Finding success through investing isn’t just about going from rags to riches or building enormous wealth overnight. In fact, those incredible stories are few and far between.
Subtle but powerful changes, like reaching your goals over time and developing good money habits, can also make investing worthwhile.
We asked individuals how investing changed their lives, and here are their stories.
Watch the full episode here.
A new perspective on the value of money
“Honestly, mas naging kuripot ako,” said Jonas, a systems and integration officer and real estate investor, when asked about the impact of investing.
“When you invest in something as big-ticket as real estate, you find some [other] things frivolous na,” he added.
Jonas recalled how he was willing to spend around P6 million on a condo unit that may grow in value, but he still doesn’t want to splurge on small things like expensive coffee or restaurant dinners.
Knowing when to save or splurge takes discipline and a good understanding of your priorities. Small luxuries aren’t always bad if you can afford them, but it’s also wise to think long-term and allocate money to things that matter most to you.
Asked about the biggest investing lesson he has learned, Jonas answered, “It’s okay to splurge big sums for [things] that you think can keep their value or grow, and limit your expenditures for things that don’t grow in value.”
Developing good habits
Giselle, a researcher, said investing allowed her to be more disciplined and helped build a routine for her finances. She follows this routine by checking and adding to her investments manually instead of choosing to automate those decisions.
“I prefer to be the one to manually do it just so I understand where my money is going and how my investments are performing,” Giselle noted.
Sharing her advice to new investors, Giselle said, “Definitely do not pull out your investments early. Keep them there as long as you can.”
To keep from withdrawing from your investments too early, it’s important to practice patience, avoid emotional investing, and build an emergency fund that can help you through a rainy day.
Peace of mind
Tet, an IT officer, shared how a difficult period in her personal life became the turning point for improving her financial life.
Three of her close family members got sick and the event made her realize the importance of preparing for unexpected negative incidents.
“[Investing] changed my life a lot in that there is less worry about financial matters,” said Tet.
She noted that investing allowed her to help her family and even support the educational needs of their household helpers.
According to Tet, spending on something special for her loved ones doesn’t lead to guilt or worry because she has already allocated money for that purpose.
Setting aside money instead of simply spending it doesn’t take away joy, said Tet. She added that it is all about balancing the joy of spending money on the things you want with the joy of building your wealth over time.
