I enjoy answering emails and questions in online discussions.
Here’s a question that I answered recently.
Hi. IF I have a spare 2k pesos per month, which investment is best for me?
Here’s my answer.
Prepare a savings account first.
Hit your Tier 1 minimum emergency fund requirement first.
Tier 1 Emergency fund is worth 3-6 months of your expenses.
Proceed to step two if you consider yourself as a risk taker.
If you have obligations and people who depend on you, upgrade your emergency fund to tier 2.
Tier 2 Emergency fund is worth 3-6 months of your income.
Assess your goals and strategy.
Are you as educated as you are intelligent?
Do you have a job that pays you well, has opportunities for growth, and fulfils you?
If the answer is yes to all three, you may want to inspect your skills.
What skills can you learn?
Most books and online courses on Coursera/Udemy/SkillShare can be purchased for less than ₱2,000.
Another option is Masterclass which costs ₱1,000 a month.
Skills have the maximum rate of return for any investment.
Learning how to cook can give you an extra ₱3-12k a month.
Learning how to sell can help you earn an extra ₱1k-5k a week.
Great English skills can help you get promoted.
Learning how to write can bump your income to ₱60k a month.
Skills are fantastic investments.
Invest in skills whenever you want to increase your income or overall take-home pay.
The next investments are proper mentors.
One downside of looking for mentors are that scam artists use the word “mentors” to sound more credible.
I’m going to change the wording in this context.
Look for people who are doing the activities that you are aiming to do.
Look for peers who are a little senior or ahead in terms of experience.
If you earn below minimum wage, connect with people who earn call center income.
If you earn call center income, connect with people who earn 30 or 40k a month.
If you’re earning 30-40k a month, speak to people earning 50-60k a month.
When you’re earning 50k a month, look for people who are earning 100k a month.
Slowly expand your circle.
If you’re earning minimum wage and you speak to a six figure earner or a millionaire, you’ll have a difficult time implementing or even relating to the advice.
It is important to understand the context and move slowly.
How should you approach your seniors?
Ask potential mentors if you can buy them Starbucks or snacks and interview them for fifteen to thirty minutes.
My favorite excuse is I have a blog and would like to interview people that I look up to.
Spend ₱500 to ₱1,000 on the meeting.
Pay for their coffee and snack.
If you want to look into the IT field, interview an IT manager.
If you want to get into stocks, interview people who invest in stocks.
Bring a list of good questions with you.
Do not buy anything from the people you meet.
If they are selling insurance or investments, do not buy from them.
You are not being mentored, you are being sold a product.
Do not ask for a job or an opportunity.
You are not being mentored, you are being recruited or scammed.
Your goal is to just ask questions and get ideas on what they are doing.
If you really want to work with these people, or buy from these people, make the decision after one full year.
You are aiming for a better life.
You should never play easy to get.
If you only spend on Starbucks, you’d probably spend ₱500 an interview.
You’d spend ₱24,000 that year but you interviewed 48 people.
Your money would be worth a lot more if each interview gave you one small tip that helped improve your life.
Take notes during the conversation.
If you used the “interview for my blog” excuse, ask permission to record the conversation.
If you’d like to assist the mentor in what they are selling, the best you can do is to post their business on your blog.
Do not make a big move until you’ve spoken to at least 50 people.
We only have a limited number of years.
If you buy anything or commit to a project, you’ll have less resources to make wise decisions.
Keep your job.
Use the interviews to get smarter.
You’ll know what to do when you’re ready.
Thank you for reading.
If you have a question or would like to say anything tweet or send me an email.