“If you are born poor it’s not your mistake, but if you die poor it’s your mistake”
The world’s richest man from 1995 to 2017, Bill Gates said this and in a way I agree with it.
We can’t really choose what financial status our family will have when we are born. It’s not as if our parents had the resources that are currently available for us now. Way back then, they are mostly just concerned about working and providing for their family presently.
Only a few are able to invest for their future and those are the ones who are living in a comfortable life now. Some can even spend their whole life without working and still have money to spend.
If you belong to those who have to work to live, don’t fret. With dozens of resources within our reach, it’s easy to take your first step into financial stability for your future. All you need is your determination and will.
Invest in Time Deposits
If you are having a hard time saving you money with a savings account, then you can take a look at time deposits. It is considered as a low-risk investment and it usually has an interest rate of 0.25% to 1%.
Unlike having money in a regular savings account, in a time deposit bond, you can’t withdraw your money anytime until the agreed “time” or time maturity is done.
Experts’ Tip: If you are looking for a low-risk investment with an almost-guaranteed return of investment, time deposit may be for you.
Invest in your Emergency Fund
You’ve heard them say this a million times. Have an emergency fund that is equivalent to at least 6 months of your average monthly expenses. For when an “emergency” comes, you will be ready, hence the name.
Easy to say, hard to do, right? When the majority of the people today don’t even have enough to pay for their monthly bills, saving up for 6 months worth is a difficult effort. A difficult, yet important effort that is.
Experts’ Tip: Looking at the full amount of funds you need to save can slow you down. Instead, focus on being able to save P500 to P1000 per month for your emergency fund.
Invest in Mutual Funds
With a minimum investment of P5,000, you can start with mutual funds. If you find that investing in the stock market is overwhelming and too expensive, then mutual funds may be for you.
In mutual funds, your money gets pooled along with the money of other investors. Professional fund managers will then invest it on different portfolios like stocks or bonds. Your money will be distributed to different instruments and will be handled by professionals, assuring that it will grow in the future.
Experts’ Tip: If you are overwhelmed with all the things to learn when investing in the stock market. This is a great way to start. Some people call mutual funds investment on auto-pilot.
Invest in UITF
Unit Investment Trust Fund or UITF is a kind of investment that is roughly like mutual funds. The money from different investors is handled by professional fund managers to make it grow.
The key difference of UITF from mutual funds is that big companies invest through banks and then investors buy “units” from the companies. This is another investment option where you can just leave it and wait.
Experts’ Tip: If you are reluctant to invest in mutual funds, UITF might be better for you. Since banks offer this, and banks are all handled by Banko Sentral ng Pilipinas, then you can rest assured that your investment will be scam-free.
Invest in a Life Insurance
Everybody wants to have a better future. When you secure a life insurance policy, you are not only investing for yourself but for your family as well.
Life insurance makes sure that if you have an accident or develop an illness rendering you not able to work, then your family will still get money that you are not able to provide anymore.
Experts’ Tip: Talk to a different financial advisor to know your options, do not let commercials or peer pressure force you into buying one.
Invest in a Small Business
Businesses do not have to have huge capitals. Thousands of people your age have already started their businesses with what they have. Who’s to say you can’t start yours?
With the rise of technology, having a business is not as complicated as before. Now, you don’t need to have a brick and mortar business, online businesses can be your option if you will.
Experts’ Tip: Start with your passion. What do you like doing? Look for like-minded people and figure out what you can offer them.
Invest in Yourself
What have you done today that your future self can be proud of? Nothing? Then it’s time to change that. Investing in yourself has a lot of benefits, some of them include helping you start a business, or helping you learn new skills to level up your job.
Sit down and assess your life, what aspect of your life do you think needs more improvement? Start there. List the things you can invest or learn for yourself.
Experts’ Tip: Start online. Look for like-minded people and find the online groups they are in. Start learning there. You can also opt for learning sites like Udemy.
Invest in your Family
Now, this last tip does not necessarily have to include money. However, it is often the most neglected investment in a person’s life.
Sometimes, when we get too caught up making money, we tend to forget the things that matter most. Time spent with your family can be the greatest and most valuable investment yet.
Experts’ Tip: If you have kids, remember that they are just going to be young once. Balance everything out and don’t let yourself be too caught up with making money.
There you go, here are 8 kinds of investment that you can try to make sure you don’t die poor. Does it sound morbid? Sometimes, taking precautionary steps is the way to go.
Like what they always say, prevention is better than cure. So in this case, investing is better than having to get a loan when you need money.