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November 17, 2006


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Make Investing a Habit is one of the soundest modes of becoming wealthy and rich, let me point some important pointers why this is so:
A)INVEST MORE THAN YOU SPEND. Earn more than you spend is the prelude towards building a lasting foundation of wealth but investing more than you spend will definitely lead to the golden goose that will lay a golden egg in the future days to come.
B) DO NOT TRUST MONEY BUT RATHER PUT YOUR MONEY IN A TRUST. A the dollar says: " In God we trust." this means that we cannot totally trust money but we can put our money in a trust account like Trust Indentures, Time Deposits, Mutual Funds, Treasury Bill and stocks and bonds.
C) INVEST AND MAKE IT A HABIT TO TREAT YOUR RESOURCES LIKE SEED MONEY WHICH NEEDS TO BE NURTURED WHICH WILL GROW AND WILL PROVIDE YOU FRUITS READY FOR HARVEST ONE DAY. The habit of investing money regularly is congruent to the seeds that you have sown in the field and as you fertilize and nurture it like you continuously invest your money it will grow to be like a tree one day which bear fruits ready for harvest. The more you have seed money the better because by then it will multiply by duplicity and as what might Albert Einstein have said: " The eight wonder of the world is actuarial science."
D) REGARD YOUR INVESTMENT AND MONEY AS YOUR EMPLOYEE WHERE IT WILL WORK AND EARN INTEREST FOR YOU INSTEAD OF AGAINST YOU. Investment and money should be regarded as employees because they can work wonder for you. The pragmatism that money is better than employees is really true because money does not need salary, allowances, leaves and even labor unions. The concept of making money your slave rather than your master is applied here.
E) PART OF WHAT YOUR EARN IS YOURS TO INVEST IS THE ONLY WAY TO WEALTH AND AFFLUENCE. The only way to become wealthy is to earn your resources and then invest it so that it will bear children and plenty of grand children and your interest income will multiply just like the growth of the population in this earth today.
F) INVEST YOUR MONEY AND TREAT IT AS JUST LIKE A DISBURSEMENT MADE ON YOUR FIXED EXPENSES. The concept of pay yourself first is applicable in this instance. Pay yourself first by investing your money and treat it just like you pay for your necessary bills like city services so that you will not be conscious of your investments and it will earn you income even while you are sleeping.
G) IN MAKING YOUR INVESTMENT A HABIT TREAT IT LIKE A MANURE, YOU HAVE TO SPREAD IT BY DIVERSIFICATION TO AVOID RISK AND LOW INTEREST RETURNS. When making your investment diversify it. Money invested is like a manure if it is concentrated in one sector alone it will smell while if it is invested in diversity it will lessen the risks of low returns, insolvency and interest income.
H) THE THREE STOOL FORMULA FOR WEALTH SUCCESS IS APPLICABLE- EARN MONEY, SAVE IT AND THEN MAKE IT HABIT TO INVEST. This is the only way to enter into a habitual investment. Earn it first by having a business, save it in the bank and then invest it.
I) BY THE YARD IT'S HARD TO INVEST BUT BY THE INCH IT'S CINCH. Investors or beginners must realize that there are very few rich people who started investing in a grand and material amounts. It is better to invest in small amounts for as long as it is done consistently rather than investing it big and will never materialize.
J) INVEST ALL IDLE CASH. One of the supreme rules in managing money is to invest all idle cash. Never hoard it as it will not go into the mainstreams of business and will not earn any income. Invest it in low risk venues so as to provide security.
K) MAKE IT A HABIT TO INVEST YOUR MONEY IN INSURANCE FOR YOUR LOVE ONES AND EMPLOYEES TO PROVIDE THE NECESSARY PROTECTION IN CASE OF FORTUITOUS EVENTS. Insurance will be your alter ego if by chance the almighty God will take you. It will answer for the risk of fire, death, sickness, accident, retirement and even hospital bills.
L) INVEST YOUR MONEY IN STOCKS AND BONDS AS IT WILL PROVIDE YOU THE RIGHT OF PART OWNERSHIP OF THE COMPANY INSTEAD OF MAKING THE HABIT OF PURCHASING MERELY THEIR PRODUCTS FOR CONSUMPTION. Invest and buy the ownership of companies by procuring their stocks and bonds which will afford you annual participation of the sharing of profits and stock options. Poor people are habitual spenders and consumers while rich people are habitual investors.
M) TREAT YOUR INVESTMENT JUST LIKE YOUR FRIENDS AS YOU INVEST YOU INCREASE THE NUMBER OF YOUR ALLIES WHILE IF YOU SPEND YOUR DOUGHS IT MEANS YOU ARE PARTING AND DISCARDING YOUR FRIENDS. Money and investment should be treated like your friend, the more investments you have the more friends you will have. The alternative is unthinkable.
N) INVEST YOUR MONEY ON ASSET PRODUCING INCOME AVOID OVERHEADS MERELY FOR CONSUMPTION. Rich people are smart, they only spend their money on assets that will further enhance their assets and income. One of the best ways to invest is in the real estate business because the essence of depreciation will not eat you instead its value will appreciate over the years.
