Fear Factor



A common sentiment I hear from people these days is that though they would very much like to invest, they are afraid to do so. They are afraid that if they invest in things like stocks, mutual funds, or pre-need plans, they will lose their money. So, they settle with the low interest rate the bank has to offer. At least it’s safe and familiar, they argue. But, will it ensure a prosperous life? Is it really safe just because it’s familiar? Let’s learn from a journey to Enchanted Kingdom.

Road Trip to EK

Let’s say you live in FARview (Fairview is in Quezon City) and would like to go to Enchanted Kingdom for a day of fun and relaxation. Ideally, the best thing to do would be to wake up early and drive there. That way, you get to spend the whole day at the park before it closes.

Will You Commute or Walk?

If you don’t have your own vehicle but still want to spend the most amount of time at the park, the next best thing would be to wake up earlier and commute.
I don’t think anyone would consider going to Enchanted Kingdom from Fairview by walking there! Not only would you arrive very, very late but I doubt you would be in good shape to enjoy all the attractions the park has to offer. Actually, there’s a very good chance you will be unable to reach the park at all due to physical exhaustion.

Reality Check

Now, regardless of the method of travel you choose, there is a realistic chance that something will go wrong like having a flat tire, an overheated radiator, or an unforeseen accident. You will either arrive at the park late or not at all. But, would you actually let these things stop you? Would you let the fear of a possible accident determine where and what places you can go to?

Our Very Own KingdomFear is not an option in investing

We all have our own vision of Enchanted Kingdom – the life we would like to have where we are free from the day-to-day worries of life. Believe it or not, the process of investing is very much like travelling to Enchanted Kingdom. There are risks involved, but would you let your fear stop you from going to the place where magic begins?

Things to Consider

1. Time – the time at which we wake up and begin the trip is the time we begin to invest to achieve our personal goals. Simply put, the earlier you start your journey, the earlier you will get to your destination. Therefore, the sooner we invest, the sooner our money can start growing for us.

2. Mode of Transportation – the vehicle we use is the kind of investment we choose – running a business and investing in stocks are like cars (fast and risky), mutual funds are like public transport (cheaper but slower) and savings accounts / time deposits are similar to walking (long and exhausting).

3. Risks– just as something can always go wrong on a trip, no investment is 100% risk free. There is always a chance that, no matter how carefully you’ve planned things out, something will go terribly wrong and mess things up. No matter how well you plan your portfolio, events outside of your control can suddenly just step in and wipe out most of your money (Example: Asian Financial Crisis of the 90’s.)

Master Your Fears

With all of that said, what can we do to eliminate or minimize whatever fear we have of investing? Well, the same way we would learn to drive a car or memorize the different routes of jeeps and buses, so must we make the effort to learn more about the investment. It is only through educating ourselves that we can master our fears and prevent them from limiting the kinds of lives and the kinds of dreams we can achieve.

 

Are you afraid to invest in things like stocks, mutual funds, or pre-need plans?

Take the time to learn so you can take away the fear.

We have a  Seminar that will help you understand these investments.

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Comments

  1. Catrina Eustaquio says

    Where is the best way to put my 20% monthly savings from my salary. As of now I have 12,000 +, and i just put it in my wallet. I don’t know where to start. Please help

  2. Joan says

    what will happen if I lose more than what I invested in? Will I go broke? or my money/investment will remain in my account?

    Example: stock A investment is 10,000 worth of shares but price dropped and I lose worth 11,500.

    Is that possible? Sorry I am a newbie in stock investing.

  3. says

    Aya, ofw ako dito sa qatar for 14 years at pinalad akong maka attend ng financial literacy seminar noong dec. 2012. at buhat noon gusto ko na talagang pumasok sa larangan ng investment kaya lang sa dami ng binasa kong mga write ups at video presentation ( including ang site mo ) naghalohalo na sa isip ko ang lahat ng binasa ko at pinanood . mas lalo ata akong naguluhan. at tulad ng karamihan iisa ang tanong paano ako mag uumpisa. i really wanted to start investing kaya umuwi ang asawa for 2 weeks to make investment. nag open sya sa FAMI, dahil sila ang best mutual fund co. ayon sa nabasa ko, ganon din COL FINANCIAL and sa BDO for a start . and until now marami pa din akong katanungan sa sarili ko kung ano ba talaga ang bagay sa akin..i always read your post, column at you tube presentation at lahat ng ito ay positive kailangan ko ng mag invest para sa retirement ko at may pera ako para dito. ang kailangan ko ay guide sa tamang desisyon.. please help.

  4. Annie says

    I have a question regarding succession of ownership of stock investments in case of an investor’s death. Is there such a thing?

  5. moneyjedi says

    Great post! According to the facts and figure I heard this morning, about 8% only of Filipinos are financially literate. Wisdom requires action.

  6. Lerizza Wu says

    Fear indeed is not an option! THANK YOU FOR sir aya for your passion of spreading financial literacy to every filipino worldwide… God bless you more!

  7. Cris de Jesus says

    Hi Aya, in case of investor’s death, pano malilipat sa asawa or anak nya yung ownership ng stocks? Thanks.

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Trackbacks

  1. […] If your magic number is the destination, your investment is the vehicle to get there. Look for an investment that will help you achieve your financial goal. But before you do that, there are things that you have to consider – like the time frame and the risks involved. (Read more about it here: Fear Factor) […]

  2. […] Most Filipinos, even though they want to invest in these instruments, are afraid to do so because they fear that they will lose their money. And because they don’t understand it, they will not invest at all! (Read more about fear of investing here: Fear Factor) […]

  3. […] There’s no such thing as a risk-free investment. This is what we have to realize in choosing the best investment for us. But does it mean that because of the risks, we will not invest at all? Like other things in life that has risks, it’s in understanding the kind of risks involved in investing will help manage our fear of investing. (Read: Fear Factor) […]

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