Money Tree is Real!

My Idea of a Money Tree

My Friend I wanted to share to you this...

When I was a young boy my mother made me believe about money trees.
That trees can actually grow money with it instead of fruits.

She said all I need was just to wait until it bears cash and I can harvest them.
... then I can have the cash to buy stuff that I wanted.

She said she will give me  a money tree if I will be a good boy.

So I tried my best to be a good boy, but no money tree came.

I asked for the money tree, year after, after year.
.. and even tried to be better every time
             ....with some glitches of being stubborn of course. hahaha

My Mother told me I wasn't good enough to have it.

Still I was hoping to have that money tree.
But time passed and eventually I forget about it.

I guess I was fooled...
.. believing that someday I can get cash from that money tree

Good outcome though,
at least I grew  up a good boy all throughout my childhood years as a result.

We all have that wishful thinking though...
 ......hoping that we can have money tree to grow
            .....a tree that bear cash, more cash without exerting any effort.

Money Tree Exist
Do you know that Money Tree actually exist?

Well in plants, there is actually a plant name they call Pachira aquatica 
found in swampy lands of South Africa. 

It was later made popular in Taiwan in the 1980's as 'money tree',
often given as gift during Chinese New Year.

It is a very popular type of bonsai plant popularized by the Taiwanese
that was adopted by a lot of Asians including us, Filipinos.

It is a is said that it invites good fortune because of its 5 lobed- palmate leaves.
They usually put in a powerful place in the home to bring in more abundance in the home.

That is a  good trivia for plant and nature lovers I guess.

Now let's continue...

Money Tree for Real- Creates more Cash 
Do you know that money tree concept shared by my mom can be applicable in real life?

Yes it can be done through investing.

Your money grows through time.

This can be done with adequate knowledge and skills on how money works and how different investment vehicles can actually bring about that 'money tree' dream.

One of the vehicles that I found very powerful is growing your money
through Stock Market Investing.

Your money actually grows overtime...
           ....and it multiplies again and again
like that of a money tree that bears cash other than fruits.

Imagine guys! My Dream during childhood years actually EXIST!

My mom was actually right all this time!

Let us explore more.

Growing your 'Money Tree' through Stocks

There are actually 2 ways on how you can grow your money through Stocks

1. Price Appreciation
Most of the people who place their funds in stocks are after on price appreciation.
They buy the stocks at a low price at a certain point and sell them high depending on their goals and purpose.

Time line consideration is part of the goal.

**Investors
Some people prefer to keep their Stock positions on a long term- that is we are talking about years of keeping their money on that specific stock then sell them high after some time      - we call them 'long term investors'. 

This type of people study the fundamental background of the company well. They have a longer horizon and focus more on company valuation on a 5 year or 10 year basis or more.



**Traders
Others prefer to buy and sell stocks on a short term period. We are talking about 1 day, a week or months only.        -we call them 'traders'.

They are more focused on short term gains and then re- position their funds to other stocks once they meet their goals. This needs some mixture of fundamental understanding of stocks and technical analysis that are quite challenging for newbies like us.

2. Dividends
Some people prefer to grow their money through dividends. These are actually surplus of entities given back to the investors from the publicly listed stocks- companies. They are also in two forms.

Cash Dividends
On an interval which really depends on the companies performance, they give back to their investors whatever surplus profits they get from their business dealings in the form of cash that directly goes to your account.

Example of this company are PLDT (Tel), Globe (Glo) and others that gives cash on 1, 2 or more times in a year depending on the revenues. Literally this type of money growing on your tree can support enough cash if you get good amount of stock shares.


Stock Dividends
Another way to grow more money on your money tree is through dividends in the form of stock shares.

These are additional shares of stocks that publicly listed company is willing to share to you.

For example if the company declares 100% stock dividend to all the stock holders, if you have 1,000 shares of stocks of Jollibee Food Corporation (JFC) for example, then you will get 2,000 shares now as a result of the declaration.

 This another the way of the company to give back to their investors without giving cash.

That is an amazing way to grow your money tree right?!

Now time to explore more on how you can start your money tree for real.

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