ARE you a -20 or 30- something who’s stressed with finances? A recent study tells us that Filipino millennials aren’t saving and investing enough, even if we’re aware of future needs and despite us having the freedom to do so.
For many young pros and entrepreneurs – in this information age – it appears that the conventional wisdom is to consider investments early on.
We heard it from our elders time and time again, but maybe it’s worth emphasizing this financial advice: don’t just save—invest our money!
So here’s our quick rundown of the different types of investments that may work well for you. But take note that I’m breaking this into two parts to avoid #InfoOverload:
1. Bank Products
Have you heard of Saving Accounts, Money Market, Federal Insurance and Certificate of Deposits? Most likely, yes because this is the most common of all investments. This is where our deposited money is insured to up to certain margin and can easily be withdrawn.
2. Bonds: Minimum investment: P5,000 to P10,000
As a beginner, we’re likely to be cautious of taking huge investment risks. This is why low-risk investment channels like bonds are perfect for millennials. Bonds are loans offered by an investor to companies and government. In return, the borrower will pay the interest at a fixed schedule---be it annual or semi-annual and will return the principal (sum of money borrowed) on an agreed maturity date.
Because of the minimal risk, bonds return lower profits than others like stocks. But investing in bonds is a lot better than sitting all our money in a savings account, right?
3. Stocks: Minimum investment: P5,000 – P10,000
Put simply, Stocks are units of ownership in a corporation. This means that if we own or invest in stocks of a company, we incline to be become one of its owners.
4. Pagibig/SSS Investment Program: Minimum monthly investment: P500 for Modified Pagibig 2 Savings Program. P1,000 for SSS PESO Fund.
Among the easiest initial investments for millennials are the programs offered by the government. As long as you’re a registered Pag-IBIG and SSS member who meet the minimum qualifications. You can enroll over the counter or through their respective online services.
Both investment schemes are guaranteed by the Philippine government, which means we have slim chances of losing our savings.
So I guess it’s worth investing in “Pagibig,” after all? (LMAO) Okay. Let’s move forward.
5. Variable Universal Life Insurance (VUL) Minimum monthly investment: P2,000
This is where we can protect the people who depend on us (parents or children) against financial blows in case (knock on wood) something bad happens to us. Plus, we earn profits from the money we put in every month.
What’s lit about this is their liquidity—which allows us to access our buck after a certain number of years, which can be tremendously helpful in cases emergency.
This may sound a bit corny and “waley,” but whenever you see money with our heroes on it, always remember that one of the ultimate goals is to achieve ‘independence.’ In our case, it’s financial.
Some people achieve this through saving and investing over many years, but one thing is for sure, the best time is today.
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