Wednesday, October 31, 2012

Resume of an Investor

In a corporate world and for people who would want to climb the corporate ladder, we need resume to impress our bosses. I remember my first time writing my resume, that I struggle to write anything relevant just to fill in the space of the paper. Aside from educational background, that's about it for a new grad.

As you may have realized that during your college years that you are doomed to find a job if you graduated still trying hard to write your resume. You may have realized to have a part time job or do an internship just to fill in the void in the paper. This is a good thing and will ultimately give you an easier time than those students who just party their way to college.

Now that the corporate world is just a past for me. I realized that there are also things that I'm trying hard to write about. A resume of an investor is hard. In actuality, its writing your portfolio.

If you would draw a square in a piece of paper. This square will signify where you keep your money. It may be a bank, a safe, a piggy bank or a wallet. Then on the right side, draw or list down your expenses and all the things you want in life, car, house, a boat, travel.

Now, draw an arrow from the square to the expenses and other things you want in life. This signifies money coming out of your keep.

Seems easy right?

Now to sustain those expenses and things you want, you will need to have an income source. On the left of the square, draw your income sources. Draw your face or list your job title, for others, it could be a business and any side businesses you have..

Now draw an arrow from the income source to your square. This signifies money coming in to your keep and then out to be spent on expenses and luxuries.

As you might have imagine, the left side is where you want to focus on. And that is where I had a hard time drawing. A few years ago, I only have myself listed there as an income source. The money that I earn from my salary will sustain my expenses. But if I became sick. I'm not only sick, I'll also starve to death. Which is not good. This made me realize that I should build an income source that would sustain my expenses and all the luxuries I desire.

When starting out, this is the kind of diagram we will see:


But what we want to achieve is to be able to do the things we want without having to work. In that regard, I think focusing all our energy to build our assets should be our main priority. This is the kind of diagram that we must aim to strive.



I don't want to work my life thru retirement. I want to retire young, travel, enjoy life, experience joy with loved ones. I'm sure you also want the same. So if you are reading this blog post, you have to realize that every peso you earn should go to income generating investments that will help you retire early and sustain any lifestyle that you desire.

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