Smart investment tips you should take note of

The question on every investor's mind is: what smart investments should I make in 2022? Savings or stocks? Or is real estate the key? There are many ways an individual can invest but it all boils down to one basic tenet: buy low, sell high. Keep on reading for smart investment tips to take note of!

How to invest smartly

1. Do not simply rely on the money you have at hand. Before you start investing, you need to have an emergency fund. You can start by putting away a small amount every week or month, then try increasing that to 10% of your earnings after things are going smoothly enough. Once you have enough saved up for an emergency fund (this is typically 3-6 months’ worth of living expenses), you can put the rest of what you save into investments.

2. Another investment vehicle you can look into is a corporate bond. Corporate bonds are offered by corporations which they use as a means to earn money. Short-term corporate bonds have a maturity from one to five years, depending on the bond fund. This makes it less prone to interest rate fluctuations, making it a relatively low-risk investment.

3. If you have the money, real estate is also a smart investment to make in 2022. Because everyone needs a home, it’s unlikely for the demand of homes to ever go down. You can purchase a real estate property, such as a condo unit, and have it rented out so you can earn passive income each month.

4. Consider an insurance policy with built-in investment features. An investment insurance in the Philippines such as the one from InLife allows you to grow your savings by investing it in your choice of variable unit-linked (VUL) investment funds. With this type of insurance, you get to reach your financial goals while knowing that you and your loved ones are protected should anything happen to you.

Whatever investment vehicle you choose, remember this: do not be afraid of risks. No investment is 100% risk-proof. So instead of running away from risks completely, find an investment with the amount of risk you can tolerate. Risk tolerance is a very personal thing. Someone with a bit of a financial buffer is more likely to have a higher risk tolerance, while one who is hard strapped for cash may prefer lower risk investments. Take a step back and analyze your financial situation objectively so you can choose an investment vehicle suited for you.