Monday, April 4, 2011

Reflections on "My Maid Invests in the Stock Market ... and Why You Should, Too!"

Here are my notes and reflections on Bo Sanchez' "My Maid Invests in the Stock Market ... And Why You Should, Too!"

Envelope System
1. First Envelope - Tithe Fund (10%)
2. Second Envelope - Expense Fund (Food, Gas, Bills, Mortgages, Entertainment)
3. Third Envelope - Support Fund (for the family)
4. Fourth Envelope - Emergency Fund (6 months living expenses)
5. Fifth Envelope - Retirement Fund (pension plans, mutual funds, stocks)

Four Rules of Making Millions in the Stock Market
1. Invest Small Amounts Every Month for 20 Years or More
- Invest, not trade
- Take advantage of Money-Cost Averaging
2. Invest Even When There's a Crisis
- A crisis is a wonderful buying opportunity
- You can buy the stocks of great companies at cheaper prices
3. Invest Only in Giants
- this way, you'll be assured that when the stocks go down, they will be able to bounce back
4. Invest in Many Giants
- diversify your stocks

Nothing much to reflect on because I know most of this stuff already. What I took away from reading this e-book was the renewed desire to invest in stocks. I thought to myself, "I learned about stock investing five years ago, why didn't I try it then?" Then it occurred to me, I had no extra money then. Now that I have a little money I can set aside monthly and forget about, I think it's high time for me to start investing in the stock market. My goal is to have a net worth of 50M when I retire and I believe stock investing will play a great part in helping me reach that goal. I just have to have the discipline to buy stocks regularly and keep them. This is why I signed up for an account in CitisecOnline.com (COL). I sent my application forms last week, funded my account today, and tomorrow I can already start investing!

As if this is not enough, I have another secret weapon that will urge me to invest in stocks regularly and wisely. Being a member of Bo Sanchez Truly Rich Club, I get to receive his monthly Stocks Update which tells me what great companies to invest in, or if I'm more aggressive and have the extra money, what growth companies to look out for. This way, I don't have to waste my time researching about each and every company in the stock market; I'll just do my due diligence on the shortlisted companies and pick what I would like to invest in for that month. Good thing I already received my Stocks Update the other day, I can go right ahead and choose the lucky company for my first stock investment. Now if only I can remember to log in to COL tomorrow from 9:30am to 12:10pm :)

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