Defy Inflation Rate by Investing on Mutual Funds and in the Stock Market

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Stock Market Investment and Trade Strategies - JayceeDeGuzman.com

“If you can’t save the little money you have, you can never save  anything even when you have a lot.” – Jaycee De Guzman

My gosh! I faint every time I remind my friends with my own quotation. I should have had millions earlier than my target retirement age had I started investing when I was still a poor employee. Yes! You can invest even if you’re a rank-and-file employee. You don’t have to be a businessman, a good speaker or a good writer.

Aside from my Internet Marketing businesses, I have invested a lot of money in mutual funds and in the stock market. Neither will I let my money lose its purchasing power by depositing it in the bank nor will I want to live on the interest that is lower than the inflation rate.

Based on my research, there was an 8.30% inflation rate in 2008. From 1958 until 2012, we still hold the record for a jaw-dropping average of a 9.05% inflation rate. The inflation rate is a term we learned in our Economics 101 way back in high school or in college. When inflation rate increases, our money loses its purchasing power.

When I was still five or six years old, I can still remember that the jeepney fare from our town to the bus terminal was only PHP5.00 (more or less $0.125). After more than 20 years, it’s almost PHP30.00 (more or less $0.75). Put your money in the bank as a regular deposit and you’ll get 3% interest rate. Put it in a time deposit and you’ll get 5% interest rate, perhaps. If we’re still averaging at 9.05% inflation rate and you’ll only get a fixed 5% interest rate on your money in the bank, you’re losing 4.05%.

Simple. Elementary. No-brainer. Did that shock you now? Oh, not yet. Hold it. I’m yet to speak the shock of your life.

While I’m busy with my Internet Marketing businesses, I have dabbled in investing in the stock market and in mutual funds. On a yearly basis, my investments average a growth rate of 12%. Not only that. There are some years where my investment played at 20%. Now, please do your elementary Arithmetic and find the difference between the 5% interest rate for a time deposit in a bank and the 20% aggressive yet volatile interest rate of my investments in mutual funds and in the stock market. That’s a wriggley-wiggley 15% difference.

Now, I want you to see my potential earnings when I reach the page of 50 if I will be investing at least PHP5,000.00 a month and if my investment will play at an annual rate of 12%. Please hold your armchair tight because one of my friends almost fell off of his chair when I gave him an advice how I invest my money. Take note: I invest. I don’t trade. Trading is when you put your money in the stock market or in mutual funds and you sell your shares of stocks just within a few days. That’s not investing. Investing is when you put your money in the stock market and you leave it for long years just like how I show my illustration below.

Again, I don’t trade. I invest.

Watch this.

stock market investment

Friends, I want to be very rich so I can fund my organizations in uplifting Filipinos’ financial literacy. I have come to the point where I have felt from within me that it is not enough that I am a great provider for my family. I’ve grown. I’ve become better. I’ve set my goals to the limitless blessings of God’s universe.

Jaycee De Guzman

4 COMMENTS

  1. Ive learn the same principle and concepts and more by reading books of Bro. Bo Sanchez. You may do the same folks. Together,let’s be free from the traditional way of earning, that is.working for money. Lets do the opposite! lets make our money work for us!

  2. trading & investing… two really different things.

    Everyday, everybody trades one thing for something… and for most people, they trade their time for money.

    Unfortunately, not most people invest the money they earn from their trade. According to COL Financial, there is only 5% of all Filipinos who invest (in the stock market, that is).

    This post sure helps in our job of letting people know about the power of investing.

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