Investing Tips For Beginners Philippines: The Philippines is full of investment prospects, so it’s no surprise why many beginners and professionals are looking to take advantage of the upcoming investment opportunities in the Philippines. But today, we will be doing something a little different as we dive into investing money for beginners in the Philippines.
Today we will cover the 7 rules of investing money for beginners in the Philippines. These are fundamental steps to assist you as a beginner in investing in the Philippines. Additionally, we will discover the best investments in the Philippines for beginners and explore how you can invest just a small amount of money in the Philippines today.
7 Rules For Investing Money For Beginners Philippines
1. Choose Your Financial Goal & Strategy
The first fundamental step for investing money for beginners in the Philippines is choosing your financial goal and strategy. This may seem like a difficult decision, so let’s explore what this exactly means and how you can do so.
There are many different types of investment in the Philippines. Short-term investments can be as little as a few days or a few weeks. Medium investments tend to be for a few months. Finally, long-term investments can stretch from a few months to many years.
The type of financial goal (how much you want to make & when you want to achieve your goal) will require a different strategy. For example, if you invest long-term for 10 years, your investment strategy may be investing 2000 pesos a month for the next 10 years. Of course, you will need to calculate this to ensure that your monthly contributions match your goal.
Naturally, there are several different types of strategies that you can apply when investing in the Philippines. Some investment strategies will depend not only on your goal but also on what type of investment you are investing in. Therefore, it’s often a good idea to research different investment strategies in the early stages when becoming a beginner investor in the Philippines.
2. Don’t Rely On Only One Source Of Investment
Warren Buffett once said, don’t put all your eggs in one basket when investing. This can sometimes be taken to the extreme where investors invest in many different projects. Often this doesn’t bring in the best returns, so it’s important to diversify but… there is a thing as too much diversification.
In other words, diversification is about investing in different investment vehicles. For example, investing in ten different types of cryptocurrency diversifies your investment but does not diversifies your overall portfolio.
An investment comes down to how much you are willing to invest and your investment risk level. When investing money for beginners in the Philippines, some choose to invest a large amount of their capital in high-risk investments, while others choose lower-risk investments.
3. Use The Power Of Compound Interest To Your Advantage
So when investing money as a beginner in the Philippines, you most likely have come across the term compound interest, but what exactly is compound interest in the Philippines, and how can you use this to your advantage as a beginner investor?
Compound interest is interest on your interest. Many types of investments allow investors to reinvest their investments automatically. In other words, because of the reinvestments, investors can earn money which earns more money, and so on.
Across the domestic and international markets, there are several opportunities for beginner investors in the Philippines. One of the most popular and well-known is the Philippine Stock Exchange which is often a good investment long term and is an excellent investment vehicle when you can use the power of compound interest to your advantage.
4. Start Small And Slowly
One of the most common questions is what is the best investment for beginners in the Philippines. Later on, we will be discussing this very question but once more important than this question is how you will start. And the best way to start is small and slow.
Every single day there are opportunities for beginner investors in the Philippines. Unfortunately, due to the fear of missing out (FOMO), investors can sometimes see investments emotionally rather than logically, which can be very damaging. Psychologically investors are more willing to take higher risks or withdraw their funds earlier due to strong emotions such as fear or greed.
If you are a beginner investor in the Philippines, let me tell you that there are plenty of opportunities in the Philippines and worldwide. In recent times we had the opportunities of cryptocurrencies, followed by nonfungible tokens (NFT), and now new opportunities arise within the metaverse. There are plenty of opportunities, so do not ever feel pressured into rushing your investment as a beginner.
If you are completely new to investing in the Philippines and have never made an investment in your life, then it’s often best to start with a small amount, such as 1000 pesos. You can then stop to see how the market affects your investment, understand your returns, and how to operate the platform you are using.
Most successful investors started small and learned the system before increasing their investments.
5. Read, Research, Analyse, Investigate, Study, And More
Naturally, after discussing the process of starting small when investing money for beginners in the Philippines, the next stage is to understand the market, the investment, and the process. Of course, you may not learn everything there is to know as the market is continuously changing. Nevertheless, knowing the basics and more complicated elements will help you become a better investor.
The type of research you will need to do will ultimately depend on the type of investment in the Philippines. Here are a few examples of areas of interest that you may wish to investigate when investing in the Philippines as a beginner. Please know some of these may not apply to some types of investments.
- Assets And Liabilities Of The Business / Investment
- Company / Investment Behaviour
- Developments Of Technology
- Domestic Market Changes
- Economy Changes
- Foreign Investment And Regulation
- Future Plans And Road Maps
- Industrial Changes
- Latest Statistics And Data
- Political Changes And Announcements
- Public Awareness And Feelings
- SEC Publications
- The Current Market Demand And Supply
As mentioned, these are a few important areas that may not be applicable depending on what type of investment you are investing in. Still, some can help you make a better decision when investing money for beginners in the Philippines.
6. Trust Your Gut And Don’t Always Follow The Crowd
This is perhaps one of the biggest investment tips for beginners in the Philippines. If you are investing money as a beginner in the Philippines, you naturally run into a lot of advice. It can become overwhelming, so it’s always a great idea to trust your gut and follow what you believe to be the best investment option.
It’s no secret that the business and investment world is run on word of mouth and influence. There is a lot of money to be had if you can get other people signed up. This is not to say that all advice and recommendations are bad because that would not be true, but you must question what advice is given and why.
