Knowledge is Power
Money, for most of us, is not easy to get. We have to be smart when dealing with it. As a newbie investor, the one thing I know for sure is that there’s a lot I don’t know. As I venture into investing, on top of my to do list is RESEARCH RESEARCH RESEARCH. I have the general idea of investing, but now it’s time to learn the nitty gritty of it. I’ll start of by reading My Maid Invests in the Stock Market… And Why You Should, Too by Bo Sanchez ()I have heard a lot of good things about this book, but when it comes to my money, I refuse to rely 100% on the interweb. I did my own reading and and will now share my thoughts with you. I also encourage you to do your own reading and let me know what you think in the comment section.
This book is very easy to read for investing newbies like me. Your head won’t spin with all the technical terms you would expect from an investment book.
The major takeaways are:
Investing is NOT a Get Rick Quick scheme
So if you’re expecting to retire by next year, then your in dreamland kiddo. Investing over time has a better ROI (return on investment) than parking your money in a savings account at your local bank, but this takes time. Years, decades kind of time not months especially not days.
Consistency is the name of the game
Money Cost Averaging a.k.a Peso Cost Averaging is the way to go. Even if you invest a small amount, over time, you will get something significant. It does not matter what the state of the market is, whether stocks are on a high or low, as long as you buy stocks from good companies. Consistency is key and to be successful in investing is to play the long game. The maids (house helpers) in the book invest around 2,000 pesos a month, which may not look much but since they are consistent, they are highly likely to retire pretty well-off.
Step by step. Bit by bit.
This book laid out concrete steps on how to start investing. I would rather not write them here as I feel that I would be copying the essence of the book instead of just giving the highlights and review.
I am glad I read this book because it is inspirational and instructive. The stories of people I can relate to (not already super successful, super rich individuals) inspired the budding investor in me to go for it while the concrete instructions laid out will make it easier for me to make the next steps.
What about you? Have you read this book? If not, click the link under the photo and read it for yourself. If yes, what do you think of the book? Do you have other takeaways that I missed? Please share your thoughts in the comment section.
Disclaimer: I am in no way associated with Bo Sanchez, the Truly Rich Club. What I have written here is my personal review. I am not compensated if you decide to click the link and read the book.