Investing your hard-earned money can be nerve-wracking in the beginning. But once you think of the return within a certain period of time, you know you’re putting your finances in the right channel. However, you can’t just randomly put your money out there are expect a huge return at for a considerably short period of time.
Find out some of the most common types of investments and understand how each of them work to make the best investment decision based on your specific needs.
Stocks
Buying stocks may be the most popular way to build wealth through investment. Compared to other types, stocks are relatively easier to understand. Basically, owning stocks of a specific company means you own a certain amount of shares of said company. What you have to take into consideration is that stock prices are directly affected by the company’s Economic status.
Monthly Investment: P20,000 and above
Bonds
Buying bonds on the other hand means you are lending the company your money in exchange for interest payments. While some consider this a lot safer than buying stocks, you will need to be careful with the duration of bonds. As sometimes bonds that expire after a long period of time (although yielding higher returns) can be more dangerous than those that expire after around 2 years or so.
Monthly Investment: P20,000 and above
Real Estate
Most Filipinos are keen to believing that real estate is the only wise investment move to make. And if you’re one of those people who believe this too, you might be looking into buying a home for yourself or properties to put up for rent or for sale. But did you know that real estate investments can also be full or partial ownership of land, malls, buildings, or any other establishment.
Monthly Investment: P50,000 and above
Own Businesses
The trend for millennials nowadays is focusing on investing in entities instead of stocks, bonds, and even real estate. This means they are more inclined to investing their money in setting up their own small businesses and start-ups. While this is the riskier path to take, the returns seem to be more significant in the long run.
Monthly Investment: P150,000 and above
Aside from taking your monthly income into consideration, you should also pay close attention to your ability to commit to investments. These are long-term moves you need to make to gain more chances of high returns.