Feb 4, 2013

My Maid Invests in the Stock Market - The Book That Changed My Life

For some it’s the Bible.  For others it’s the Purpose Driven Life.  There even those who have read Robert Kiyosaki’s Rich Dad, Poor Dad.  And many more books that made impact in our life.  Mine is a small book written by Bro. Bo Sanchez, a Filipino, entitled My Maid Invests in the Stock Market.

It’s a financial book, a spiritual book and a motivations book wrapped in less than 50pages.  The words are easy to understand and the message readily received.  This book started my journey to financial freedom.

Flash back to 2010…

My Maid Invests in the Stock Market
Hubby just received his contract to be an Engineer at a multi-national company in Singapore; and the company was mandating that he report to work on September 01.  We’re waddling thru debt.  There were the two credit cards, the bank loan, the SSS loan and the mortgage for the 120 sq. meter residential lot that we bought a year ago.  Just last August we purchased a round trip ticket to Singapore for his medical exam.  Now, I would need to raise fund for another ticket, room rental fee and pocket money, enough to last him until he receives his pay check at the end of the month.

We’re both struggling to make everything fit in the budget.  There were still two tykes that needed their milk formula at home.  Prompting me to start my online/offline direct selling business and read anything and everything about budgeting and investing.  I would say that hubby was truly excellent at what he does.  After 3months, his boss made him a permanent staff; and at the 6th month, he was rewarded with a new position and a pay raise.

I had my doubts on investing.  There’s a big risk that I could lose my money.  So, while paying off all debts I decided to test the waters and start with BDO EIP (Easy Investment Plan).  Nothing big or too risky.  Just 1000pesos a month, every month, debited from my bank account and invested on a Fix Income Fund.  A fund that increases little by little every day.  I used my earnings from my direct selling business to fund the investment.

Fast forward to New Year 2012…
Bank loan paid
SSS loan paid
BDO credit card cut
Less than 3 months to pay the lot (paid it in 3yrs instead of 5)

I read the book My Made Invest in Stocks in pdf form.  Printed the same file and passed it to my mom.  Made up my mind that before the 2011 closes and 2012 ushers in; hubby and I will make that trip to the PSE building in Ortigas and open an account with Citiseconline.  We’ll open an EIP account for only 5000pesos; and so we did, with the 2 kids in tow.  We weren’t able to attend the seminar about investing given free by Citiseconline because we arrived late.  But it’s OK.  I have all the basic knowledge with me because of that little book.  I know that I’ll buy 100 shares of ALI and 100 shares of AEV with that 5000pesos.  And continue buying every month until I reach the FV (Fair Value) price of the stock, signaling me to sell it.

The here and now…

2012 was a good year for PSE.  The index gained 32.95%, making it the 2ndbest stock in SE Asia.  Lady luck shone its smile on me and gave me a 17.7% increase on my stocks portfolio.  I’m still continuing that BDO EIP, but increased my investment to twice a month.  The kids’ college fund is now invested on FAMI Equity Fund and Balanced Fund.

I still have credit cards but they’re now manageable.  Oh, and we made that big ticket purchase.  A brand new Hyundai Accent (no, not in cash!).  Nothing fancy.  Just something to replace the old Honda car that met its demise because of Habagat.

Here’s a glimpse of my portfolio taken this February 04, just after PSEi hit the 6400 mark.
Portfolio as of February 04

I’m not saying that the book will make you a stocks guru.  Or that I didn’t make trading mistakes.  Investing can’t and won’t be able to replace your day (or night) jobs.  Investing is made by changing your lifestyle.  Cutting off the wants and staying within the budget of the needs.  It will help you build something for the future at a faster pace if you’re not too greedy and would do your research patiently.  Financial freedom is a very long journey and all about the journey.

I love my husband and I don’t want to see him working for the next 20years just to buy that next gadget.  I’m dreaming big.  Much bigger than an iPhone or a signature bag.  I’m dreaming for my kids’ future and our retirement.

Click the link and read the book.  It’s FREE.


Post a Comment

Related Posts Plugin for WordPress, Blogger...