Jay Mark Balabis
- Being worry free
Even if the market goes up or down, you don’t need to worry. The great strategy is being there on the ride for the long term. Long term means ten years or even more. I could maximize the ups and down of the economy and ride on it. Staying calm and being grateful because I start earlier is the best luxury of starting in your early 20s.
Capacity to increase more cash flow
Like it or not, chances are you have the abundance of time and energy to make more and more money. You are young and vibrant and a lot of opportunities await you to increase your cash flow which is essential in building wealth. Discovering and developing your talents at this stage is the best time to madly monetize it.
- Aggressiveness at its best
Another advantage is being aggressive. Since you start young and assuming you have a lesser responsibilities compared to a person who started a bit late, you can venture in an investment with a higher risk without that fear of losing but expecting much more on the long term. You don’t play safe, instead you risk more. I find it so odd if you don’t become aggressive if you are in your 20s right now. Seize the day, my friend, while you are young.
- Time is on your side
There is a saying that time is an ally in investing. This is true but only if you start at an early age. Wealth takes time to grow and that is what you have plenty of in your 20s: time. You can really dominate life full of hope and the belief that your financial goals will materialize.
- Simple savings is inevitable wealth
Small savings is a big money in the long run. A simple savings of 1,000 php per month is almost 1 million php in the next 20 years assuming that it is invested in something earning 12 % per annum. By the time you are in your 40s you are indeed a millionaire and give yourself another ten years and you are a multimillionaire. You are definitely in a good place compared to those who started later in their life. With a simple discipline of 1,000 pesos per month you are able to build wealth. But I believe you can invest more than a thousand pesos per month so you can build more wealth.
| MONTHLY SAVINGS | Interest | 5 Years | 10 Years | 15 Years | 20 Years | 25 Years | 30 Years | 35 Years |
| P 1000 | 12% | 97,382 | 247,855 | 513,039 | 980,385 | 1,804,007 | 3,255,511 | 5,813,557 |
- That thing called hunger
Presumably, you are still humble and that means you are hungry to learn more. Investing has a very high learning curve and your desire for learning will allow you to maximize your capacity to absorb what you need to be financially successful. Your desire to learn more will push you as well to seek for mentors that will guide you on your journey. Success is inevitable to those who are humble and hungry for more.
One the best decisions I made in my life was starting young in dealing with my finances. My hopes for a greater future are becoming clearer and more achievable. As financial guru and author Patrick O’ Shaugnessy states, “Youth is the most important advantage you will ever have, don’t squander it.” Let us not waste time and achieve more by maximizing our youthfulness. Save and Invest now!
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