My First Investing/Trading Books

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When I was learning about investing in the stock market, I needed books for more information. There are a lot of free pdf on the web but the books that I like, I want to have a hard copy of it so that my children maybe can read it someday. Maybe that will be the legacy that I'll be leaving them. I want them to know money management as it is very important. If only I have known that when we were kids, maybe I have chosen a different path. So, I went to check the bookstore and EXPENSIVE!! I searched for online bookstores that offers affordable books like amazon and I found at about BOOK DEPOSITORY. These are my first books. Jesse Livermore's Methods of Trading in Stocks - Richard Wyckoff This was my first ever book about trading. It has only 32 pages and can be read in one sitting but full of information. It tells about how Livermore's preparation before and after trading, money management, news, stocks to trade and pyramiding.   How To Trade in Stocks - Jesse Li

Financial Planning: How to Begin? - Part 2

After knowing your financial standing, you need to set your financial goals clearly but before that, you need to understand the basic financial terms such as compounding interest, time value of money, inflation, types of income, types of debt, leverage etc. Also, I would like you to understand the financial planning pyramid. This will be the basis of your goals.



As you can see, before you start accumulating your wealth, one has to protect itself first from unforeseen events such as death, illness, disability, job loss or accidents especially if you are the breadwinner of the family by getting insured as soon as possible. Because as you grow older, premium payments for insurances will be more expensive. This will also actually help you upon wealth distribution.

For those who cannot afford insurances provided by private institutions, I would recommend that you at least pay those government backed insurances such as SSS, Pag-ibig for retirement and Philhealth as health insurance.

Have an emergency fund of at least 3-6 months of your monthly expenses. This should be readily accessible.

Picture source: web

While building your wealth foundation, list down all the things you want in life. These things should be SMART - specific, measurable, attainable, relevant and timely. Sort them according to your priorities - short-term (1-2 years), medium (2-5 years) and long-term (more than 5 years). Then monitor it every month if you are hitting the target or not.

Example:

Main goal: What do you want to achieve in life? You need to know this so that you know where to go. It's like traveling. If you don't know your destination then it's pointless.
Short-term goals: Get protected by
  • getting insurance - VUL/Term/Whole within the year with a budget of Pxxxx. Can start by September
  • emergency fund - Target amount of Pxxxx to be completed on .... Already have Pxxx. The balance will be paid starting September. Monthly savings would be Pxxx.
Medium-term goals:
  • Travel fund - travel to Hongkong on .... Budget of Pxxxx. Compute how many months are you going to save before the travel date. Example: Travel date: September with a budget of P20,000. Ticket to be booked around March costing around P6,000 (on sale). Hotel to be booked around June. Can start saving by January. Monthly savings should be P20,000/8 months (Jan-Aug) = P2,500 per month. By March you will be able to save P7,500 for the ticket and by June a total amount of  P15,000 - P6,000 (ticket)= P9,000.
  • Memorial plan
Medium to long-term goals:
  • House & lot - Target date: 2018, Amount: Pxxx exclusive of furnishings, Furnishings budget: Pxxx, Loan or cash, Loan: how much is the downpayment plus other fees. Monthly amortization inclusive of MRI and fire insurance etc. After getting all needed information, compute if you can afford or not, how much are you willing to save and when will you start saving. The same as above procedure.
  • Business fund
Long-term goals:
  • Retirement fund
  • Education fund for my baby

So what are your goals? Do you know how to achieve it?


















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