Investing is becoming popular nowadays since more and more people are starting to learn financial education and how they could earn more out of the money they have. I think this is a good indication that more and more people are becoming conscious about their finances. We need more people participating in doing business and investments inside and outside of the Philippines to create more jobs.
Perhaps, you already read the article I made few months ago about the best investment for OFW. I believe mutual fund investing can be one of those great investments that OFW can start because it only requires small amount for opening and does not need complicated knowledge.
Besides from mutual funds, I think there are other good investments that you can start even if you are an OFW or an employee working in the Philippines. I want to make a list of those investments so that you can have an idea which one to choose depending on your preference.
What are the qualifications of the best investment? In my opinion, the best investment should posses the following characteristics to be considered as one:
1. Low capital to start with
2. Non-labor intensive
3. Can give a passive or semi-passive income
4. Easy to learn and replicate
5. Great potential to increase income in the future
Keeping in mind the criteria above, I want to list now what I think to be the best investments available in the Philippines today. Perhaps you already know about it or you have been investing in it for quite sometime. I wish you can get some valuable information here.
1. A blog or website that gives recurring income
Maybe you are not aware that blogs and websites can be one of the best investments you could ever have. I realized that fact when I experienced it myself through the blogs I have right now. The first blog I have is giving me consistently an average income of $400 per month. Hopefully this year, it would climb up to an average of $700 per month. Note that this comes from only one blog, my other sites are not yet there to give me substantial income but I ‘m working on it.
I considered my blogs one of my best investments so far because it regularly gives me income each month without working for it for the whole day. On the average, I think I spend more or less 20 hours per week on the blogs I have. Perhaps, if I could spend more time and focus more on creating good contents and more traffic, there’s no doubt that I can earn more than what I currently getting from my blogs.
2. Stocks that give consistent dividends
Probably the best passive income that you can have is stock that pays consistent dividend. You don’t have to do anything to earn dividends, you simply buy the stocks and that’s it. As long as you hold the stock, you can get earnings from the dividends.
To start buying dividend stocks, you need to open a stock broker account and once you have sufficient balance, you can start buying stocks that pay regular dividends. Currently, I have two dividend stocks, URC and FPH. I’m slowly buying these stocks through cost averaging since I don’t have big money at this moment.
3. Mutual funds from established companies
A friend told me that their equity fund is now earning 20% gain since they bought it one year ago. Although, it is just paper value because they didn’t redeem it yet, it is amazing that this kind of investment gives a good return despite you don’t actually work for it.
The only thing you do when you buy mutual fund is to open an account same as stocks, fund the account with money and then buy certain shares depending on your balance. After that, you have to wait to increase the value or price of the MF you have.
I have a fixed-income MF in FAMI that I bought last June 2011, and it is now 12% gain (paper value) after 8 months of investing there. As you could see, there is a great potential of earning good income from MF even in a short span of time. How much more if you could invest and hold it for 10 or 20 years?
4. Rental apartment or commercial building
One of my friends has a commercial lot and building that he leased to a company and a businessman. Those properties are giving him now a regular passive income each month without doing anything else. However, the cost of acquiring those poperties are big since it is a real estate. The good thing about it is that it earns every month from the rental fee paid by the current tenant.
So if you are capable and have the resources to acquire or buy properties that you can rent to other people, do it so. At first, it is difficult to raise a big amount of money but it is worth the hardships and patience that you will face. Be sure that the real estate can be rented by someone else so it can give you a regular income.
5. Profitable franchising business
A franchising business can be also the best investment you can get because it is already an established business. As a franchisee, you can get all the know-how and strategies in making the business profitable from the learning you can get from the franchisor.
If you are the franchisor, your business will grow faster if you will adopt the concept of franchising. There are many businesses that work on franchising model. Popular fast food chains like Jollibee and McDonald’s offer franchising for people who wants to start their own store.
I think a franchising business can be the best investment for you as long as it is able to give you a steady income and you can get your return on investment for a short period of time. Since it is a franchise, it is not labor intensive. The nice thing about franchising is that you can replicate the business model from the franchisor, make some innovations and then start your own business.
6. Life insurance
Before I didn’t realize that this can be one of the best investments out there. Right now, I don’t have any life insurance but I’m planning to get one this year. I have chosen the life insurance I want to get but still open to changes. I probably finalized my pick when I already have the enough money to start with.
There are three general kinds of insurance: whole life, term, and variable life insurance. At this moment, I’m inclined to pick the variable life insurance because it has investing part and insurance at the same time.
These investments are some of the things I have in mind. Do you have other suggestions not included in the list? If yes, please add your comment below.