With food, electric bill, water bill, house financing/ house rent, daily needs and miscellaneous; after all of these, how much did you save? Yeah. I know, none. In this fast changing world, with instant noodles, instant coffee and instant everything I’m not that shocked to note that we also have instant money. Pay day is equal to pay your bills day. Expenses are growing but salary is all the same that’s why most people are turning into entrepreneurs, having sideline jobs and investing.

 

Growing your income nowadays is not that hard anymore. With vast opportunities and an array of options to indulge into, we compiled some ways of growing your hard earned money to enjoy and spoil yourself to some of this world’s perks with Php5000 to start with.

Investing

Open Google.com, type:  invest, and click search. You’ll be amazed by the options after options of investment schemes you can think of. But don’t be lured easily. Some of those are legit while others are not. Be a wise investor and do your research. I know, I know, those 5-digit return of investment is really eye catching and quite frankly alluring but we don’t want to be running after someone who took our money for themselves now, do we?

Tips: To check legitimate investment firms, verify their credentials. You can always check if they are registered with the Securities and Exchange Commission (SEC). Next, don’t rush into investing and chase “phantom riches”; be reasonable enough to know which realistic return of investment is and not just promises. Next, refuse to be rushed. Just don’t. Another thing, don’t feel obligated because he/she gave you a gift. Trust me, they know their game. And lastly, for now, arm yourself with information. Always look for red flags of investment frauds.

Armed with the above mentioned, we are now ready to enter the world of investment. So where do we start? Let’s try first.

Bonds-

  • Retail Treasury bonds or RTB is a type of investment here in the Philippines. Virtually “risk-free”. It is considered zero-risk because it is a direct, unconditional and general obligation of the Republic of the Philippines.
  • The downside includes lower long-term return compared to and dramatically suffers from price fluctuation due to interest rates’ rise and fall.

Retail Treasury Bonds Features:

  • earns fixed interest rate
  • interest rate is based on prevailing market rate
  • interest paid every three months during the term of the bond
  • placement targeted at retail and individual level
  • Interest income on retail treasury bonds or RTBs is subject to the 20% final withholding tax.

Benefits of Retail treasury bonds

  • Zero-risk. They are direct, unconditional and general obligations of the Republic of the Philippines (“ROP“).
  • Higher-yielding. The interest rate is superior to other investments.
  • They are available for as low as P5,000 investment (during the Public Offering).
  • Pay frequent cash flows. Interest payments will be made quarterly.
  • They can easily be bought and sold in the secondary market through the Selling Agents subject to minimum requirements and market rates.

For more on bonds, check out Think Pesos’ post on investing in retail treasury bonds in the Philippines.

Stocks-

  • Stocks are shares of ownership in a corporation. A stock market is a place where stocks are bought and sold. The Philippine Stock Exchange (PSE) is the corporation that governs our local stock market. People buy or invest in stocks to benefit from a company’s tremendous value potential over time.
  • The downside of stocks includes the dramatic rise or fall of its price and no guarantee of return.
  • 4 golden rules include: Invest Early, Invest Regularly, Invest Long Term and Invest using Diversification. For more information visit their website: https://www.colfinancial.com.

  • A mutual fund is a collection of stocks and/or bonds. It is an investment funded by various people or shareholders that are professionally managed and who invest their money in stocks, bonds, and other securities. Each investor owns a share that represents a portion of the holdings of the fund.
  • You can make money in three way:
  • Dividends on stocks and interest on bonds. A dividend is a sum of money paid regularly by the company to its shareholders through its profits while interest is a return of money at a particular rate for a money loan or delayed payment.
  • Capital gain: it is the sell in security with increased priced.
  • Sell: selling your mutual fund share for a profit is not a bad way to gain income. It is done if your funds haveincreased in price but weren’t

Compounding-

  • Compounding is all about making your money generate savings, which can be reinvested to generate more earnings. If you invest your P5,000 at month at 6% per annum, that means that as the principal increases, it produces higher earnings in a month. Of course, it will take some time before you can really feel the effect of compounding, but the longer you keep your money invested, the more you stand to gain.

Time deposit-

  • For people who want a risk-free investment and attractive interest rate, time deposit is the apt alternative. Time deposit means a deposit in a bank account that cannot be withdrawn before a set date or for which notice of withdrawal is required.
  • Most Philippine banks offers an array of time deposit schemes, let’s have BDO for an example: with a minimum initial placement of php1,000, varied placement terms, (30, 60, 90, 180 or 360 days) with 0.250%, 0.250%, 0.250%, 0.500% and 0.500% interest rate per annum respectively.

Business

Another is .  Entrepreneurship basically means starting your own business. A person doing this is called an entrepreneur. Usually, they are solely responsible for commercial undertaking, directing the factors of production–the humanfinancial and material resources–that are required to exploit a business opportunity and acts as manager and analyst.

Online selling is a trend today. With social media having a vast influence with everyone, easy access to anything and everything through the internet or just being lazy going out to shop, online shops sprout like mushrooms. This is a very good platform to make money.

Setting up a business can be troublesome but with here are some basic steps in starting up one:

  1. Research: Target customers

  • Starting a new business (in this case let’s assume online shop), remember that you will be facing a tough competition with those who are in this business way longer than you so you need to establish your potential clients. It will be easier if you have a specific target than being a generic online shop. Example: you plan of selling t-shirts with an anime theme. In this case, you will be attracting anime fanatics and not the general public.
  1. Check out the competition

  • Know your competition and create ideas on how you can be more creative and appealing. Get ideas from various online shops and try to integrate into your own business. Don’t just be“another online shop”. Stand out and make a statement.
  1. Business plan

  • Doesn’t have to be a thorough one. We just need you to be able to draft a guiding plan. A plan that can be accomplished and will be put into action. You can write your specific mission, vision, and objective or goals. Your simple plan must be specific, measurable, achievable, relevant and time-bound or SMART. Remember. SMART.
  1. Necessary Capital

    • This is where we need your investment, although we’ve already invested time and energy preparing the above mentioned, we need to have now our capital, money. We will need this to jumpstart our business.
  1. Happy selling!

    • Start selling and enjoy. Be nice to your costumer because they are your bloodline. You can expect your return of investment in due time. From small beginnings come great things so be patient and protect your investment.

Social Security System (SSS)

Not really a quick php5,000 to php50,000 growth but I would like to emphasize the importance of having a Social Security investment. Although mandatory for people in private sector, (Government Service Insurance System or GSIS for Government employees), an unemployed individual can also acquire this service.

Covered employees are entitled to a package of benefits under the Social Security and Employees’ Compensation (EC) Programs in the event of death, disability, sickness, maternity and old age. Self-employed and voluntary members also get the same benefits as covered employees, except those benefits under the EC program.

Read full content from the SSS website

SSS benefits will not be felt automatically but will be beneficial in the long run.

Conclusion:

We have a lot of options in investing and business ventures. But we need to make sure that at the end of the day we protect ourselves from scammers- people who extort money from honest working people. There is really no quick money, but being creative and wise could be a very good help in making your money grow.

For young adults like me, it is never too early to invest although, theoretically, we first need to be financially stable before investing into anything but putting your money into something that can double or triple in the long run would be practically beneficial.