Want to enter the world of investing but do not know where to start? Fret not! This article will feed your curiosities about investment as this is catered to teach investing opportunities such as stock trading and real estate investing for beginners.

Engaging yourself in the world of investing not only grows your money, but hones your skills specifically in decision-making, risk-taking, and organizing. Money easily comes and goes. This is why it is essential for everyone — most especially the youngsters — to keep their interests soaring about the field of finances. Your future lies in your hands. Therefore, to all of the students, teenagers, and beginners, this is your sign to start planning for your future through financial investments!

“Let us say that you are financially free, what are the things you would do?”

For sure, this question made you pause for a second or two. It is really hard to imagine a world without ever considering the value of money. Some might answer that they would be traveling to different countries and some might be splurging on luxurious items.  

It feels good to envision yourself living a bountiful life in the future. A life where money does not seem to be a problem. A life full of ease. 

Why is Investing important?

Investing Provides Financial Security

Investing and stocks for beginners are essential to achieve financial security. Diversifying the allocation of your assets and budgeting your funds is important to prepare for your future, most especially for your post-retirement life. Financial preparedness serves as a safety blanket to protect yourself from future risks and emergencies that may come along the way. It is also a way for you to attain success and it really would not hurt to plan for your future as early as today!

Investing Teaches Independence

Immersing yourself in financial matters is very important for you to learn how to be independent and organized. It also gives you a clear vision of your goals, as well as the steps you are about to take in order to make those dreams into a reality. It also hones your skills when it comes to decision-making and financial resiliency. 

TIP #1: Download and answer this printable worksheet titled “My S.M.A.R.T Goals” to help you visualize and to guide you on how you want your middle-aged life to turn out

Common Terms You Must Know in Investing

Are you still overwhelmed with what investment is? Fret not! Listed below are some of the common terms used in generating passive income. Familiarizing yourself with these words would serve as your ultimate guide as you venture more into the world of investing!

Stockbrokers

A stockbroker has to buy, sell, and trade stocks from a company to its stockholders. Stockbrokers may be in the form of an individual or a firm.

Dividends

Dividends are also a way to earn profit through stock investment. It is a company’s shared profits to its shareholders.  It comes in different forms such as through cash, stock, and property.

Technical Analysis

Analyzing charts and trends are essential in stock trading for beginners. Hence, Investors must acquire analytic and decision-making skills in order to thrive in the field of investing. Candlestick patterns, for example, are used in deciding about the price trends, the market, as well as when and where to buy and sell stocks. 

Risk

Investing is not always rainbows and butterflies, which is why you must gauge how risk-tolerant are you when it comes to investing your money. In line with this, higher-risk investments equate to higher returns while lower-risk investments have lower returns. 

TIP #2: Answering Investment Risk Tolerance Assessments help you determine what your strengths and weaknesses are in creating your investment strategy!

Investment Avenues

Listed below are some ways wherein you can easily and accessibly start your investing journey!

Stock Investment

Minimum Initial Investment Deposit: Php 5000

Stock trading for beginners may seem overwhelming. But do not worry, it is just as easy as 1, 2, 3! Engaging in stocks makes you a part-owner of a company, making your earnings depend on the financial success of the company you choose to invest in. Therefore, It is considered as a high risk, high reward type of investment.

Tip #3: Enroll yourself in online courses such as stocksed.com. These types of courses target to teach stocks for dummies. It provides learners with basic knowledge about the Philippine stock market. Stocksed.com’s approach in educating people about the stock market is catered to Filipinos. The courses are taught using a mix of both Filipino and English languages, making it easily understandable for Filipino students and beginners to learn about the investing field.

Bonds

Minimum Initial Investment Deposit: Php 8000

In contrast to stock investment, bonds are described to be of low risk with low reward. Your earnings would not depend on the success of the company, but would rather give you a fixed amount over a certain period.

GInvest

Minimum Initial Investment Deposit: Php 50

This feature of the GCash app is the most simple, most accessible, and most affordable way for beginners to begin their investment journey! 50 pesos, a smartphone, and the GCash app are all that you need to start growing your money. The app also gauges how much you are willing to risk in order to guide you with the right investment option.  Lastly,  it also provides a hassle-free cash-in and out system given that everything’s accessible in GInvest. 

PAG-IBIG MP2

Minimum Initial Investment Deposit: Php 500

Part of the PAG-IBIG program, this second cheapest option offers a tax-free, risk-free, and a short-middle term investment plan. PAG-IBIG MP2 is a voluntary program wherein one can earn through dividends — a portion of a company’s profit through dividends. 

SSS PESO Fund

Minimum Initial Investment Deposit: Php 1000

The SSS PESO (Personal Savings and Equity Option) Fund is a voluntary investment program wherein all SSS members are eligible to apply. It caters to people who want to make the most out of their post-retirement life. It is risk-free and tax-free, wherein earnings are accumulated through compounding interests. 

VUL Insurance

Minimum Initial Investment Deposit: Php 1,300-1,500

Combining insurance and investment in one, it is ideal for parents to apply for their children in order to safeguard their future such as their education. These types of insurance are handled by fund managers. Hence, making it ideal for beginners who have little to no knowledge about investment. VUL insurances allocate 5% to the cost of insurance, while 95% goes to investments. Just like stocks, it is also high in risks as it does not guarantee returns. 

Real Estate Investing

Minimum Initial Investment Deposit: 20,000 pesos

Similar to stock trading, real estate investments are also dependent on a firm’s shares for earning, but in the form of properties and lands. Real estate investing for beginners might be a bit challenging compared to the others mentioned in this article, which is why it is considered to have a high-risk high reward ratio. It is ideal for long-term investors given that it deals with properties, such that land appreciates through time. Investing in rental properties that comprise this type of investment is the most ideal investment for starters. 

Mutual Funds 

Minimum Initial Investment Deposit: 5,000 Pesos

Mutual funds are the collated investments from different allocations such as in stocks and bonds. Investing in mutual funds is one of the most ideal for starters given that skilled financial investors would be the ones to handle and decide for the best investment options to increase your assets. 

UITF 

Minimum Initial Investment Deposit: 5,000 Pesos

Unit Investment Trust Funds (UITF) are for long-term plans and are considered to have a high-risk-high-reward ratio. UITFs affect your share earnings as it is dependent on the fluctuation of interest rates and the performance of the market. 

Let us All Invest for the Best!

Now that you already have a grip of what investing is, it is high time for you to decide what investment strategy works best for you!

Investing is an avenue for us to grow our assets. It also serves as a safety blanket to secure and provide for our financial needs that may suddenly arise in the future. Wealth investment has become more accessible all throughout the years, that is why it is important to provide opportunities in investing for students and beginners. Investing in your finances is a great step towards increasing financial literacy. Given the listed investment opportunities above, there are lots of ways for you to allocate and diversify your income. You just need to gauge what works best for you.

So what are you waiting for? Venture into the world of investing to grow your money and to live your life fully!

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