Adulting is difficult for everyone, but it's especially difficult for young adults who spend over their means. Isn't it easier to spend a lot of money than it is to be frugal?
Are you in your twenties or thirties and having financial difficulties? Even if they are aware of their future needs, Filipino millennials are not saving and investing enough, according to a recent survey. You may have previously heard this financial advice from baby boomers, but it's worth repeating: don't just save—invest! Here are some millennial investment tips to consider if you're not sure what to do with your money: 1. Small Business Why don't you turn your pastime into a profitable business? Let's imagine you're a fashionista who loves to splurge on handbags and shoes. You can utilize Facebook and Instagram to sell your unwanted items, or you can hold a garage sale. You could also start a pastry business and market it online if you enjoy baking. Because it does not take a large sum of money or a business degree, a small business is one of the most accessible investments for millennials. Even a small sum of money, such as twenty pesos, can go a long way. If you require additional funds to run your business, you have a variety of possibilities. You can receive a personal loan from a bank, for example. 2. Variable Universal Life Insurance (VUL) A VUL is a type of life insurance that also functions as an investment. When you get one, you protect the people who rely on you financially (such as your parents or children) in the event that something unfortunate occurs to you. Plus, the money you put in every month generates returns for you. VULs are a terrific investing option for millennials because of their liquidity—you can access your assets after a set period of time, which may be quite useful in times of financial hardship. 3. Mutual Funds Stock market investing can be lucrative, but it can also be confusing and complicated for first-time investors. It's one of the finest investments for millennials, so put your money in a mutual fund and study at the same time. Your money is combined with funds from other investors and invested by experienced fund managers in a variety of securities such as bonds, stock market funds, and money market funds. Because your money is managed by professionals, you can rest assured that it will grow over time. 4. Pag-Ibig or SSS Investment Program The Pag-IBIG Fund and the Social Security System both have investment/savings schemes that are among the easiest first investments (SSS). You can start investing in the Modified Pag-IBIG 2 (MP2) or the SSS Personal Equity and Savings Option (P.E.S.O.) Fund for as little as PHP 500 or PHP 1,000, respectively. Both investment plans are backed by the Philippine government, ensuring that you would have a low risk of losing your money. The MP2 and P.E.S.O. Funds are also simple to obtain if you are a registered Pag-IBIG and SSS member who meets the basic requirements. You can enroll in person at their branch or online through their individual websites. 5. Bonds Investing for millennials does not have to be difficult. As a newbie, you're probably afraid of taking big financial risks. This is why millennials prefer low-risk investing options such as bonds. Bonds produce smaller profits than other investments, such as equities, due to their low risk. However, bond investment is far superior to putting all of your money in a savings account. Bonds offer better returns than bank accounts since they pay a higher interest rate. 6. Retirement Fund For millennials, the optimal investment should provide financial security and protection. That is why putting money into a retirement fund is a wise decision. Take advantage of the fact that you are still unburdened by financial obligations to save for the future. Although retirement may appear to be a long way off for millennials, keep in mind that your earning potential may not be the same when you reach your fifties or sixties. So, if you're looking for a place to put your 20,000 pesos this year, talk to a financial expert about starting a retirement fund. 7. Real Estate Investment Real estate is often considered safer than other investments such as bonds and equities, even for novices, because shelter is a basic human necessity and properties are tangible assets. Stocks, for instance, are subject to price volatility as a result of changing market conditions, whereas real estate generally appreciates in value over time. However, as with anything, reaping the benefits of a real estate investment requires experience and understanding. In addition, it is always safe to start a real estate investment with a trusted brand just like Bria Homes, the Philippines’ fastest-growing real estate developer. 8. Investing in Yourself Aside from money, your greatest assets are your own skills and knowledge. As a result, starting your investing journey from within makes sense. To prepare for professional advancement, learn new skills or pursue higher education in your field. Growing professionally will provide you with a competitive advantage. Surviving the fierce competition in the corporate world is difficult enough as it is. Better earnings prospects will arise as your career progresses. It's one of the finest investments for millennials since you get to learn something new while also meeting individuals who can help you achieve your goals. Comments are closed.
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November 2021
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