Why Are You Investing?

Within Reach

Today I embarked on my journey towards becoming a Registered Financial Planner.

I figured – I might as well plunge head-on into the world of personal finance.  And what better way to continue my education than by formal training.

Good too that I got a semi-scholarship / discount through MoneyDoctors partner and friend, Salve Duplito, who is a finance guru herself. (thanks, Salve, and to Mr. Henry Ong, head of the RFP – Philippines program)

So my friends, in a few months, I hope to be a Registered Financial Planner.  I also want you with me on that journey so I am cooking up something that I hope will positively impact the financial future of one (or two, or three) of you. (hint, hint)

The speaker was Alijeffty Gonzales, an RFP himself.  And his topic was Investment Planning.  Incidentally, investment is my favorite topic among the topics.

But…

Beyond PSE indexes and investment vehicles, which the speaker discussed in detail, one thought recurred throughout his lecture.

That is – why are you investing?

What are you investing for?

Is it because you are told you have to?

Why don’t you enjoy your money NOW?  When your money has not yet been eroded by inflation (equivalent to almost 6.5% per annum)? (incidentally, if you keep your money in time deposits giving you a yield of 4% per annum, you are in trouble)

I was shaken.  Why indeed?

Then a statement of fact – it should be because of GOALS.  Your goals.  You should have a goal.

Your personal goals make the sacrifice of NOT enjoying your money TODAY worthwhile.

You have got to have a goal, or goals.

So, what is your goal?  Do you even know?

I was asked this question by my financial planner a few years ago.  I proceeded to list my goals, laughing at some along the way (a Disney cruise! – but I was serious about it – still am, I think).  But with my session with Alijeffty and under this “formal training”, it became clearer.

The goals make the investing – putting a huge amount of money away and not buying that darn bag or shoes or consciously not eating in expensive but reportedly divine restaurants – bearable.  It makes putting away that cash a little less painful.  When others are laughing and enjoying now, you will be okay, because you know that in the future, when you get to your dream (and you will get to your dream), you will laugh and enjoy too.

So you should have a goal (one, or two, or three, or ten).

A friend’s goal is retiring at the age of 55 with 10 million in the bank.  She religiously puts money in the stock market and mutual funds.  She recently had a financial emergency – do you think she touched her “retirement money”?

She did not.

Because she wanted to retire at 55.

With 10 million.

She knows that if she touches the money, she will not retire at age 55.  Or she will not retire with 10 million.

So investing should not be all about just making your money grow.  It is making your money grow so that it can answer a specific goal, a specific dream.

Tie investing to a dream and you will see that dream come true.

Here is a challenge.  Sit down and write down your goals – it can be a personal goal, it can be a family goal.  It can be whatever you want it to be – retiring at age 55 with 10 million in the bank, a big house, traveling, having your children go to a certain exclusive school, owning a membership in a club, having a vacation hideaway – it can be anything.

Make it as specific as you can.  Then put a time frame and an amount.

For example, traveling to Greece in May 2013, USD$10,000 (4 pax).

In the next articles, we will talk about how you can get to that dream.

Article by Issa. Photo by Danvic Briones. Copyright 2011.
Website: www.YouWantToBeRich.com
Email: issa@youwanttoberich.com

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