3. Stocks and Bonds
When you invest in the stock market, you acquire shares and own a part of a company. Meanwhile, investing in bonds is like loaning money to large companies or the government. When the bond matures, you get paid the principal amount you invested, plus interest.Like mutual funds and UITFs, you can start investing in stocks and bonds for as low as ₱5,000. You can also have your investment managed by a stockbroker or your bank. The more stocks you buy, the more shares and participation you will get.
Why should you invest in the stock market?
Investing in quality stocks offers higher returns compared to other investment options. It increases your chances of achieving your financial goals and enjoying passive income.
With careful financial planning and a deep understanding of the risks, stocks can be a wise investment for seafarers that can cover future needs like your retirement fund.
Why should you invest in bonds?
Bonds are less risky and less volatile than stocks, making them good investment options for those with low risk tolerance. Bonds have periodic interest payments called coupon payments, providing a steady stream of income annually, semi-annually, or quarterly. When your bond matures, you will also receive the principal amount you invested.
You can add the earnings from your coupon payments to your emergency fund. This will help you avoid dipping into your savings during rainy days.
4. Business
Investing in a business is another way to maximize your income. You can open a retail store or acquire a franchise from an established brand. Starting a business requires capital, careful study, market research, innovation, and continuous learning. It's important to have someone trustworthy to manage the business while you're away.
Wondering what business to get into? Here are some ideas.
Vending machine
This business requires little supervision, so you don't have to worry about managing a large team of employees. You can assign a family member to handle tasks such as processing necessary permits, sourcing products, and managing the installation, maintenance, and repair of the machines.
Vending machines come in different types, like coffee, snacks, drinks, or a snacks-and-drinks combo, among others. A snack vending machine costs at least ₱90,000, while a vending machine offering both snacks and drinks costs at least ₱250,000. Prices vary based on the vending machine's size and display capacity.
Choose a location with high foot traffic, such as schools, hospitals, and office buildings. Once your business picks up and starts earning a steady income, consider expanding to new locations.
Food franchise
If you're new to the food business, a franchise is a good start. You can jump behind a known brand, reducing the risk of starting from scratch. Food franchises range from famous restaurants and fast-food chains to food and beverage booths. Consider your capital, target market, business location, and brand reputation when deciding.
Franchise fees vary depending on the brand. Franchising restaurants and fast-food chains can cost at least one million pesos. But you can start with smaller franchises. A siomai brand's franchise package costs ₱280,000, while a popular french fries brand's package starts at ₱325,000. In addition to the franchise fee, prepare to set aside capital for construction, manpower, and additional supplies.
Like any other investment, franchising entails risks, so make sure to research and plan thoroughly before launching your business.
Car wash
With an estimated start-up cost of ₱50,000 to ₱200,000, you can set up a car wash business. You'll need pressure washers, cleaning materials, a reliable water source, and a staff of two to four employees to get your business up and running. You can set up your car wash business in a fixed location or make it mobile to accommodate various clients.
5. Health and life insurance
Your best investment, ultimately, is yourself. Your health and safety are important so you can continue working, living your life, and providing for your family. Invest in a health and life insurance plan to protect your loved ones from the financial burden of a health-related emergency. By doing so, you are also safeguarding their future and providing them with the financial means to achieve their own goals.
BPI AIA's MedLife Protect Plus offers medical coverage, plus life insurance benefits worth up to 90 times your premium. It also allocates a portion of your premium to expertly managed, peso-dominated funds. With its cost-efficient plan and wide range of benefits, MedLife Protect Plus puts your mind at ease.
To find out more about MedLife Protect Plus, visit the BPI AIA website.
When making any type of investment, the higher the risk, the greater the reward. Feel free to consult with a financial advisor to identify investments that align with your current financial capacity and personal goals.
