Summer is very near and for most of us it means only one thing - vacation. Some will be already booking their plane tickets while airfare promos are being advertised almost everyday (Airline companies really know when to market). Some will be looking for rooms and hotels where they will stay. And some will already be looking for itineraries for the places they will visit. But while some of you are very excited to spend their half-year savings in the coming summer months, some are already eager to start their journey to financial freedom and would like to start investing this summer. Since I am not a certified traveler or jet setter, I have no idea on how much is the average vacation expense. But a rough estimate would be around 10,000 pesos for a three days to one week vacation expense. This already includes two-way plane tickets, cheap room accommodation with breakfast, lunch and dinner and as well as expenses for the places you are going to visit with a little to none left for 'pasalubong' or souvenir items.
Why not start an Investment instead?
Sounding like a total 'kill-joy', why would I suggest you to invest your money instead of having fun on the heat of the sun. First, I believe that vacation on the summer is more expensive compared to other months. It's because there's a surge on demands on the vacation necessities such as plane tickets and hotel or room accommodations that companies and service providers tend to increase the prices due to high demand. Also, people tend to spend more during the summer because almost every friends has been inviting them to join their summer getaways. More invitations means more fun but more expenses as well. Alternatively, you can keep that precious savings of yours, invest it for now and wait for the off-peak months of the year where you can be at peace because what you might be spending instead is the returns of your investments today.
What investments you can start with 10,000 Pesos?
1. Mutual Funds.
I always suggest mutual funds for those people who wants to start investing for the reason that it is very easy to open and there's little time requirement in monitoring of it's performance. Also, the initial capital needed for investing in mutual funds is only 5,000 in most mutual fund companies such as Sun Life. To learn more about opening a mutual fund account, you can read my article How To Open a Sun Life mutual fund account.
If you have time to study the up and down trends of the market and has a higher-risk profile, then you can invest your 10,000 pesos to stocks. They say that once you get the hang of investing in stocks and can almost predict the behavior of the stock market resulting from a variety of factors, then the chances of getting higher returns is at your fingertips. You can now open an online stock broker account from Citisec Online - one of the biggest online stock broker in the Philippines.You can read my article on how did I personally start with stocks.
3. Forex Trading.
Or sometimes called Currency Trading. It is very similar to stocks but instead of company shares, you are buying currencies. One common example is the EUR to USD trading where you buy either of the EUR or USD currency and trade it for the other ones the one you bought has already a higher value over the other. You can start to get your feet wet by opening demo or game trading accounts in Neto Trade or Insta Forex. I personally would like to try this kind of investment as well.
Do you believe in delayed gratification?
Majority of people are being swallowed alive by consumerism.We love to spend everything the moment we get hold of our hard-earned money. But, sometimes there's a more positive effect when you delay the gratification. Money will tend to grow on its own if you know how to do it. I have read several post from friends and co-bloggers that what they spent on their vacation expenses is their earnings from mutual funds, stocks and business. If they can do it, why can't we?
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