Investments in people reap the greatest returns.
-Mr. Ian de Luna, UP JFA Chief Operating Officer
The delegates of the Philippine Financial Summit: Cebu Chapter. Photo is from Jon Paulo Siglos, posted with permission.
Hello fellow advocates of financial literacy! This is Gail (
In this post and those that will follow, I compile some of the valuable knowledge that had been shared in the event and in the resources available to the delegates at that time. The purpose of this post series is three-fold: 1. to compile and condense the information that was shared, 2. to make those who weren't able to attend the event learn from a delegate's experience and 3. to make my readers understand the value of establishing a community with aligned goals.
With these already laid out, let's get on ahead to the meaty parts.
The Philippine Financial Summit
The event is the product of the efforts of the UP Junior Finance Association that is based in UP Diliman. It is an event that embodies the association's advocacy of spreading financial literacy through their vision of creating the next generation of financially-wise Filipinos and mission of fostering education advancement in the field of finance.
The Summit was divided into three chapters and the Cebu chapter featured 3 general talks and two specialized talks in the fields of investment and banking. The talks were done by notable people who are experts in their fields. The first topic talked about the basics of stock trading.
Mastering the Basics of Stock Trading
Speaker: The first speaker was Ms. Conie de Castro. She is the Investor Center Officer of the COL Financial Group, Inc. in Cebu.
Ms. de Castro telling the delegates that investing is the most effective way to build personal wealth. Photo is grabbed with permission from UP JFA's FB page.
Why Invest?
There are three reasons why one should invest: 1.)to become financially independent, 2.)to achieve your financial goals and 3.)to build financial security. Becoming financially independent means having enough money to pay for expenses and to do what you enjoy. Investing can also help you achieve your financial goals earlier by making your money work for you. Investments can also help you beat inflation as it protects and grows the value of your money.
How to Start?
It all starts in the mind, for me. You have to develop the right mindset and attitudes. Get into the habit of saving. Instead of thinking of savings as unnecessary, make it compulsory. Set aside a portion of your income as savings. Set it in a place that you can't easily access so that you can't cheat your own system. It helps to set concrete financial goals with which to tie your savings to. The goal should be realistic and attainable within a certain time frame. Now don't get hasty and think that once you invest, money will fall right into your lap asap. As with everything that you wish to be successful in, discipline is to be practiced. Commit to an investment plan that is in line with your needs and goals. Of course, while there is power in knowledge, actualization is done through concrete steps. After having a stable mental foundation, act on them!
What is the stock market?
Ms. de Castro likened the stock market to a goods market. It's like a merkado but instead of selling food and goods, shares are sold. You can buy and sell shares of publicly listed companies. Investing in stocks gives you the chance to benefit from a company's growth.
How do stocks make money grow?
The speaker highlighted two mechanisms through which money in investments can grow. The first one is through price appreciation. This can happen when the company earns and grows. This growth allows for the increase of the stock price. The second is through earning dividends. This gives the shareholder a portion of a company's earnings in the form of cash or more stocks.
Why invest in the stock market?
Overtime, stocks outperform all asset classes in terms of average annual rate of return. It therefore protects us the strongest against inflation.
Wrapping up
In order to make it big in the financial game, we have to beat inflation. One way to do that is by placing your money in established investment vehicles. I have to say that my knowledge about profitable investment companies is not that broad yet. That is why I rely on like-minded individuals for experience-backed advices. I'd like to give a shoutout to 
Through the course of my studies about the technical aspects of finance, I keep coming back to a concept that allows for all the other things to flow through spontaneously - people. Communities composed of individuals that reach for a common goal help each and everyone of the members to rise up.
Full steem ahead to financial freedom! See you in the next part.