How to grow money Philippines: When it comes to personal finances in the Philippines, there are many questions. However, the biggest questions are – how to make money in the Philippines and what is the best way to grow your money in the Philippines?
If you are a beginner at growing your money, you will be pleased to know that there is a process and system that can help you successfully grow your finances. Additionally, there are opportunities within the market to expand your net worth and even double your money.
Therefore today, we will be exploring a beginner’s guide on how to grow your money in the Philippines and discovering 7 key ways to grow your money in the Philippines as a beginner.
How To Grow Your Money Philippines
Before you start to grow your money, it’s important to understand the stages behind money expansion.
Stage 1: The original income. Where are you getting your money from? Are you a business owner, an entrepreneur, or an employee?
There are no right or wrong answers here. But naturally, the stronger your income, the better position you will be in to grow your money in the Philippines. Once you have your income/ideas for an income, we move on to the next stage.
Stage 2: To successfully grow your finances, you must first create a gap between your income and expenses. This stage is vital when growing money because this additional cash will allow you to invest, save and grow much quicker.
Stage 3: Planting Money Seeds: This stage is full of opportunities and decisions. The actions and decisions you make can help you grow your money in the Philippines, so what actions and decisions do you need to make?
This is the last piece of the puzzle, and as this is the most important part of growing wealth, it deserves its own section. So let’s take a look at 7 ways how you can grow your money in the Philippines.
7 Ways How To Grow Your Money In The Philippines
1. Grow Your Money Through The PSEi
Historically, one of the best long-term investments in the Philippines is the Philippine Stock Exchange. So it’s no surprise that many are turning to the PSEi to grow their money.
The great thing about investing in the Philippine Stock Exchange is that the Stock Exchange is full of opportunities. Some investors have blue chip stocks (the largest corporations in the Philippines), while others prefer a different approach and instead focus on mutual funds.
One of the best ways to grow your money through the Philippine Stock Exchange is to reinvest your dividend payments. Many financial advisers recommend reinvesting as compound interest takes over, which is very powerful in investing.
So now we know that making money on the Philippines Stock Exchange is possible. The next question is how?
For a full guide on stock market investing for beginners, feel free to check out our beginner’s guide. However, to summarise, investors will need to sign up with a stock trader (such as Col Financial), add funds to their account, and purchase the stock.
Once you have completed your investment, you can then decide on the future of your investments. Several investors focus on long-term growth with the Philippine Stock Exchange, but if you are looking for a quick sale, you can sell this via your stock brokerage. As mentioned, the decisions and actions we make will impact how we grow money in the Philippines.
2. Grow Your Money With The Bank
Recently we explored the best saving accounts in the Philippines. Saving your money is not the best long-term strategy for making money in the Philippines; however, saving is a key skill and a great way to grow your money over short periods.
But more recently, investors in the Philippines are looking at alternative options to grow their money with the banks. As a result, various banking products, such as dollar accounts, unit investment trust funds, and PERA, have been introduced over the years, which provide opportunities to investors looking to grow their capital.
Whether you grow your money with a bank or other type of investment, it’s always key to find out the extra costs or hidden fees (such as selling fees, etc.) as this can eat away at your profits.
Banks have many investments and products but do not offer the highest returns in the industry. Nevertheless, their investments are often much safer. Customers are also protected under consumer protection standards, so it’s always good to have some spare cash in the bank when diversifying your portfolio.
3. Grow Your Money On Youtube
Can you make money on YouTube? Unfortunately, there is a massive misconception about earning money on YouTube, and it needs to be addressed.
The size of your channel (the views and subscribers) does not impact how much total revenue you can make from your channel. Recently we explored this more when we looked into how much money you will make from 1,000,000 views on YouTube.
For example, I have a very small channel of only 1100 subscribers, but I make around 9,000 pesos monthly from it! How? Because the channel makes money outside of advertisement, I focus on highly profitable video content.
As a content creator, you can find the type of content that generates the most money. For example, a video about travel will only make me 190 Pesos per 1000 views. But a video about health insurance will make me 845 Pesos per 1000 views.
This is a real case example, but of course, there are other factors to consider, such as the viewer’s country and the niche’s overall competitiveness.
Nevertheless, what is true is that it is possible to grow your money in the Philippines using YouTube. Social media is one of the Philippines’ most popular forms of communication. To reach the masses, it is essential to utilize the power of social media.
