, and had an organic ice cream and burger for AM snacks. Since our company had pre-arranged activities for us, we had a relaxing 30-minute massage by the beach for FREE!

We spent the rest of the day sharing each other's stories by the poolside (where the photo above was taken), over the buffet lunch, by the pool bar during the afternoon, and way until dinner. Since we were from different areas and we rarely see each other personally, we made the most out of that "mini reunion."

We were in an ALL EXPENSES PAID vacation. Thank you very much, Unilab.

Earn While on Vacation

Aside from being pampered and having the time to spend building relationships, I appreciated the fact that I was making money even while on vacation.

How?

My parents and I have a small business. I am in charge of the marketing, which is as easy as clicking "PROMOTE PAGE" on Facebook. I also answer queries and relay orders from customers to my parents for packaging and delivery. These are done through text messages alone.

That particular day, I exchanged messages with three old customers who were re-ordering, communicated these orders with my mother while my father brought these orders to the courier.

Spending only a few minutes on my phone, those transactions gave us a 5-digit gross sales. Wow!

Then later that afternoon, I checked my COL portfolio and my stocks had a 4-digit gain! Wow again.

Make Money Work For You

Two years ago, I was depending on a single income stream -- my salary. Every time I get a raise, so does the government (through taxes). When the bills arrive on time and the incentives came late, I find myself stressed of not knowing where to get money to pay for these bills.

To make both ends meet, I sold many of my stuff, gadgets mostly. I always sell at a loss because the value of these things depreciate over time. When I thought I was spending my money on assets thinking that a lifestyle update was necessary, I was actually buying liabilities.

Through the Truly Rich Club, I learned where to put my money and make it work for me.

In 2013, I met a professor from Davao and we started that small business with Php30,000. Since everything was divided by two, my investment capital was Php15,000 only. After a few months, we had a return of investment and that small business has grown giving us five-digit NET of income every month, with very little effort. Sixty percent of our net income is set aside and to be used as capital for future businesses.

Twenty percent of my personal income is invested in the stock market and other "income streams."

Now, I rarely feel stressed about money. Aside  from the fact that I trust God that He will meet all our needs, I have other income sources that I can depend on -- without affecting the quality of my work as an employee.

Because of my efficient and reliable team, my Tatay and Nanay, everything is on AUTOPILOT.

RECOGNIZE OPPORTUNITIES

For the past months, since I have been open about stock market investing on social media, a lot of my friends (even acquaintances) have asked me to teach them how the stock market works.

Just this week, I had workmates who are in line before me at the lunch buffet saying, "Madami ako itatanong sayo tungkol sa stock market," (I have a lot of questions for you about the stock market) or a friend of a friend sees me at the elevator and tells me, "Joan, turuan mo naman ako sa stocks." (Joan, teach me about stocks.)

For every query, I tell them what I know, how I started, even the mistakes I made along the way. But very few actually started investing.

This differentiates the committed from those who are only interested. Which category do you belong?

Back in 2013, I had no one to ask. I attended Bo Sanchez' seminar for the first time, which was about natural healing, and then he mentioned the Truly Rich Club. I googled it, signed up, and paid Php499 monthly for more than two years now. I read, learned and applied everything that was there.

Then a financially conscious individual was born.

I became hungry for more information, read more books, and attended more seminars.

Not only did I recognize doors of opportunities, I learned how to build doors of opportunities.

While my old self was thinking of a new gadget to purchase when bonus comes in, my new self is at the franchise expo in search for a new business, or talking to doctors about hospital shares, or asking for a list of foreclosed properties from different banks, or explaining to a friend his various investment options while driving him to a house call.

Make that BOLD Decision Today

Do you want to keep working for money during this time that your very young kids need you the most?

Or do you want to make money work for you so you can do meaningful work with purpose?

Think about it. If you choose the latter, I highly recommend that you join Bo Sanchez' Truly Rich Club. And when you have been blessed, I encourage that you become a blessing to others.