Top 8 Investments For Just ₱20,000

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Avatar for Jhudz1102
3 years ago

These days, ₱20,000 may not sound like much. It’s so easy to just head to the mall and blow it on gadgets, clothes, or food. One swipe of your credit card and it’s all gone.

The 2017 Financial Inclusion Survey by the Bangko Sentral ng Pilipinas (BSP) revealed that only 19 percent of the country’s 68.6 million adults have some form of formal savings. The report also shows that only 9% of adults have bank accounts to save money.

Furthermore, only three percent are investing their money. The survey results points to a lack of awareness about investments and the long term gains of saving and investing money, regardless of whether it is ₱5,000 or ₱20,000.

But if you do it right, your ₱20,000 can grow and make you a small fortune. The big question now is where should you invest your ₱20,000? There are many wise options available, and we have listed down eight of the best investment options for you.  

1) Build an emergency fund

If you don’t plan on spending your money, or if you don’t like risks but still want to be protected in the event of a financial emergency, the best option is to open a savings or time deposit account. You’re in big trouble if you don’t have a savings account and just rely on personal loans to get by every month. It is never too late to start and emergency fund and while you’re at it, try these money saving challenges to help you keep in track.

If you put your ₱20,000 in an emergency savings fund, you have money to spend, one way or the other. And if you keep putting in money more than you take from it, you’re protecting yourself from future financial stress.

2) Invest in Unit Investment Trust Funds

Even with just ₱20,000, you can already invest in unit investment trust funds (UITFs). Not only are UITFs affordable, you also get to have a fund manager to take charge of your money.

Much like mutual funds, UITFs are pooled investments, but at a more affordable amount. They are also liquid, which allow you to withdraw them in the event of a financial emergency.

3) Why not mutual funds?

Mutual funds are a kind of investment that lets you and other investors and corporations build a large fund that professional fund managers will handle for a diverse portfolio of stocks and bonds, as well as securities, mutual funds, and other money markets. When it comes to mutual funds, you let your fund manager make the decisions and pull off strategies that will make your money grow and build up your earning potential until you take in the profit within your target period.

If you consider yourself more of a risk taker, you can invest in bond funds, balanced funds, or equity funds. These are investments in fixed income securities, corporation bonds, and shares of stocks in Philippine companies and the Philippine stock market. If you prefer something short-term with lower risks but higher returns than what you normally get from a savings account, a money market fund will be right for you.

It’s best to determine whether you’re an aggressive or a conservative kind of investor, why you want to invest, and how long you want to put your funds in. Just remember that when it comes to mutual funds, the higher the risk, the higher the return.

4) Get the right insurance policy

Firstly, recognise that your health is your wealth. You need to have a comprehensive health insurance package for when you get sick or get into an accident. If you’re employed, your company will shoulder the costs for both inpatient and outpatient medical care. If you’re freelancing or self-employed, you need to pay for these yourself.

You can always pay on a cash basis, but the amount can leave a big hole in your wallet. You can apply for a BDO personal loan to pay off your hospital bills, but that’s not really how you should deal with medical costs. If you anticipate these kinds of things and get a health insurance, you can rest easy that you’ll have money to spend on hospital bills and medicines. For as little as ₱600 a month, you can already get a ₱500,000 maximum benefit limit.

Another category of insurance that has seen increasing popularity in recent years is variable life insurance (VUL). It is a permanent life insurance and investment rolled into one which means getting covered for disability, death, and living benefits, with an investment combo. Variable basically means investment return that’s dependent on the rise and fall of the market where your premium will go.

5) Start your own business

If you want to invest your ₱20,000 and make it grow, start your own business. You can always set up a home-based business with very low capital, like a small convenience store, or your own barbecue or banana cue stand. You can sell top Filipino favorites like siomai, siopao, cheeseburger, and fried chicken. Even ice candy and halo-halo will sell like hotcakes in this kind of hot weather.

If you don’t want to sell food in stalls, you can sell food products or fashion items online. You only need to focus on finding a supplier, setting up your payment methods, and building your online and social media presence to gain a following.

But before you embark on this journey, before you even pick the kind of business you’ll venture into, ask yourself first if you’re really cut out for it.

You can also tap into your skills and talents. If you like planning and coordinating, you can go into events styling and coordination. You can also pursue more creative but lucrative pursuits, like illustration, writing, design, and even choreography. You don’t need to have expensive equipment to get started, and your ₱20,000 will definitely go a long way.  

6) Learn new things

Take up courses that will teach you skills that will make you more valuable in the workplace. Enroll in workshops that will unleash your leadership potentials.

Attend talks by thought leaders to have a better understanding of the industry you belong to. Sign up for online courses that will help you become better at what you do.   

7) Get a retirement plan

It’s never too early to start thinking about retirement. The earlier you start saving up for retirement, the more affordable your monthly contributions will be.

There will be unforeseen circumstances that will come up as the years go by. It’s an extra safety net to know that in your golden years, you will have money to spend on yourself and your family.

8) Invest in yourself!

The most profitable investment you will ever make is to invest in yourself! Whether it’s books or travel or technology, invest in things that will feed your soul and fuel your fire to perform better in life.

Delve into your creative side to help you grow in your personal and professional life. You can learn a new language, or learn how to cook an exotic dish. Write a memoir, or start a travel blog. Create something from scratch, like a sculpture, pottery, or jewelry. Invest in yourself and fund a healthier and more positive lifestyle.

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Avatar for Jhudz1102
3 years ago


Great article!

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3 years ago

Thank you!

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3 years ago