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Saturday, November 18, 2017

7 Ways To Invest and Grow Your Money

7 ways to grow and Invest your Money

Have you ever wondered how you can grow your hard-earned money?

Most of us have limited idea about investing so we rather put our money in the bank. Yes, placing your money in the bank is a good option but not the wisest thing to do. Putting your money in  the bank is a sure way of losing its value over time.Consider inflation, on average, the inflation rate in the Philippines over the past years was about 2-3 percent per annum. 

This means that the value of money decreased by 2-3%  per year. If you put your money in the bank, and the bank had a decent interest rate of even 1% per annum (most banks have less than 1% interest per annum), still your money lost 2% of its value. What a waste! Hence, the best way to maintain and grow your money’s value is not through banking but through investing. The best time to start investing is NOW! The earlier you start, the more gains you will accumulate over time. TIME is the best ally of your investment (Compounding Interest).

Here are 7 simple ways you can invest your money

Stock market Investing

1. Stock market investing (peso-cost averaging)
The most common strategy in stock market investing is called Peso-cost-averaging. In this method, you choose a bluechip company and purchase their stocks regularly depending on your preference- weekly,  monthly or quarterly. You don’t need to watch over the market all the time, what is important is that you maintain a regular schedule to buy stocks so you can take advantage of the ups and downs of the market. The over-all cost of your investment will then be averaged and you will notice that your actual cost is lower. The usual timeline for this strategy is 5 years and above.

During the past years, you need a someone to act as your broker so you can invest in the stock market, but today, there are online brokerage platforms that enable you to invest in the stock market using the internet. Just open an account, put funds into it and then start buying the stocks you want. It is that easy!! The other  good news is in most of these online platforms, you only need 5,000 pesos to start!

Some of the most famous online brokerage platforms are :
3.  BDO Nomura

Stock Trading Investing

2. Stock market trading
Stock market trading is a more technical method. A stock trader is required to watch how the market moves all the time and also needs a significant amount of fund to begin. Stock traders take advantage of even the slightest swings of stock prices over short periods of time. For example, you bought 50,000 units of stock A at 3 pesos per stock. In about 2 hours, the price changed to 3.40 pesos, this may seem a very slight price change but since you bought 50,000 stocks, you can sell those and take a profit of 20,000 pesos less the taxes and fees. Not bad for a few hours or minutes of work right? But of course it takes time for a person to get to that level of trading ability.

Bitcoin Investing
3. Crypto-Currency Investing (Bitcoin)
We have seen how Bitcoin has become one of the most effective modes of investment today. This investment is absolutely high risk due to the volatility of its price. Nevertheless, it has been proven to be a perfect choice if you can bear and manage the risk. The price of Bitcoin has grown by almost 30 times over the last 4 years. If you invested 50,000 pesos in bitcoin in November of 2013, your money will amount to over 1.5 million pesos today! The price of 1 Bitcoin is expected to be over 500,000 pesos before the year ends. It is not too late to get involved in Bitcoin, you can buy now and just wait for the price to go up so you can sell for profit. 

Investing in Crypto Currency Alt-Coins
4. Crypto-Currency Investing (Alt-coins)
Other than Bitcoin, there are other crypto-currencies that also have great potential as an investment. You can buy them today and then wait for the price to grow. Some of the most promising Alt-coins are Ethereum (ETH), Litecoin (LTC), Ripple (XRP) and many more. You can find all crypto currencies at Coinmarketcap Website.

Investing in Crypto Currency ICO
5. Initial Coin Offering (ICO) Participation
One of the most popular strategy in crypto-currency is investing in Initial Coin Offerings or ICOs. Same as Initial Public Offering (IPO) in Stock Market, ICOs are basically the time when new companies introduce their currency and ask for interested investors to contribute any amount. In return, investors will earn Coins or Tokens which they can sell as soon as the Currency is launched. This is a perfect investment that does not require huge funds since most ICOs sell their tokens at very low price. The key is to carefully select the ICO that you are going to participate in. You can find the latest ICOs at Coinschedule Website.

Some ICOs you should consider:

Investing in Mutual Funds
6. Mutual Funds
In mutual fund, you entrust your money to a person or a group of fund managers who will invest your money in  any platform. Each participant or investor in the mutual fund will then share the loss or the gains of the fund. In the Philippines, there are many institutions who offer Mutual funds such as PhilAm Life, SunLife, PhilEquity and many more

Investing in VUL
7. Variable Universal Life (VUL)
VUL is another mode of investment that includes insurance. Basically, it is Investment + Life insurance that can be customized based on your preference.  The same companies who offer Mutual Funds offer this type of investment model.

If you are interested in any of the mentioned investing options, you can ask questions using the comment section below or by contacting the Personal Finance 101 FB Page

You can also send an email at saicoperry@yahoo.com/saicoperry20@gmail.com or send a PM at www.facebook.com/perrysaico.


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