8 Ways To Invest Small Amount Of Money

It is a common mentality to people you need a huge amount of money to invest. I’ve been studying and read lots of articles about investments. What I learned is, you don’t need huge amount of money to do so. There are many… for this article there are 8 ways to invest a small amount of money. You can invest as low as A THOUSAND PESO! I know how exciting investment can be, but let me remind you that every financial guru or advisers recommends that we need to have an EMERGENCY FUNDS first!

What is Emergency Funds?

According to Investor Vanguard, An emergency fund is a stash of money set aside to cover the financial surprises life throws your way. These unexpected events can be stressful and costly. Here are some of the top emergencies people face: Job loss. Medical or dental emergency.

8 Ways To Invest Small Amount Of Money

Modified Pag-IBIG II (MP2) Program

The Modified Pag-IBIG II (MP2) Program is an additional and voluntary five (5) year savings facility being offered by HDMF to its Pag-IBIG I members that will provide them with a yield higher than their Pag-IBIG I membership.
Don’t confuse MP2 or Pag-IBIG 2 with Pag-IBIG 1 member. Pag-IBIG 1 member can enjoy housing loans and save retirement through monthly contribution while MP2 or Pag-IBIG 2 is entirely for saving money. It has an added bonus through flexible dividend rate.  You are qualified for MP2 Program if you are a member of Pag-IBIG 1 with a monthly salary of more than five thousand pesos. Even OFW Pag-IBIG members may enjoy this program. 500 peso is the minimum monthly contribution for MP2. You can freely increase your contribution per month. If you feel like contributing a thousand this month and not contributing the next month, it’s fine. You can also quarterly or annually if you’d like. You can enjoy a dividend rate between 5.5% to higher percentage. I think for the 2018 rate, they set it to 8.11%!

Retirement fund (PERA)

PERA or Personal Equity and Retirement Account is a voluntary retirement savings account program that encourages individuals to save and plan for their retirement while enjoying tax incentives both from the amount contributed and the income from investments. It is a personal and voluntary retirement contribution program established by and for the exclusive benefit of the Contributor for the purpose of being invested solely in PERA investment products. pinoymoneytalk.com
Any contributor of legal age who is employed o self-employed in the Philippines or Overseas that is earning an income with a Philippine Tax Identification or TIN is eligible to open a PERA account. The contribution is voluntary. It is up to the contributor how much he/she is willing to contribute. Just bare in mind that the maximum contribution one can contribute is a hundred thousand peso for Philippine residents and two thousand peso for those living and working abroad. More than the maximum amount will not be accepted by PERA Administrator.

Create Your Own Business

In this digital world, you don’t need to have a huge amount of money to invest in your own business. You can start your business from zero to a few thousand peso. All you really have to do is be willing to invest more time and effort to your business. Is it possible? Yes! It is possible! As long as you have a laptop or a tablet or even just a smartphone and a data.
  • Online Selling
You see lots of people posting something to sell online. There are people who start their business by simply spending a 50 peso for their data or for FREE by using Wifi connections from their parents house or public places that has a free wifi. They then find online sellers who are looking for re-sellers. After finding, they copy and paste the products that they wanted to sell to their timeline or Facebook page. Normally, re-seller have a 10-20% markup for each product. But others do markup their products from 50% to a hundred percent! When a costumer orders and pays the product/s, the re-seller place the order and pay to the seller and keep his/her markup. Re-sellers have 2 options. They can order a bulk amount of products they like so they can have an on hand products that they can ship to their customers or they can ask their seller/wholesaler to ship the products for them.
  • Vlogging
Vlogging is a video blog where you create useful video contents for everyone to see. On Youtube, you can see a lot of channels with different niche or topics. You can start vlogging even if you only have your smartphone. Spending money to create your Youtube channel is not necessary. You can create videos that you like and post it on your channel. You then promote your videos to your friends and your friends friend to grow your views and following. As you grow your views and following, many companies will offer you money or freebies in exchange of promoting their company or their products. You may also monetize your Youtube channel by placing ads to your videos.
  • Blogging
What I do is the best example of what blogging is all about. It is owning a site and creating contents for it. As you create quality content, you can gain more readership and visitors every month to your website. You can monetize your blog by simply putting ads on your website or through affiliate marketing. Same as vlogging, companies may also offer money or freebies in exchange of promoting their company or products.

Bank Investments

Bank investment is not as attractive than the others. We both know how low the interest bank offers but having a low interest is better than not having an interest at all. You can start by having a normal savings account to having a time deposit account. Banks offer variety of products such as Mutual funds, UITF and VUL. It is up to you what kind of products do you want to get. You can ask your preferred bank about these products and they can assist you on what product suits you best.

Stock Market

The stock market refers to public markets that exist for issuing, buying and selling stocks that trade on a stock exchange or over-the-counter. Stocks also known as equities, represent fractional ownership in a company, and the stock market is a place where investors can buy and sell ownership of such investible assets. An efficiently functioning stock market is considered critical to economic development, as it gives companies the ability to quickly access capital from the public. Corporate Financial Institute
You can invest a long-term or a short-term in stock market. But before diving in, make sure that you understand what stock market it or even just the basic of it. People say, stock market investment is really risky. Others treat it like a gambling. Yes! investing in a stock market is too risky, especially to those individuals who start investing without even knowing the basics. Investing in a stock market is like driving a car. If you are a professional driver, you can go on a trip to a very low probability of getting into an accident. BUT if you drive a car with little to no experience at all, what do you think will happen??? There is a very high probability that you will get an accident. Worst, a car crash! My advice is simple. If you really want to invest in the stock market, learn and understand how it works. Yes, a thousand peso investment is a small amount and losing it is not that painful. But remember, if you can’t handle your small investment properly, how do you think can you handle your big investment?

Invest In Yourself

This is the kind of investment that many refuses to make. They think that their phones and laptops need more upgrade than them. They think they are already equipped with everything their is because they already graduated. NO! Real learning starts after we graduate. In classroom, you are given a lesson before you can take the test. In real world, we are given a test before we can learn the lesson. If we want to earn more money, we must be willing to upgrade ourselves. Not just in our appearance but also our knowledge. Companies hire us because we posses certain qualities and skills that they need. Learn more to earn more.

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