Adulting is tough, more so for young adults who spend beyond their means. Easier to be magastos than matipid, right?
Are you a 20- or 30-something who's struggling with finances? A recent study noted that Filipino millennials aren't saving and investing enough, even if they're aware of their future needs. You may have heard it from baby boomers already, but it's worth emphasizing this financial advice: don't just save—invest your money!
If you're not sure what to invest in your twenties or thirties in the Philippines, here are 10 investments for millennials.
Best Investments for Millennials 2021
1. Investing in Yourself
Your own skills and knowledge are your greatest assets besides money. So it makes sense to begin your investing journey from within.
Learn new skills or pursue higher education related to your field to prepare yourself for career growth. Surviving the cutthroat competition in the corporate world is difficult as it is—growing professionally will give you a competitive advantage. With career growth, better income opportunities will open up for you. It's one of the best investments for millennials because you learn something new and meet people who can help you with your goals, too.
If you need some ideas on where to invest 10k pesos in the Philippines right now, start with yourself first through the following:
- Take a graduate degree if you can get a scholarship.
- Take online courses for free or a minimal fee.
- Enroll in a professional certification program.
- Attend seminars and workshops on topics that will boost your career or investments.
- Watch video tutorials on something you're passionate about and would like to earn income from. It's free!
2. Small Business
Minimum investment: PHP 5,000
Why don't you turn your hobby into a money-making venture? Let's say you love fashion, and you always splurge on bags and shoes. You can sell your unused stuff via Facebook and Instagram or run a garage sale. Or if you love baking, you can start a pastry business and promote it online.
A small business is one of the easiest investments for millennials because it doesn't require a huge capital and a business degree. Even a measly bente pesos can go a long way.
If you need additional funding to run your enterprise, you have lots of options to choose from. For one, you can get a personal loan from a bank.
3. Pag-IBIG or SSS Investment Program
Minimum monthly investment: PHP 500 Pag-IBIG MP2 / PHP 1,000 for SSS P.E.S.O Fund
Among the easiest initial investments are the investment/savings programs offered by the Pag-IBIG Fund and Social Security System (SSS). For a low investment of PHP 500 or PHP 1,000, respectively, you can start investing in the Modified Pag-IBIG 2 (MP2) or the SSS Personal Equity and Savings Option (P.E.S.O.) Fund.
Both investment schemes are guaranteed by the Philippine government, which means you have slim chances of losing your savings.
The MP2 and P.E.S.O. Fund are easy to avail, too, as long as you're a registered Pag-IBIG and SSS member who meet the minimum qualifications. You can enroll over the counter at their branch or via their respective online facilities.
4. Variable Universal Life Insurance (VUL)
Minimum monthly investment: PHP 2,000
A VUL is a life insurance plan that doubles as an investment. When you get one, you protect the people who depend on you (your parents or children) against financial setbacks in case something bad happens to you. Plus, you earn profits from the money you put in every month.
What makes VULs a great investment tool for millennials is their liquidity—you can access your funds after a certain number of years, which can be extremely helpful during financial emergencies.
Minimum investment: PHP 5,000 - PHP 10,000
Investments for millennials need not be complicated. As a beginner, you're likely to be wary of taking huge investment risks. This is why low-risk investment channels like bonds are perfect for millennials.
Because of their minimal risk, bonds yield lower profits than other investments like stocks. But investing in bonds is a lot better than putting all your money in a savings account. Bonds have higher interest rates than deposit accounts, so they bring higher returns.
Interested to know more about bonds? Check out this helpful beginner's guide to investing in bonds.
6. Mutual Funds
Minimum investment: PHP 5,000
Investing in the stock market is very profitable, but it can be overwhelming and complicated for first-time investors. It's one of the best investments for millennials, so invest and learn at the same time by putting your money in a mutual fund.
Your money gets pooled with funds from other investors, which professional fund managers invest in different instruments such as bonds, stock market, and money market funds. Because experts handle your funds, you're assured that they will grow in the long term.
Been thinking of investing in mutual funds? Learn the steps to get started by checking out this guide on mutual funds.
7. Unit Investment Trust Fund (UITF)
Minimum investment: PHP 1,000
UITFs are pooled investment funds almost similar to mutual funds. The key difference is that unlike mutual funds, UITFs are investment products offered by commercial banks. Since banks in the Philippines are supervised by the Bangko Sentral ng Pilipinas, you can be sure that UITF investing is safe and scam-free.
8. P2P Lending
Minimum investment: PHP 5,000
You can be a millennial investor by being a P2P lender. If you have PHP 5,000 to spare, you can fund micro loans on P2P platforms like Blend.ph, Acudeen, and FundKo, just to name a few.
As a P2P lender, you fund the amount that a borrower is applying for and earn from the loan interest. This type of investment is quick and easy and only requires a small amount to get started.
9. Website Flipping
Investment: starting from PHP 10,000
Apparently, houses are not the only things you can flip these days. You can also buy websites, fix them up, and then sell them.
Millennials investing in website flipping should have good SEO knowledge and an eye for great content. It doesn’t hurt that you also know how websites work to make them profitable.
Purchase a good niche website, pick a good domain name, and fill it with useful and relevant content. The income potential can be great.
10. Retirement Fund
Minimum yearly investment: PHP 20,000
The best investment for millennials should offer financial stability and protection. Which is why a retirement fund is a good investment.
While you’re still not burdened with financial responsibilities, take this opportunity to save up for your future. Retirement for millennials may seem like light years away, but keep in mind that your earning capabilities will not be the same when you hit your fifties or sixties. So if you’re wondering where to invest 20k pesos this year, consult a financial advisor and start that retirement fund.
Back to the main article: Investments for Beginners: How to Find the Right Investment for You
Adulting is tough in the present, but growing old broke is tougher in the future. As a millennial, you have time on your side. The earlier millennials invest, the better chances of growing your hard-earned money.
Investing regularly will also help you curb your overspending habit. It isn't something you keep on postponing until you reach that age when you barely have time left to build a decent amount for your retirement fund. Explore these low risk investments in the Philippines today.
-  Millennials not saving enough for retirement, study shows (Chua, Rappler, 2014)
-  Term or VUL plan: Making the choice (Jiao, CNN Philippines, 2017)
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