4. Grow Through A Small Business
If you are someone who likes to have a little more control over your money, then growing your money through a small business might be a more suitable option.
There are several different types of small businesses that start in the Philippines. Starting a business is not always the most challenging but requires certain knowledge – the knowledge is the most difficult part as we don’t know what we don’t know.
Therefore you may wish to check out our full guide on conducting market research in the Philippines, where we explored your options and how you can use data and statistics to grow a small business in the Philippines.
One question asked by those looking to grow their money is, is it better to invest or start a business in the Philippines? Of course, there is no right or wrong answer; however, many will benefit by first growing their own business and later investing.
The reason for this is due to control. With a business, your actions and decisions will impact how much money your business makes. Naturally, there are other factors to consider, such as the general market and the demand. However, the market and the demand are all out of our control.
In other words, business owners have much more control and direction of their money and how much money they can make.
Interestingly another option for those who wish to start a business but do not have the time is to run a passive business. Passive businesses do not need 24/7 attention (such as a blog), so this may be a more suitable business idea to grow your money in the Philippines.
5. Grow Your Capital With Real Estate
One popular method to grow your money in the Philippines is through real estate investing. Real estate investing can take many forms, including commercial real estate, houses and lots, or even car parking spaces.
Unlike other forms of investing, real estate possesses additional value.
For example, gold is a fantastic investment, but you cannot live in gold, you cannot eat gold, and you cannot wash with gold. However, with real estate, you have a home. Somewhere to live, sleep and eat, and therefore, it’s no surprise that real estate investing has become increasingly popular across the Philippines.
When you look to grow your money in real estate, it’s important to decide on your plan of action. For example, what are you investing in, when will the returns be, and what is the overall strategy.
Experts often recommend investors build an investment plan similar to a business plan. This includes risks to the investment or the industry, opportunities within the current market, and fees and expenses that must be considered.
Another advantage of growing your money in the Philippines real estate is the magical world of leverage. Leverage deserves its own category, so we have explored the magical world of leverage below.
6. Grow Your Money With Passive Income
Passive income is a great way to make long-term money in the Philippines. As the market has grown, there are numerous ways to make additional income through passive income streams.
We recently published a beginner’s guide on earning passive income through cryptocurrency! So there are many options for new and experienced investors looking to earn passive income.
Therefore what type of passive income is right for you, and how do you start making money from passive income in the Philippines?
The best passive income for an individual will come down to experience, financial goal, and risk level. However, most prefer flexible passive incomes such as stocks, cryptocurrency, P2P lending, and so on.
To earn money from passive income, you will first need a plan. One consideration during your initial plan is how hands-on you wish to be. In the Philippines, there are several passive and semi-passive investments.
For example, earned income from the Philippines Stock Exchange is passive. But earning money from a blog requires continuously new content in the early days to grow; therefore, it is more of a semi-passive income.
7. Grow Your Money With Leverage
As mentioned in #5, we have reached the wonderful leverage world. Leverage is a tool that can take you from point A to point B much quicker.
Here in the Philippines, we use leverage every single day in one form or another. So, for example, we can leverage other people’s time, leverage other people’s money, leverage other people’s skills, and so on.
Many different types of leverage can be used to help you grow your wealth in the Philippines at a rapid speed. However, on the other side of the coin, it is important to note that risks are involved.
Leveraging is also a great tool for becoming bankrupt if mishandled. Therefore it’s recommended to fully research the process of leveraging and how to use it in the modern world effectively, but how can you grow your money with leverage?
One of the most common forms of leveraging is borrowing other people’s money. Let’s say, for example, you wish to make your money in real estate, but you do not have the money. What can you do as an investor….
… one option is to borrow the funds. Then, as your real estate portfolio increases, you can start to grow your money in the Philippines much quicker, as the compounding effect also aids in your rapid growth.
This is a simple example that goes to show just how significant the buying power of leverage can be.
If you are trying to grow your money in the Philippines and are in a position where you find that very challenging, a question I have for you is, can you use leverage?
I know that leverage is very scary, especially if you have never used leverage before. But, can this can be done on a small scale? Perhaps leveraging other people’s skills or experience? Of course, leveraging has advantages and disadvantages, but in the modern world, leveraging is more powerful than many people know.
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