Peso Cost Averaging

By Cheryl Sperling

Last time, we were talking about investing in mutual funds. Some will be asking when is the best time to invest and how often do we invest? Well, there's is no best time to invest than NOW! The sooner we start investing, the better, due to the power of compounding or the rule of 72. We invest even when the market is down, or the market is up, or when there is a political chaos, or when there is political peace and quite. We may hear that we should time the market, but in the following chart below, it will illustrate three (3) scenarios of different market conditions in the stock market.

Peso Cost Averaging. Like saving, we should make investing a regular habit. We should invest regularly, say monthly at a fixed amount! This is what we call as peso cost averaging. By doing so, we minimize or reduce the risk of our investment when the market goes up and down, or simply said whether the prices of stocks are high or when the prices are down. "Save as fast as you can while you can."

                                                         *Courtesy of IMG

In the illustration, an investor, Mr. A, decided or planned to invest 100 pesos every month for 6 months: (Today, or at present, we can start investing in mutual funds starting at

Take Control of Your Future

By Cheryl Sperling

Almost all of us wants to be sexy or macho, strong and healthy. But, just like being physically fit and healthy, being financially fit is not that easy at all. It needs a lot of sacrifice and discipline plus planning to be able to reach our goal. 'Sacrifice', in the sense that we delay our "wants" today and invest first and grow our money. Bro. Bo said, that, "Its either you have money now or you will have money forever." "Discipline" is needed to be able to set aside a regular amount for your financial goals, may it be short term or for the long term goal which is for your retirement. "Planning", as its only through good planning that you will be able to map out a clear financial future and reach your ultimate goal of financial freedom!

Everyone has different goals, depending on their needs! So there is no "one" solution for everyone. Different challenges, calls for different solutions! And as we go through life, our status and family changes, like from being single to getting married and then to having children, that's why we have to continually revise our plan and do financial check-ups along the way. Here's a guide below:

                                            * Courtesy of IMG