The Millennial Investor


How great is it to be young and being able to invest?

The Filipino millennial is spending mounds of money on experiences, with the availability of so-called Piso fares, coupon promos, app discounts and others, local young professionals go to fancy places and eat at the newest food hot spots available. Just take a look at Facebook and Instagram posts of young people. Hashtag LaBoracay. Hashtag VitaminSea. Hashtag YOLO.

The list goes on. This just shows we have more disposable income, and the spending would only get bigger once we get used to the new tax law. But how are spending power and disposable income related to investing?

With every purchase, we exchange money for them. More money equates to greater purchasing power. The more purchasing power we have, the more we feel secure about our finances. Sadly, being able to maximize this potential to make us secure financially is almost always the least of priorities among young professionals early on in their careers. This is not saying we must avoid or neglect enjoying what life has to offer. Rather, being able to create other sources of income and being able to properly allocate money from these sources to live life in full while preparing for life’s uncertainties is what we as millennials should focus early on. From there, we could grow our financial portfolio and generate more income from various sources from different instruments.

However, one must not be too focused of just growing money. Protecting and conserving financial growth is the most neglected aspect of investing and financial planning. Everyone forgets that those hooked on just making money but stumbles quickly finds all his
resources gone.

Proper allocation of one’s financial portfolio is crucial to becoming financially secure. There is not one investment instrument that fixes all needs. A combination of asset types is necessary as this mitigates the risks involved in investing. A word of caution: Be vigilant with investment offers as there are no guaranteed investments. Risk is relative to gain as more risk equates to higher growth potential and vice versa. Do not be tempted by such offers and always keep your emotions in check when looking over for financial instruments and businesses. Remember the very definition of investment: It is a purchase of an asset with the expectation of profiting from it overtime. From the definition itself, investments are not guaranteed. Let us always remember that we do not stop from growing our funds. Regularly reviewing funds requires planning, from accumulating assets to protecting and conserving it for use of next of kin.

As a millennial, we have to be financially secure early on in life. Being able to create several sources of income provides opportunities not only for ourselves but also for others looking to create opportunities for themselves, as well. We become better in our community by contributing to the economy that brings us the services and commodities we want for our own enjoyment. While we may not start out big, these small steps would bring us toward our dream goals. Living life to the fullest is the mantra not only of millennials but of all generations to come. It is great to be young and being able to invest. It is not too late. Investing money only requires consistency and discipline. By doing it regularly, we build a foundation that enables us to accumulate more. And by having more, we provide the financial security not just for ourselves but also for our family.


Don-Don Adolfo Crisostomo is a registered financial planner of RFP Philippines. To learn more about financial planning, join the 68th RFP program this March 2018. To inquire, e-mail, or text <name><e-mail> <RFP> at 0917-9689774.


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