One of the few things you need to succeed in stock market investing is to have a very compelling reason why you should invest. Here are five reasons why you should invest:

1. Money grows faster. The PSE index grows at an average of 17% per year. The PSE index is a group of thirty of the biggest, most dominant and profitable companies in the Philippines. Apart from the PSE, there are a lot of stocks that really went the distance. Examples are the 4,700% increase of URC’s price in just five years and the 8,100% growth of JGS in six years.

2. Own a business. Have you ever dreamt of having a business? Investing in the stock market means buying and holding shares of companies hence by buying, you instantly become a part-owner of the company which means you own a part of the business. The more shares you own, the bigger your stake is. Companies give dividends every year and only shareholders are qualified to earn dividends.

3. Make great use of your income. People love to spend. During paydays, the line at the mall’s cashier is as long as the line at ATMs. Instead of spending your hard earned money and getting nothing in return, “spend” it by buying shares of companies. Think that if you buy shares of companies, you are investing in your family’s future. Buying SM or JFC shares will give you more benefits in the future than buying the latest cellphone.

4. Alternative career or at least source of income. A lot of people left their career to instead trade or invest in the stock market. I myself am an electronics engineering graduate but made a career change to trade equities. The potential is high in stock market investing. If you have a substantial income from investing, it can serve as a replacement for your current income.

5. Investing is fun. In fact, investing can be addicting but of course in a very good way. There is that great satisfaction in seeing your money grow on a regular basis.

Article by Makoy Velasco, Certified Securities Representative
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