When you hear the word investment, two things will definitely ring a bell to you – taking risks and getting rewards. In most cases, investments help you to earn more money and to expand your assets for your future’s sake. As you invest on certain products and services, stock market plays an important role to determine the sustainability of your investments. With that, you need to consider your current financial situation so you can have the best investment plan.


1. Identify your net worth

As mentioned above, you need to know your current financial situation by finding out your net worth. The best way to know your overall net worth is to subtract your liabilities to all of your assets. Once you identify your net worth is positive then you may move on to the next step.

2. Compute your cash flow

Before you start your investment, your monthly income has to exceed your expenses. In calculating your cash flow, you need to tally up all of your monthly expenses and subtract it to from your monthly net income. If you still have an extra money then, we can proceed to the next step.

Once you’re sure about investing your money, you can check out our loan investment  program, Vidalia Lending is a licensed lending company that has been operating for several years. For as low as P5,000, you will earn a fixed and guaranteed solid returns.

3. Pay off your high-interest credit card debts immediately

Earning a lot of money through investing is easy. For instance, if you invest on a product that provides you 10% returns then you must consider paying your high-interest credit card debts.

For example:

When you invest P 20,000 and manage to get at least 10% returns after a year then you can earn  P 2,000. But when you owe P20,000 in credit card debt, at let’s say 3.5% interest per month, and you only pay P2,000 of your bill per month. By the end of the year, you’ll have paid P3,995.47 in credit card interest.

If you combine your investment returns with your credit card interest payments, you will actually lose P 1995.47 this year, instead of earning from your investment.

At the end of the day, you can enjoy the fruit of your investment if you are debt-free.

4. Prepare a backup plan

Investing all of your money in one product might put you into risk, in case of an emergency. When you have an emergency fund, it will help you to sustain your finances if your investments will turn out not right. Just make sure that you have an emergency fund of at least 6 months income stashed away.

5. Know your investment goals are

There are two investment goals that you need to consider before investing:

For short term, invest conservatively

If you want to save up for an expensive vacation you want to take in the next one to three years or perhaps a down payment for a car then a short term investment is right for you. A good example for this is a money market fund.

For mid- to long-term, invest aggressively

In terms of saving for your children’s education or for your retirement, it’s best to invest aggressively. Why? Because even if the value fluctuates, your portfolio has plenty of time to recover before you need to liquidate it because you don’t need it right away anyway.

Following these steps will help you with your financial security. For further discussions about investment, try to consult your bank’s investment advisor so they can guide you more regarding your investment plan.

Vidalia Lending has a manage peer-to-peer investment program that will allow you to have a fixed interest rate. You may start your application now by filling out the given form.