First Step - My Very First Investment or Not At All

I had my very first investment in the form of a time deposit.  It was held in a rural bank which offered a much higher rate than most commercial banks.  It's 4.25% per annum enough to buy me a new cheap shoes, memory cards for psp, or a part of my desktop computer back then.  : )

Why time deposit?

Why it isn't an investment at all?

Why not other investment products?

I felt it was the safest way to let my money earn.  I was afraid, very afraid that I would lose my money which I worked so hard for years in companies.  I had no idea what am I about to do.  In fact, no one gave me advices what to do with my earnings.  I just researched and found that I would earn something like 4.25% per annum on that local bank and believed it was good considering I don't have to do anything.  There was no need to monitor or to check the banks what's happening with my money.

Years went on, my money is still with that time deposit.  I don't know why I postponed researching ways to make my money grow.  I didn't know that inflation basically eats up my savings/time deposit.  That is the time I finally thought that time deposit may be an investment but not an investment after all.

It took probably about 5 years when I finally heard about mutual funds, uitfs and stock trading.  That long period of time wasted waiting my money to lay eggs when in fact I had the chance to make my money lay golden eggs.  It took another 2 years before I finally plunged in and invested my money in mutual funds.

The money I have in time deposit is probably preserving its purchasing power at a certain point but I could have additional income if I only took the risk and opened up my mind in investing.  This is one of the reasons why I am sharing what I've learned from those years.  I encourage everyone to try investing and start with the more secure and safe ones.  You'll feel the thrill and be happy knowing that your money is working for you.  Just to give you a background, my first investment in mutual funds (equity) earned me 40% while the bond fund earned me 8%.  You do the math based on the amount you wish to invest.

Click here to review your possible investment options.  Remember, I don't advice to invest now and expect to have the same results like mine.  I just wish you to start considering and start with an amount you feel comfortable and willing to take risks and rewards with.