Once you reach your 20s, you will be pressured to afford your own home and car. Many young professionals plan to achieve these assets when they reach the age of 25 and above. Although some can really make it happen, it becomes impossible for others considering many factors, such as their income, status in life, the lack of investments, and so on. I see no wrong in dreaming to accumulate your assets early. But, how can you identify the assets you should save? Do you need to prioritize your house? Your car? What else should you buy?
Depending on your goals
Your assets to accumulate will depend on your goals. Do you want to prioritize having your own house and lot? If you already have it, what comes next? Let’s just say you are starting from scratch. To determine the assets you should accumulate, you should list down your goals first. Arrange your thoughts for them to be realistic. Pattern your goals to your current financial status. Organize your priorities. Once you have a clear set of goals, that’s the time you should work on what to buy first. Your goals will guide you on what steps to take. They will also give you a clearer view of your vision in life.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the training below.
Stock Smarts Zoom Technical Analysis
Stock Smarts: Live Traning Fundamental Analysis
Stock Smarts Book Series
Establish a business or other sources of passive income
For me, having your own passive income should be your top priority. Unless you are earning a 6-digit salary every month, it’s tough to buy your house or car with your salary alone, regardless if it is cash or installment. You might need another source of income in order to save up for those assets considering that they are expensive. You need not look for another job. But, I highly recommend you to look for a source of passive income, such as investments. If you have savings right now that you are willing to invest, use them to establish your own business. Use it to open an investment account and wait for your money to grow.
Get properties
Since real estate is considered a stable portfolio of investments, you should prioritize getting properties next. Whether it’s a residential house, a commercial building, a rest house, an apartment you can rent out, a condo, or whatever type of properties, you should buy them. By purchasing your own properties, you can actually earn even without renting it out. Capital appreciation is a great way to earn from real properties. Once you have them, the value will continue to increase.
Start your retirement plans
Another asset you should get is your retirement plan. Not everyone in the Philippines is privileged nor willing to have their own retirement plans for the mere fact that there’s already an SSS pension. But the question is, is it enough? I recommend you to get a separate plan that you can truly enjoy once you retire. Start looking for a financial advisor and talk about your insurance. This is the easiest way to get hold of the plan that will benefit you for the rest of your life.
a
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
