So you just finished a year in your first work – congratulations! Not only have you adjusted excellently into adulthood, but you’ve set yourself up for greater financial stability. Now, the question is: What else do you do with your hard-earned savings?
These days, people are averse to risk. Bonds, stocks, and businesses are all viable options but can lead to unrecoverable losses. In their place, here’s where you can put your first year’s worth of salary:
Property
There are many affordable pre-selling condominiums in Quezon City. Investing in property is a wise choice.
First, you get to own a property with low pre-selling rates. When you risk waiting until you have a family or until you can move out, you also lose the chance to save lots of cash.
Second, you can resell the property for a profit. It’s a long game, but buying during pre-selling and waiting until the unit can be showcased and sold to at market value pays off.
Insurances
Insurances are helpful in times of unexpected financial consequences or untimely sicknesses or deaths. However, young professionals often overlook their benefit because one, they involve a lot of vague, complicated policies, and two, they don’t feel the need yet.
Approach your insurance anxieties by first comparing every insurance provider and the type of insurance they offer. As long as you keep paying your premiums, any coverage should be worthwhile. You can look into VULs or variable life insurances if you want to build an investment component as well.
Government bonds
Certain kinds of stocks hold virtually no risk, like government bonds or retail treasury bonds. These types of bonds are fixed-income investments that have lower interest rates and are issued by the Bureau of Treasury or various government agencies. Some don’t even deduct taxes from the interest payout.
The low risk comes from the fact that the full credit of the government backs these bonds, so your investment is safe unless the state suffers a global financial crash.
Future funds
It’s always a great idea to start saving for life’s milestones when we’re younger. You can put your salary’s excess into building a wedding fund, saving for further studies abroad, or starting your retirement assets.
But where would you put them? If you don’t already have one, you can open a savings account with a bank you trust. Nowadays, banks offer time deposit accounts that have a longer maturity period and a higher interest yield than your usual savings account, perfect for your long-term goals.
Personal improvement
If you have the means, why not invest in the present? Improve your resume, build a portfolio, and challenge yourself by learning new and relevant skills. With your extra cash, you can buy and read self-improvement books, enroll in classes that teach you technical skills, or sign up and pay for online courses that lectures on fields apart from your expertise.
Learn how to build websites, speak a foreign language, or make and design a mobile application. By increasing your stock, you make yourself more valuable and productive.
For young professionals, the real risk is in neglecting to partition their money correctly. So whether it’s investing in the future or the now, make sure your money is making you grow as often as you’re making your money grow.
