When I transitioned to teaching from the corporate world, I was already risking my puny savings into the Stock Market. I started in stocks at a terrible time, it was the height of the Subprime crisis and a world recession was incoming. I lost big time. But I learned my lessons then and swore to learn more about investing in the stock market.
Generally speaking, we teachers don’t really earn a lot. For all the hard work we put in, it simply gets us by. I always hear teachers saying the following:
- “Ang tagal pa ng sweldo!”
- “Mag tutor pa ko mamaya”
- “Nag i-increase ba sweldo dito?” (a common question by new teachers in the school)
- “Libre ba yan?”
- “Next Monday pa sweldo? Paano na ang weekend? ”
Well, I’m guilty of saying some of it myself often but I realize that investing is important and necessary. However much you love your job, but if you are not financially happy, it will suck the life out of you at some level. That’s why we always seek other ways to make money.
One excellent way to make money is through the Stock Market, The Philippine Stock Market.
Generally teachers are not familiar about stocks. That’s ok, this blog entry is meant to give you a good introduction to Stocks.
Robert Kiyosaki, author of Rich Dad Poor Dad, says that the Rich make money work for them. Investing in stocks is having your money work for you instead of you working for money.
The stock market is a place where you can buy shares of listed companies. It is a market where you can buy and sell shares of different companies. A share is an ownership of a company. So if you own Jollibee Shares (no matter how little, or even 1 share only), you are still technically a part owner of Jollibee. So if you ever fancied owning a company, one way is through the stock market
So what do you do on the stock market? You simply buy and sell shares there. It’s a place where buyers and sellers are matched.
Why you should invest in Stocks!
- Stock Markets provide the best return overall. On average, they can give you 20% return. Of course, this is average, so there are years you get negative returns and on good years, you can get more than 20% return.
- You can earn 2 ways: one is if the share price increases and the other is through dividends. Telecommunications companies like PLDT and Globe provide regular dividends that beats any regular savings account.
- It’s a great way to support the Philippine Economy. Usually the Philippine Stock Market is one of the barometers for economic activity.
- The startup requirement is low. With P5,000, you can start investing in stocks.
- On a bull market, you stocks will be raging like a bull.
The RISKS in Stock Investing
- Get ready for a roller coaster. Stock prices go up and down all the time. Even if they are doing well, outside concerns like the US economy and middle east problems can send the stock price plummeting down. Tip: Buy more during these problematic times as good companies can never be down for a long time.
- Only invest money you can afford to lose in the stock market. Don’t put your emergency savings or money for the education of your children. Don’t mortgage your home for this! Put only money you wish to use as investment money.
- You need to know what you are doing. So you have to study the company you are investing in and know their business. This means you have to familiarize yourself with basic financial terminology. (Don’t worry, we will discuss it here in another part of this series)
Get Started Today!
You can start an online trading account with any of the following brokers:
1) Bpitrade (P5,000 starting fund plus you can easily link up to your BPI Savings if you have)
2) Citiseconline (P25,000 starting fund, they have customer support. They have regular seminars and research resources)
3) First Metro Securities (P5,000 – brokerage arm of Metrobank)
Follow their application procedures and within a week or so, you will be ready with an online account and can start investing.
Increasing your Financial Intelligence
Although I know the basics of Finance, I keep learning about Stocks and Personal Finance.
I read regularly the following blogs to know more about the Philippine Stock Market.
1) Miko Sayo runs Tsupitero.com (He is a short term trader and works for one of big brokerages in the country)
2) Gus Cusio (www.guscosio.com) (He is a portfolio manager for First Metro-brokerage arm of Metrobank)
With these two blogs, you get two viewpoints. One is short term and the other is long term as he talks about economic fundamentals and what’s happening in the US and European Markets.
So teachers, I hope you will open your minds to the possibility of earning through the stock market. It may seem intimidating and complicated but after a while, you will be more familiar with it and have greater confidence.
So check out the resources above and learn more about investing in the stock market.
I leave you with a final quote from the greatest investor of all time, Warren Buffet, who built his fortune by investing in stocks. He says, “Risk comes from not knowing what you’re doing.”
By educating ourselves, investing in the stock market will no longer be a gamble, but a calculated endeavor. Let’s all get rich via the Stock Market
If you have any questions, please email us at firstname.lastname@example.org
If you are a teacher with stock market experience, please share your experiences here! We would love to hear your stories and tips.
Teach well, Live well
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