The Top ₱20,000 Investments That You Can Do Today

The Top ₱20,000 Investments That You Can Do Today

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 point 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 five of the best investment options for you.  

1.) 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.

How does it work?

Investing in a well-managed mutual fund will spread your investment over numerous companies in which the fund will be invested. This assortment of mix investments is called a diversified portfolio, which is an effective way to lessen your risk. As long as you have the money to open an account, it’s all good. Additionally in order for you to slowly increase your investment, adding funds as low as ₱1,000  every month is the way to go..

Pro tips

  1. Know your risk tolerance. Your risk tolerance is a measure of how much fluctuation (a.k.a. volatility—ups and downs) or market risk you can handle.
  1. Determine your asset allocation.Once you determine your level of risk tolerance, you can determine your asset allocation, which is the mix of investment assets—stocks, bonds and cash—that comprises your portfolio.
  2. Review the types and categories of mutual funds. Learning how mutual funds are categorized helps an investor learn how to choose the best funds for asset allocation and diversification purposes.

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.

2.) 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.

Another business idea alternative is starting an online business. There’s a realm of possibilities for you to do it nowadays, you don’t even need to have an inventory of items that you want to sell to get started. You can get into dropshipping or print-on-demand with as little as ₱5,000 – of course, this is assuming that you can do everything by yourself – from setting up your store in Shopify, Etsy, or whatever platform to doing the marketing. Then, ₱20,000 will already give you more than enough buffer to get your feet wet and start running your business. 

But before you embark on this journey and 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.  

3.) Stock market 

While it’s true that the stock market can grow your money exponentially, it goes without saying that due diligence in learning the trade must come first. Figuring out how and where to put your money in the Philippine Stocks Exchange can be a challenging feat.

It will take a lot of homework to make a well-informed decision even on your first trade. However, it isn’t as hard as it once was with the existence of  online stockbrokers today. You can easily trade stocks online through COL financial – one of the country’s leading online stock brokers.

Setting an account with online stockbrokers will give you a headstart that you will need.

How does it work?

Buying stocks is like buying your share of a certain company; shares that you won’t be able to buy under normal circumstances. In the stock exchange, you buy shares (stocks) in the hopes that their value will increase over time. Eventually, you sell these shares when their value is higher than your buying price, making them profitable.

Pro tips

  1. Before heading onto the real deal, study everything first. Being too confident in the stock market can be too risky. Try observing first and studying how they play the game.
  1. “Buy Low, Sell High” – this technique is the key to stock investing success. Buy stocks at their lowest and sell them when they’re worth more.
  2. Do not expect too much. Even if the industry is lucrative, you cannot expect to have your money doubled overnight. Of course, just like any other business, it would still require perseverance, time, and patience.

As every professional stocks investor would tell you, expecting that your money will double in a year can lead to heartbreak and tons of frustration. If you opt to invest in this kind of business, think of it long-term; maybe 5, 10 years, that’ll be the safest and least expectation you can have.

4.) Cryptocurrency

Cryptocurrency is a digital asset that is developed and designed to function as a medium of exchange – just like real-life money, albeit – online. It is maintained and managed by cryptography which functions as a security measure.

While Bitcoin may be the most popular cryptocurrency right now, there are other cryptocurrencies that are also on the rise which aren’t as expensive but are equally good. Among the few cryptos that are worth considering are Ethereum, Ripple, Litecoin, Stellar, and a lot more listed in

How does it work?

The cryptocurrency market has been very volatile since its inception. The price of Bitcoin alone can swing up or down hundreds of dollars in a day, and the price more than quadrupled in 2017 and doubled again towards the end of 2020. 

While it does not necessarily promise overnight wealth, it is worth investing for the long term.  Despite the relentless volatility of Bitcoin, its value still managed to skyrocket and stabilize to what it is now (around $30,000) compared to its value since its inception. Plus, JP Morgan Chase forecasted that it will continue to grow up to 10x until 2025.

There is a significant upside to investing in cryptocurrency. That is, the cryptocurrency market is still young, and the most optimistic of investors are projecting future prices that would make buying any of the major cryptocurrencies a good bet.

Pro tips

  1. Be educated enough about cryptocurrencies for you to be able to make informed decisions. Just like other investments, you should be knowledgeable enough in that field before putting any money in it.
  1. Just like the stock market, if you’re acquainted with its trends, you shouldn’t have any headaches – analysis is the key to success in this market.
  1. Trade it for real money. Rather than exchanging your cryptos with cash through your bitcoin wallets and banks, you can save more on the fees if you exchange it with actual people.  
  2. If the cryptocurrency managed to survive after its bubble period, then that crypto is worth considering.

Where to invest in Cryptocurrency?

You can easily invest in 4 cryptocurrencies using You can also top up your account easily through various channels such as Gcash and other prominent payment centers in the country. You can use foreign crypto wallets, but it may be a bit difficult to buy cryptos that way.

5.) Peer-to-peer (P2P) lending

Peer-to-peer lending is a new form of lending and borrowing money that is performed through a platform that connects both the lender and borrower. P2P lending platforms basically aims to help both investors and borrowers. While they may seem like middlemen, the transaction is done independently by investors and borrowers. The platform will just function as a tool for investors to connect directly with the borrowers and vice versa.

As with any investment, there is a risk that comes with this type of investment. However, the reason why these P2P lending platforms exist is to bring down that risk for investors.

How does it work?

Investors can grow their money by accumulating interests for lending their money to borrowers. Dealing with borrowers will be done through a platform to ensure that both parties’ interests are protected.

The interest rates are reasonable and can promise a good sum of return to investors. This may not be exactly a lucrative platform to invest your money on, but it’s secured and can give you a chance to get a higher return on your investment. After all, money is money.

Among the popular P2P lending platforms are the following:

Pro tips

  1. You don’t need to invest millions altogether. The safest way to go is to start slow, as most of these P2P platforms can give you a jumpstart for as low as $25 (₱1, 250.00)
  2. You’ll never know when an investment defaults or flops. Just like with any investment, you should always have a contingency plan in case your investment defaults or flops.
  3. Invest within your risk tolerance. The platform categorizes the borrowers according to their risk level – the higher the risk, the higher the interest.
  4. Even then if the borrower that you’ve chosen to invest in has a low-risk record, it’s still worth doing a complete assessment on their profile before pitching in your funds to their pool.
  5. Reinvesting can be a good move. Try to reinvest your earnings instead of your capital to get more than what you expect.

BONUS: Invest in yourself, learn an in-demand skill online

Take up courses that will teach you valuable skills in today’s business landscape. Remote opportunities are on the rise today and they have provided a good source of alternative income to many Filipinos. In fact, many have made a good career out of online freelancing even established serviced based online freelancing businesses (spell: Digital Marketing Agency). 

The best thing about these opportunities is that they don’t need a formal education (most of the time) for you to get hired. You can learn these skills online and in just a few weeks’ time.

You don’t even have to splurge on courses if you’re just starting out since many of these skills can be learned through Youtube or free resources online. You just need to Google them. 

Here are some of the relevant skills for the digital landscape today that are in great demand:

  • Facebook Ads
  • Content Writing
  • Copywriting
  • Graphics Design
  • Motion Graphics
  • Funnel Builder
  • Software Development
  • App Development
  • Social Media Management
  • Content Marketing
  • Email Marketing
  • Lead Generation
  • Youtube Ads
  • SEO 
  • Customer service representative roles
  • Virtual assistance
  • And etc.

Online opportunities nowadays is a fair game, you just need to equip yourself with the relevant skills.

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