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Start saving/investing now!


Passive income ( money received from personal investments ) is the best way for financial freedom, and that is the main goal everyone should have on the top of their minds. Not because you may hate your corporate job, but because you create a second source of income, which takes away the fear of bankruptcy consequence of relying solely on your salary to pay the bills, allowing you to be more confident at taking some risks/attitudes even at the company you work for that otherwise you wouldn’t.

Both saving and investing demand discipline, understand that emotions will get in the way of both. Either in saving, as you may see a new cellphone that you want to buy and prioritize that instead of putting money for your savings account, or in Investing, as a part-time investor you should be thinking of long-term investments but if the market is crashing you may tempted to sell your stocks.


Save first, spend after. There are some tools that can help you on long term investment, keeping you focused. Writing the reason why you bought a certain stock and the time you will keep it on your portfolio, and delivering on that “promise” will only do you good, and avoid the roller coaster of investing thoughts shown in the picture above. I tend to keep it simple, 15-25% of my salary goes a side each month, and I purchase only stock base on two simple aspects:

–          Companies with high revenue versus their market capitalization ( and then prioritize those with smaller number of employees )

–          World population keeps on growing, so consumer goods companies like P&G, Unilever or Coca-Cola or even Clothes companies like Nike or Adidas, always see their market pie increasing. Also social services like the health segment see themselves with not enough resources so Private Health Providers can and will grow.

I do not purchase stocks based on one simple criteria:

–          Never invest in what is hype at the moment, you are already late.

At last, also keep the same diversification percentages, between stocks and bonds, currencies commodities ( I do 70-30),  within stocks it’s important to do more than one market, 70% US and 30% Europe. Have between 10 to 15 stocks on your portfolio.

So start now. Here’s a tool that can help you taking the first steps on investing:


Warning:  I am an amateur at investing, the advice may not be the best, but its filled with good intentions 🙂 ! If you want real advise, read the following books:

  1. The millionaire next door
  2. Common Sense in mutual funds
  3. How a second grader beats a wall street
  4. All about asset allocation

Here’s a video to inspire you on long term thinking,

Pedro Pimentel

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