AS a registered financial planner, I’ve seen where most people get stuck, and surprisingly, it’s rarely about money. It’s about confidence. Many treat investing as an intimidating task reserved for experts, overwhelmed by technical terms and terrified of choosing the “wrong” stock. This fear is understandable, but it’s time to move past it. What matters isn’t how young you are, but how new you are. Experience, not age, determines your starting point.
Think of investing as preparing for a marathon. A first-time runner doesn’t begin by joining the 42-kilometer marathon. They start with light jogs, gradually building stamina through consistent training. Investing works the same way. You start small, stay committed and steadily increase your knowledge and confidence as you progress.
At its core, investing simply means placing your money into assets with the potential to grow, allowing your money to work for you over time. If you’re ready to move past the overwhelm and follow a practical, timeless, no-nonsense guide for beginning your journey, here is a straightforward approach to help you start with clarity and purpose.
The biggest mistake new investors make is chasing the highest returns. We’ve all heard dramatic success stories about someone’s “miracle stock,” and the temptation to follow that path is strong. But prudent investing requires a different mindset. Instead of asking, “How much can I gain?” the better question is, “How much am I willing to lose for this potential return?” Every investment carries risk. Understand your risk tolerance. Your emotional and financial ability to withstand market dips is essential. If a 10 percent decline in your portfolio would keep you awake at night, the investment is too aggressive for you. Start conservatively, gain experience and adjust only when your competence and confidence grow.
Once your investments align with your risk tolerance, remember that your most powerful advantage is time. Compounding transforms small, consistent contributions into significant growth. Even modest amounts can create wealth over decades. For example, imagine saving just P5 every day starting at age seven, invested with an average annual return of 8 percent. By the time you retire at 60, that small daily habit could grow to over P1.3 million all without ever making a large lump sum contribution. This demonstrates the extraordinary power of starting early and remaining consistent, proving that even tiny steps can lead to big results.
Ironically, the greatest threat to your investment success isn’t volatility, it’s inertia. Majority of us wait for the “perfect” moment: the perfect market, the perfect income level, the perfect level of knowledge. But there will always be dramatic headlines, economic uncertainty or reasons to postpone. The perfect moment doesn’t exist. The right time to start is now. The action is far more important than the amount.
To manage risk and maintain consistency, rely on two timeless principles: diversification and automation. Diversification means spreading your money across various asset classes such as stocks or bonds, so that poor performance in one area can be balanced by stability or growth in another. This reduces emotional stress and smooths out your long-term results.
Automation removes emotion from your decisions. By setting up automatic transfers into your investment account every payday, you build discipline without having to think about it. Automation also allows you to practice peso cost averaging buying more units when prices are low and fewer when prices are high. This keeps you invested consistently regardless of market conditions.
But automation doesn’t mean neglect; commit to reviewing your portfolio twice a year to ensure it still aligns with your goals and risk tolerance.
Confidence comes from knowledge and ownership. You should be the leader of your financial life: continuously learn, read books and understand what you are investing in and why. A timeless place to start is “The Richest Man in Babylon” by George S. Clason, whose simple lessons on saving, discipline and investing remain profoundly relevant today. Continuous learning allows you to navigate market downturns with logic rather than fear.
Investing is not a race or a gamble; it is a habit of self-reliance built through informed choices and steady action. You don’t need to be an expert overnight, but you need the willingness to take the first step and continue to learn.
Don’t overthink it. Just start. This single step marks your transition from standing still to moving forward, your first stride toward financial independence.
Jen Lim-De Leon is a Registered Financial Planner of RFP Philippines. To learn more about personal financial planning, attend the 114th RFP program this January 2026. Email [email protected] or visit rfp.ph to learn more about the program.