Diane G.

Barbado July 19, 2019

BSMA-3 FinMan4

BUILDING WEALTH THROUGH STOCK MARKET INVESTING

REACTION PAPER

I will start by a quote, “Too many people spend money they haven’t earned, to
buy things they don’t need, to impress people they don’t like.” To be honest I was one
of those “too many people” before, I buy the things I want but I don’t really need. I
asked money from my parents for my allowance but the truth was I will just buy for the
sake of having it. I was a big spender and definitely a saver but spends after.

It is true that money is part of our daily lives, we can’t live without money. So
much true that Filipinos invest their money in Grand Lotto. Out of more than One
hundred million of Filipinos, only .71% invest in stock market. With this, we can conclude
that they lack of understanding about investing, never taught comprehensively
specially to our parents or maybe they are afraid of investing their money.

I already have the background of investing and in the seminar, it encourages

me to invest in the stock market. Instead of putting my savings in my savings bank
account with a very low interest, I want to try investing in COL financial group. It was my
first time to hear this brokerage firm considering that it is the number one stockbroker in
the Philippines. Our guest speaker, Maria Dulce B. Calija, CPA, REB, discussed the three
basic laws of money; Save 10-20% of income; Investing and; Reinvest it to benefit from
the power of compounding. I learned the power of compounding interest of Rule of 71,
where it is the simplified way to determine how long on investing will take to double,
given a fixed annual rate of interest. Also discussed the GEMSS; Growing Industry;
Earnings; Management Credibility; Strong Balance Sheet and; Superior
Product/Services. In investing I can choose of which fits me better; the Stocks or the Do
it yourself and Mutual funds. In Stocks (Do it yourself) is you are the one controlling, it
needs more time monitoring and it is flexible while in the Mutual funds, professionals will
be managed, affordable and needs less time monitoring. If I were to invest, I would
choose the Mutual fund. The key things to remember why to invest in the stock market is
to take control of my future by the Peso Cost Averaging.

The first thing that I really agree on from the seminar is being retired early
preferably at the age of 45. But of course, considering that I already have millions of
money by that time from my investments. I want to travel abroad with family, open my
own business and do what ever I want to do. Without worrying financially for my future
children. Second thing is, “Time is more valuable than money. You can get more
money. But you cannot get more time”, money is just temporary yes, it is important but
time flies so fast, and the precious moments from this world is what we cannot forget
forever. Lastly is the Abundance formula, 10% is for the thite, giving back what does the
Lord gave you, because He is the reason why we are in our position right now and
others are for yourself, rewarding yourself is one of the best feeling ever, and investing it.

There are two options in life, one is enjoying now, suffer later and the second is
sacrifice now, enjoy later. It is really our own choice of what are we should prioritize.
Everything is a decision in our life, it may be small or big, and it’s our decision of what
are we right now. As a graduating student I don’t want to be liability to my parents I
want to be there great asset and it starts right now.