O) FOLLOW THE PARABLE OF TALENTS IN THE BIBLE - THOSE WHO INVEST THEIR MONEY PROFITABLY MORE WILL BE GIVEN TO THEM. Read the Bible and follow the parable of the talents. Those who invest their money wisely and profitably more money will be given to them.
P) MONEY BEGETS MONEY AS POVERTY BEGETS MORE POVERTY. The saying that the rich are becoming richer while the poor are becoming more poorer is applicable here. The rich would invest their money, hence it will attract more money while the poverty mindset of spending more than one earns will add more to the poverty that is already there.
Q) MONEY INVESTED IS THE CAUSE AND IT'S EARNINGS AND INCOME ARE THE EFFECT. Once you invest your money in lucrative activities this will become the cause and the effect will be wealth, interest income, capital gains and gold. Money per se is not the cause, it is the effect. If you are a habitual spender then that is your cause and the effect will be insolvency.
R) HABITUAL INVESTMENT WILL CREATE COMPLEMENTARY INCOME AND RESOURCES FOR THOSE WHO CAN BUY TIME. It is not how much you have invested but how much time you are willing to wait that will determine between profit or deficit in your investment. Investment of money is but a fraction of the holistic concept the more important thing is the amount of time you have exerted. Complementary income like stock dividends, stock options to purchase, the ability to reinvest all cash dividends are complementary opportunities as one becomes a habitual investor.
S) CONTROL VARIABLE EXPENSES TO AFFORD VENUES FOR INVESTMENTS. Variable Expenses are expenses which are controllable in nature. There are so many controllable overheads like heat,light and water, donations, supplies and materials. In other words merely control some of your expenses which are controllable to afford savings and for investment intentions.
T) INVESTMENT ACTIVITIES ARE IN THE JOURNEY AND NOT IN ITS DESTINATION. One of the common blunders why investors rarely become successful because they look immediately at the investment destination that they will arrived. Businessmen would instantly fantasize that their money will earn millions of dollars in the blue chips by this month or year and when their dreams could not be met they become frustrated and withdraw all their investments. The markets could be bullish and inefficient sometimes so it takes patience and just enjoying your investment journey until it will again gain some ground.
U) IN DREAMS AND IN LOVE THERE ARE NO IMPOSSIBILITIES. If you are really determined to make an investment in real state, you will create ways to acquire and purchase one and no one can stop you. As written in the constitution a person has the right to life, property and the pursuit of happiness.
V) HABITUAL INVESTMENT DOES NOT NECESSARILY MEAN MONETARY INVESTMENTS BUT SELF ADVANCEMENT AS WELL. Self investment is always indispensable. A person who says he is too old to be educated is physically and spiritually revealing his intellectual insolvency. One of the most rewarding form of investment is in our selves whether it is an investment in education, vacation, tourism and leisure activities.
W) INVESTMENT IN ANTIQUES, PRECIOUS ARTIFACTS AND PAINTINGS ARE LUCRATIVE UNDERTAKINGS. Those who buy precious paintings from masters like Manet, Van Gogh, Rembrant will not repent. These are forms of investments where the prices are sold by the millions. In the Philippines, one painting alone done by Mr. Fernando Amorsolo would cause by the millions of pesos and if by chance you bought one of his paintings it will really make you affluent and rich.
Y) DIVERSIFY YOUR INVESTMENTS TO AVOID POSSIBLE LOW INCOMES AND EARNINGS. Do not place all your eggs in one basket alone is the wisest advice when making investment. Diversify to avoid the total risk of investment debacle. Invest in different lines, like Information Technology, Transportation and Property so that if one firm will go down let us say in transportation you still have stocks in Technology which will save your investment.
Z) INVEST AND NEVER TAKE AWAY THE PRINCIPAL AMOUNT ONLY DIVEST THE INTEREST IF THERE IS REALLY A NEED TO WITHDRAW. Do not withdraw the principal investments but rather only touch the interest earnings that you have gained. In that way even in times of real need, your principal investment will be intact so that it will again bear interest income for you in the future.
These are some of my personal views on how to effectively make investment a habit profitably.


In letter B) The sentence which started A the dollar says... it should be As the dollar says...
Letter X) which was omitted is presented here.

X) ONE WAY OF MAKING INVESTING A HABIT IS TO ALLOW YOUR COMPANY TO WITH HOLD A PORTION OF YOUR INCOME, LET US SAY 10% FOR INVESTMENT IN STOCKS AND MUTUAL FUNDS. The best way to make investment a habit is to let your company with hold 10% of you salary income for investment in mutual funds and stocks. In this way forced investment is done and as you also invest time your income will increase beyond your imagination.

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