Thanks to the introduction of low cost-investing, the answer to this question is really up to you. It is now possible to invest with as little as P50 – yes we’re serious – but each person will have their own considerations for an amount that is comfortable for them to invest with. The good news is, you have options!
You don't need to save for a share price
Some shares are more expensive than others. In fact, shares with high share prices are often appealing shares to own. We’re looking at you Amazon and Alphabet! But just because you don’t have the amount needed to invest one whole share, that doesn’t mean you can’t invest in it at all. Fractional investing allows you to invest in a portion of a share, while still getting the benefits of being a shareholder. Even though a share’s price might be, say P10,000, you’re able to invest in and own P100 of that share (or any amount you want).
Waiting has a price too
Getting stuck on the idea that you need to have a certain amount of money or lump sum before you start investing could be putting you at a disadvantage. Instead of waiting for your ship to come in, why not captain your own right now? If you can start investing straight away with small amounts, you are giving yourself the opportunity to learn as you go and build your confidence, without large amounts of money at stake. You’ll also reap the benefits of any returns you make on those small investment amounts, which add up.
Lump sums or monthly bits
Some people reckon investing 10% of your take-home salary each month is winning, but even if you can get to 5%, that’s really good going too. Other people prefer to invest chunks of money as they get them – like when you get a tax rebate or some money as a gift.
So what is the best investment strategy of them all? It’s the one that is going to work for you as a lifestyle and a behavior you can maintain. If substituting what you would normally spend on one cappuccino each week with money that you invest instead is what works for you, do that. Even if it is just P500 a month to begin with. But if you’d prefer to wait for that work bonus so that you can put P5,000 in all at once, power to you!
