When it comes to investing, the goal is to make your money work for you. Rather than working yourself to the bones for a paycheck only to have it gather dust in a savings account, you should work to grow your money instead. The earlier you start investing, the better. Investing early on in life allows you to develop disciplined spending and saving habits which will benefit you greatly in the future. Here are the most worthwhile investments you can make as a millennial:
Investing in real estate because the price that you buy a piece of property is guaranteed to appreciate over time. You can also rent out the property to generate a recurring passive income. Lane is quite valuable as well since it’s easy to maintain and the price of land doesn’t depreciate over time. The key to buying the right kind of real estate that’ll provide you with positive returns is finding the best location. There are plenty of condos and affordable houses and lots for sale in prime areas like Taguig, Cavite, Pasig, Makati, or Manila. These cities are among the best places for investing in real estate since there’s a high demand for commercial and residential properties located here.
Government securities can provide you with a regular income every year. Examples of such include Pag-ibig Housing Bonds, Retail Treasury Bonds, and Treasury Bills (T-Bills). These are quite safe to invest in since they’re guaranteed by the Philippine government. Most government securities may be liquidated by selling it to other investors or selling it back to the banks that offered the product in the first place.
Stocks represent the shares of a company that you own. When prices of assets and security rise continuously during a bull run, stocks perform very well and you could potentially earn a lot. This is especially true if you’re able to get good stocks during the initial public offering. They offer quite a good return on investment, but they’re also risky since they expose your money to a high degree of volatility.
Bonds are loans imparted onto a government entity or company that pays investors a fixed rate of return over a period of time, generally anywhere from one to 30 years. They’re also known as fixed-income security since they offer a steady stream of payments. Bonds are not an entirely risk-free investment, but they’re still much safer compared to stocks.
Mutual funds, Exchange Traded Funds (ETF), and Unit Investment Trust Funds (UITF) pool your money in with an investment scheme offered by banks and financial institutions. Since you’re benefiting from the knowledge of fund managers who will be responsible for investing your cash, you won’t have to worry about daily fluctuations or where to invest.
Time deposits are like savings accounts, except that they’re more accurately described as an investment account where you can store your money for a fixed period of time. Unlike savings accounts, you can’t just withdraw money if it hasn’t reached the set maturity date yet. You can expect to receive higher earnings through interest the longer you keep the money in the bank.
Do your future self a favor by investing your hard-earned cash into something profitable and worthwhile now. You’ll be thankful you did.
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