When is the best time to invest?

Time is your friend when it comes to investing. The earlier you invest on assets, the better because they will have more time to grow and give you a profit. While it is true that the best time to invest was yesterday and the right time to invest is now, it may not always be practical (in my opinion).

To answer the question “When is the best time to invest?”

Here are some pointers to help us out

Investments  Risks

The first time I went to Cebu, we had an activity called canyoneering at Badian. Basically, the activity is a trek from Badian to Kawasan Falls which includes a lot of cliff diving, sliding and swimming. The first part of the trek was a cliff jump which maybe around 20feet high. At first I was quite nervous and excited at the same time  because I haven’t done that before. I also didn’t volunteer to jump first and waited for someone to. The moment I saw my friend jump first and survived, it has given me more confidence to jump because I realized that I will be okay. And so I jump my first cliff jump and it was amazing. The next cliff jumps were a mixed of low and high jumps but because of the confidence I had on my first jump, all of them was enjoyable.

Why am I sharing you this?

All types of investments have risks incorporated in them whether it is low or high risk. Having that said it would be riskier if you jump straight to investing ‘now’ without understanding these kinds of risks.

Same with the canyoneering experience, I felt nervous and excited at the same time when I was just starting to invest. I didn’t invest straight away and asked people first who have experience in investing. While different people have different experiences and opinions, I wasn’t getting anywhere near investing in my very first asset because I was still anxious about it until I have talked to a professional. She was experienced and patient enough to explain to me in detail how different investment vehicles work and how could I profit or lose in them. Finally after our sessions I was confident enough to invest and I bought that UITF as my very first investment and it was amazing (I am finally investing!). After some time, I learned also to invest directly in the stock market and have made investing enjoyable(just like the cliff jumps).

My tip for you (if you are not acquainted yet with investment risks) is to consult a professional first and understand these investments you are eyeing to before you invest ‘NOW’ simply because there is a big difference between “confidently investing” and “anxiously investing”. Investing should be stress free and it shouldn’t give you sleepless nights. Investing is always scary but the more we understand them the lesser we get scared and stressed.

Enjoying Canyoneering!
Enjoying Canyoneering!

Cash flow

I have heard people saying that we have to invest so that we would have more money. While this is true in context some people interpret it the wrong way. People have gone to that path where they put more weight in having ‘more money’ and jump straight into investing without checking their cash flows whether it is positive or negative. They were blinded by the thought of ‘having more money’ thinking it would better their cash flow.

It should be the other way around because investing is not guaranteed, your income is!(as long as you work).

We have to put more priority in our cash flows specifically our income because it would better our investing.

Cash flow is the life blood of our personal finance. Without it, we won’t have anything to spend, save nor invest and it is very important that it is a positive cash flow, meaning we should spend less than what we earn. So before we jump straight to investing ‘now’ we should first have a positive and steady cash flow.

#GentleReminder : Instead of focusing on investing put more weight in creating more income 🙂

Risk Management

The type of money we need in investing is ‘long-term money’ meaning, whatever happens to us, that ‘long-term money’ should stay invested for it to grow and reach its goal. If an emergency happens to us without having an insurance, healthcare and emergency fund the tendency is for us to withdraw our investments either at a profit or at a loss.

We are blessed enough if we have withdrawn at a profit but what if we have withdrawn at a loss?

Instead of earning, we ended up losing money.

So before we invest I believe that it is a great idea to protect ourselves first with insurance, healthcare and emergency fund in order for us to fully enjoy investing and earn from it.

Summarizing it.

1. We have to fully understand what we are going into before jumping off the cliff.

2. We should have a positive and steady cash flow.

3. It is advisable to protect ourselves with insurance, healthcare and emergency fund to fully enjoy investing.

I hope that these pointers made sense and to answer the question “When is the best time to invest?”.


Photo Credits : VirtualEyeSee

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