In addition to this, there is an old phrase of wisdom that says that the masses are always wrong. A classic example of this is in the early days of Bitcoin. 90% of experts said that it is a bad investment and you will lose all your money. But for the 10% that did invest, the investment paid off big time.
So to summarise… When taking Information from us, a mainstream bank, a YouTuber, or anyone else, it’s vital to trust your gut and follow the direction you see as the best option for you and your investment. Sometimes the best and highest returns are made in the quietest places.
7. Invest Only What You Can Afford To Lose
You may have heard of this investment phrase previously, and it is a good rule to live by when investing money in the Philippines as a beginner. This is because there is a very real chance that you may lose your investment capital.
The market has been known to swing high and low, which is true for more risky investments such as cryptocurrency. However, historically speaking, some markets have been known to bounce back, so finding the right time to leave your investment invested or withdraw your capital is key. Unfortunately, it isn’t easy to time the market, but certain indicators can help investors estimate what the market will do next.
Best Investment For Beginners In The Philippines
So now that we have looked at a few golden rules when investing your money as a beginner in the Philippines, let us take a look at some of the best investments for beginners in the Philippines.
The best investment in the Philippines will depend on the individual’s financial goal and risk levels. Some investments may be more appropriate for those looking to take higher or lower risks and have a shorter or longer time frame.
Nevertheless, there are 3 great options for beginner investors in the Philippines so let’s look at the best investment for beginners in the Philippines below.
1. The Philippines Stock Market
The Philippine Stock Exchange is a popular investment type for all different Filipinos. One of the major perks is that investors can invest in some of the biggest companies and upcoming corporations in the Philippines market. In addition, due to the publicity, it’s often much easier to fully research stocks in the market, resulting in a more informed decision for investors.
Additionally, the Philippine stock market offers several investment options making it one of the best investments for beginners in the Philippines. For example, one popular type of investment is mutual funds. This is where your capital is split between several different companies or types of investments such as bonds, cash, and so on.
2. In Your Own Business Project
If I had to say which is the best investment for beginners in the Philippines in general, I would say starting your own business is certainly in the top three. But why is starting a business such a great investment in the Philippines for beginners?
The main benefit of starting a new business in the Philippines is controlling and deciding what happens to the business. Naturally, you cannot control the market, but you can control what your business does and what direction your business goes into.
When you invest in companies such as those found on the Philippines Stock Exchange, you, unfortunately, do not have any control over what the business does and the direction the business goes into, which can positively or negatively impact your investment.
Essentially having control of your business direction allows you to earn an unlimited amount of income, and this direction of the business is in your hands.
3. In Real Estate In The Philippines
As we know, over the years, the Philippines has seen a great deal of development across many provinces and cities, and this has made way for opportunities for investing money for beginners in the Philippines. As a result, real estate has been booming in recent years, and the growth looks to continue as we look into the upcoming future.
In the real estate world, location is everything. Some locations offer different types of opportunities depending on what type of real estate you are investing in. Nevertheless, as a beginner investor, real estate is for the long term. Therefore this is often seen as a great investment for the future.
How Can I Invest A Small Amount Of Money In The Philippines?
To invest a small amount of money in the Philippines, you will need to decide where you wish to invest. Most investment options will have a minimum capital requirement. Therefore investors will need to decide on the investment and how much is needed. Once you have an investment option, you can invest directly in the market or with a third-party platform that bridges the investor and the investment.
For example, if you are looking to invest a small amount of money in the Philippines, you may invest in the Philippines Stock Exchange. Stocks have a board lot, which means you will need to buy a minimum number of shares.
For example, let’s say you are looking at how to invest in Jollibee stock. The stock is 225 pesos, but the minimum you will need to buy is 10; therefore, the total you will need to invest is 2250 pesos.
To invest in the Philippine Stock Exchange, you will need to find a stock brokerage. Col financial is one of the most popular stock brokerages in the Philippines. To open an account with them, you will only need a minimum of 1000 pesos. But if you plan to invest in stock such as Jollibee for 2250 Pesos, you already have more than you need to open an account.
Here are some other types of investment options if you are looking to invest a small amount of money in the Philippines.
- Angel Investing
- Financial And Banking Products
- Financial Bonds
- Foreign Markets
- Gold, Silver, Oil, Cocoa, Corn, Sugar, Ect
- In An Online Business Such As A Blog Or Vlog
- Insurance Products
- Mutual Funds And Index Funds
- Nonfungible Tokens
Each type of investment offers slightly different risks and opportunities. Therefore, the best investment for beginners in the Philippines (AKA you) will ultimately depend on your goals and financial risk. Nevertheless, there are many unique opportunities in the current market if you are looking at how to invest a small amount of money in the Philippines.
Is Online Investing A Good Idea In The Philippines
Due to the recent pandemic, much of the financial world embraced working online, and therefore, many modern investments in the Philippines can be made online.
Online investing is a great option for many investors as it has several benefits. First, online investment can be managed globally, essential for investors who make their investment decisions on the latest news and daily developments.
Of course, there are always disadvantages, including security risks and scams, which are unfortunately common in the Philippines. Therefore, when investing money for beginners in the Philippines, it is recommended to fully research every aspect of your investment before investing any money. You may also wish to speak to an independent financial advisor before investing.
What investment gives the best returns in the Philippines
This is a great question asked by many beginner investors in the Philippines. Historically and statistically speaking, the best investment returns have been made from cryptocurrency. Commodities such as oil have recently seen a spike in investment returns.
Unfortunately, the pandemic has impacted many industries in the Philippines. For example, in 2020, the Philippine Stock Exchange dived, but it is slowly recovering as the years have passed.
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