Mistake #1 : Not investing in your own constant learning.
While modeling someone else’s success story has its pros, Filipina women often forget that even success stories only show the highlights. Do your own research and see what works for you.Know what risks you’re willing to take on. Know your budget, timeline, and success metrics.
Invest in knowledge. The more you know, the better you understand which investments are actually beneficial for you and which aren’t. Research on different types of investments. Don’t just read from one source, but several, and make your own assessments.
Do this: Ask for advice, but do not ask salesmen because they are trained to only show you the benefits. Instead, ask customers. Ask about their experience, how they understood their investments, what returns they are experiencing. That way, you will get the real pros and cons.
Mistake #2 : Not thinking in terms of assets and liabilities.
Simply put: assets put money in your pocket, and liabilities take money from your pocket.
While having some liabilities is inevitable, making sure you have more assets than liabilities is completely doable. Do this by assessing what you have and know which is which.
There is no one way to categorize what we have. In fact, an asset to one is a liability to another.
For instance, would another tube of lipstick be an asset to you or a liability? That depends. If it’s not ~eventually~ profitable to you, then it’s a liability. But, If you’re a make-up artist or a beauty blogger, then it becomes an asset.
Do This: The goal is to increase your assets and manage your liabilities. To know your actual financial wealth subtract your liabilities from your assets.
In short, the less liabilities you have, the more financially independent you become.
Mistake #3: Not reviewing your financial plan.
You will go through different stages in your life and this will require you to add or subtract to your existing list of assets and liabilities. One grave mistake most Filipina women make is acquiring an asset and forgetting about it.
Do this: Review your assets annually. Make it easier to remember by doing this on your birthday month! Make sure it’s still up to date with your goals and always check if there are better options available in the market.
Mistake #4: Thinking one asset will solve all problems.
No matter what other people tell you, there is simply no one financial asset to invest in that is superior to the other. There are many kinds and they will serve different purposes, have different timelines, cater to different budgets and have different levels of risk.
You can invest in bonds, stocks, mutual funds, a business, real estate, and others, but it is highly unlikely nor advisable that one asset will solve all your financial needs.
Do this: Make a table comparing the list of assets and their features against your priorities to come up with a mix of products that takes your own financial goals into account.