Investment Tips for Beginners

If you're thinking about investing in the Philippines, you may be wondering how much money you need to start. The good news is that you can start investing with as little as PHP 5,000. Of course, the amount of money you'll need to invest will depend on your goals and the type of investment you're interested in. 

For example, if you're looking to buy shares of a company, you'll need to have enough money to buy at least one share. If you're interested in investing in real estate, you'll need to have enough money for a down payment on a property. Fortunately, there are a variety of ways to invest in the Philippines, so regardless of your budget, you should be able to find an option that's right for you.

We’ve put together a guide full of investment tips for beginners, so keep reading!

How to Invest for Beginners with Little Money 

1. Get Started as Early as Possible

The earlier you start investing, the better. That's because the sooner you start, the longer your money can grow. And the more time your money can grow, the more compound interest you'll earn. Compound interest is the interest you earn on your original investment plus any interest that's been accumulated in previous periods. Over time, compounding can have a dramatic effect on your returns. For example, if you invest P10,000 at an annual rate of 6%, after 10 years you'll have P16,288. But if you waited and start investing only after 5 years, your final balance will just be P14,764 - even though you're still investing the same amount of money.

2. Decide How Much Money to Invest

Before you start investing, it's crucial to decide how much money you're willing to invest. This will help you determine what types of investments are right for you and how much risk you're comfortable taking on. If you're only willing to invest a small amount of money, you'll need to be more conservative in your investment choices.

If you need help trying to figure out how much you would like to invest, InLife has come up with an investment calculator that computes for you how much you need to invest in order to reach your financial goals.

3. Understand Your Investment Options

When it comes to investing, there are many different options available. It can be helpful to first understand your investment goals before considering which options are best for you. For example, if you're looking to grow your wealth over time, you might consider investing in stocks or mutual funds. If you're looking for a more immediate return on your investment, you might consider investing in bonds or real estate.

For those with a little more money to invest, another option is to buy insurance with an investment component. This type of insurance typically has two parts: protection and savings. The protection part provides coverage in the event of death or disability, while the savings part allows you to grow your money over time.

4. Be Patient and Stay Consistent

Investing is a long-term game. It’s important to be patient and to not let short-term market fluctuations affect your decision-making process. By staying consistent with your investments and avoiding the temptation to time the market, you can safeguard yourself against making hasty decisions driven by emotions.

Consistently investing a fixed amount of money over time not only builds discipline but also provides a reliable strategy to navigate the unpredictable nature of the market. This approach allows you to take a more holistic view of your investments and make informed decisions based on a long-term perspective. 

Remember, successful investing is a marathon, not a sprint!

5. Seek Professional Advice

If you’re still feeling overwhelmed or unsure about how to start investing, it’s always a good idea to seek professional advice. A financial advisor with expertise in investment strategies and market trends can provide valuable insights tailored to your specific financial situation. They can help you understand the various investment options available to you, such as stocks, bonds, balanced funds, or real estate, and guide you in creating a personalized investment plan that aligns with your long-term goals and risk tolerance. With their guidance, you can gain confidence in making informed investment decisions and maximize the potential returns on your investment.

Insurance policies with an investment component are often more expensive than traditional insurance policies, but they can be a good way to get started in investing in the Philippines.

With a little bit of effort, you can easily start investing insurance in the Philippines even if you don't have a lot of money to begin with. So, what are you waiting for? Start investing today!

InLife has a variety of investment and insurance products that can help you achieve your financial goals. Explore our website or talk to one of our financial advisors to learn more about how you can get started on your investing journey today!