Best Investment for Young Professionals in the philippines

It was better to work years at creating an asset rather than to spend your life working hard for money to create someone else’s asset. (What the Rich Invest in, That the Poor and the Middle Class Do Not!)
― Robert T. Kiyosaki

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If you have money today, what would you do? Will you spend it today? Will you keep it? Or will you invest it for tomorrow?

Young professionals here in the Philippines contributes the major population as the working force. As they say, it it now the age of information and it is a very advantage of young professionals. But, it is not enough to work and earn money. You could work for the rest of your life and left with nothing. It is not impossible to happen if you use your earnings unwisely. It is the time to educate young professionals how to work money for them (not how they work for money) and retire at young age to enjoy life. As Robert Kiyosaki said, we could spend our lifetime to realize or create someone's asset or work for years to create your asset. It is now a matter of choice if you want to stay poor.

Here are the best investments that young professionals can choose. Investment does not mean putting all your money to it. Investments also have risk and good thing about it is that you can invest part of your money. It is best to invest your stagnant money and add it from time to time (not putting all at once).

Reasons to Invest

Every individual has its own reason to invest. For me, investment is also preparing for our future. I have also made small investment from different industries. These reasons could might help you realization to start investing.

1. Investing can help you afford traveling more
2. It’s a good way to develop your money saving habit
3. Higher risk investment items are more appropriate for younger investors
4. Investing earlier will yield more money for your retirement
5. Having paper assets is good for your financial records
6. You will pay smaller tax for capital gains of your stocks

Best Investment for Young Professionals

If you have your own financial adviser, you can took advise to them. They took time to analyse how investment works and they will offers investment base on your lifestyle and investment that is in. But, if you don't have, then this guide could might help you.

1. Insurance or VUL (Variable Universal Life Insurance)

Minimum Investment: approximately P2,000 -P3,000

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They say young professional should consider this investment. It is a must i you want your family will be ensured financially in the future. VUL is a type of insurance bundled with investment. With this, you can have death benefit and same time your are investing.

Tips

1. Do you really need life insurance?.
2. How much do you need?
3. Get Quotations and Plans from Insurance Companies
4. Avoid Additional Insurance or Add-Ons
5. Get an Independent Financial Planner
6. Get it now
7. Stable

2. Stocks

Minimum Investment: P5,000

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Most people will not consider investing in stocks because they don't know about it. So, they are missing the opportunity and making their cash stagnant in a bank. The key for this is to educate yourself about stocks and make your money grow exponentially. Investing stocks will allow you to buy shares from the company which is impossible for other circumstances.

Buying stocks is just like you lend your money to the company as the shares will become the exchange. The money will be used to the development of company. The problem with this is that your income is based on the performance of company itself. Researching about the company will be a great advantage.

I also started investing in stocks from 5,000 pesos and my broker is COL financial. We need broker like COL financial and Metro trade to have a link between you and the stocks exchange. It is quite impossible for use to trade directly to stocks exchange with broker because it needs a lot of money.

Tips

1. Learn everything you can
2. Know your risk profile
3. Buy Low Sell High
4. Don’t expect money to double soon

3. Mutual Funds or Balanced Funds

Minimum Investment: approx. P5,000

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Mutual fund is an investment company registered with Securities and Exchange Commission (SEC), which pools money from many investors creating a massive fund under a common objective. This fund is then invested to another forom of securities to achieve its goal.

If you don't want to worry about the money you invested, then it is ideal for you. It is safe because the experts will handle you investment and you just wait for the profit.

Tips

1. Go with Competent Fund Managers
2. Add Regularly
3. Assess Risks
4. Set Goals and Objectives

4. Small Business

Minimum Investment: approx. P5,000

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This investment is the one that each of us should try. A lot of us did not try this because they fair to have failure. Well, failure is good. Failure is part of success. A person must not be successful if he/she don't even know to how fail. You can start small business with your passion. If you like watching movies, then you can have movie rentals. Or maybe if you are good at something, then you can have small business that involves services.

The problem with this is that people don't want to risk, don't want to fail. They were restricted by the thoughts of failure.

Tips

1. Find your passion
2. Do Market Research
3. Secure Funding
4. Build a website
5. Network with other people
6. Consult Experts

5. Real Estate (Foreclosure Properties)

Minimum Investment: P10,000 -P15,000

Tips

1. Be Goal Oriented
2. Learn as much as you can about Real Estate
3. Attend Seminars
4. Join or start your real estate investors club

6. Cryptocurrency

Minimum Investment: P1,000 (Depending on the cryptocurrency platform)

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If you are steemit platform, then you know cryptocurrencies. It is a digital or virtual currency that people on the internet used for trading and paying. It uses cryptography to ensure safety for traders. It it legal but other countries prohibit their people in trading cryptocurrencies. The top cyptos are bitcoin, ethereum, litecoin and ripple. Bitcoin is mainly the most well-known type and all crypto except bitcoin are considered altcoins (alterantive for bitcoin).

Most crypto coins are decentralized. There are lot of platform that can be use to exchange or trade cryptocurrencies (I am using bittrex for trading).

Tips

1. Educate yourself
2. Treat it as you would the stock market
3. Invest in Fund Management Platforms
4. Use it to solve problems
5. Crypto to Money

7. Forex Trading

Minimum Investment: P25,000 (Depending on the cryptocurrency platform)

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Forex is short for foreign exchange. It is a currency trading. It is a decentralized global market in which the major currencies of the world are being trade. Forex trading is the largest and most liquid market of the world with an trading volume exceeding to $5 trillion daily. So, if you want a very high profit in a short time go for forex trading. But, the risk is also very high. If investment has a potential of yielding high profit, then it has a potential also of a high risk.

I have attended an orientation on this investment but I did not pursue. It needs high capital to get a adorable profit and very high risk. Your trading profit is a correlation of your capital. And about the risk factor, taking high risk investment will gain high profit but this time on my profile I can not take the high risk and pursue forex trading.

Tips

1. Choose a broker wisely
2. Choose a methodology and be consistent in application
3. Choose your entry and exit time carefully
4. Perform weekend analysis
5. Practice Makes Perfect

Here are the resources:

1. https://www.moneymax.ph/blog/reasons-filipino-millennials-should-invest
2. https://grit.ph/best-investments/