My generation often gets the blame for everything these days.
Millennials are killing the soap industry, the diamond industry, the golfing industry, and so on, never mind that two out of those three industries are too expensive for those of us subsisting on minimum wage in an economy that the Boomers ruined, right? Jokes aside, there is one industry that we’re dying to get into, but can’t seem to buy in regardless of how often we lay off the avocado toast: the real estate market.
If you can’t afford to buy diamonds or go golfing every weekend, you aren’t likely to buy your own place anytime soon, hence most of us either live at home or continue to blow thousands on rent every year. Talk about being stuck between a rock and a hard place. So, what’s a millennial to do with what relatively meager savings s/he might have? Blow it all on Etsy? Buy a ticket to Coachella? Of course not.
Instead, you can grow your savings into something more substantial through any of the following asset classes:
Owning a portion of a property company is the next best thing to owning actual property, and the stock market is where you can do just that.
For as little as Php5,000, you can open up an account with COLFINANCIAL and begin buying up shares of stock from some of the country’s most profitable firms. You can even top up your account with any amount once it’s been set up, and if you invested in companies that occasionally give out dividends, you can reinvest them here too.
We’ve published an article on the basics of the stock market, and you can read more about it here.
These are like stocks, except that there’s a guaranteed payout at specific intervals. Investors also typically get the principal back upon the bond’s maturity.
Government bonds are among the safest investments out there, but they’re only recommended if you have a fair bit of cash and are looking to ride out a particularly volatile market.
3. Fixed Interest Bank Accounts.
Considered to be far more appropriate for millennials who have little to no experience in investing, these bank accounts offer a higher interest rate provided that you don’t touch their contents for a certain length of time.
Different banks offer varying interest rates for corresponding holding periods, so you may want to canvas for options should you want to go down this route.
Given how expensive houses are these days, saving money can be quite demoralizing. What difference would an extra Php1,000 make in one’s ability to put a down payment on a house, after all? Still, it’s enough to help build momentum, and in the long journey towards sustainable wealth, we’ve all got to start somewhere.