Find a property, quickly! GET PRE-APPROVED LOAN CALCULATOR

how to start successful ofw investment opportunities


OFW Investment Opportunities: Start to Successful Investments

August 19th, 2021 | Share via:

Working abroad is a decision that should be taken seriously. It is an excellent time to explore not only to buy properties such as affordable house and lots, but also to delve into OFW investment opportunities. There are two primary reasons why Filipinos decide to go overseas. The first has to do with personal intentions like taking career advancement and earning more for the betterment of the future of one’s family. The second option is to take on a new challenge, gain new experiences, or work outside your comfort zone. Working with people of different backgrounds exposes you to a variety of working methods, forcing you to hone your communication skills and gain confidence as your career progresses. Teams at global corporations, for example, are typically made up of experts from all over the world, allowing you to practice cross-cultural communication.

While opportunities abound for Filipinos overseas, job security is not guaranteed. That is the reason why investing is important, most especially if you are an overseas Filipino.

Investment plays a crucial role in our financial stability. It helps us prepare for our future and makes us financially ready for whatever financial problems we may encounter. Savings and investments act as a buffer to safeguard a household against a financial dilemma.

The next thing to know is how to start investing.

Tips on Investments

Photo by Anna Nekrashevich from Pexels

1. Create a financial strategy

The first tip on investment is creating a financial strategy. Investing for the sake of investing is not a good idea. You must first comprehend the situation in which you find yourself. Make a list of financial goals and devise a strategy on how to achieve them, including how long it will take you. Otherwise, you'll be squandering your money on something you don't fully understand and will come to regret your hasty decision.

2. Determine how much money is needed for your goals

It's necessary to know how much each of your goals will cost and how long you'll take to achieve them while creating your financial plan. This combination of cost and timing puts your strategy into motion. The next question is how much money you'll put up to achieve your objectives. To avoid investing frauds, you must conduct proper research. Know the specifics of any investment choice you're considering, whether it's a mutual fund, a company franchise, or a government-sponsored savings program.

3. Invest regularly

Investing regularly is an effective risk management technique, particularly in long-term stock investing, when share values increase and decrease. It also pushes you to put money away for your financial goals. Investing regularly, such as once a month or at predetermined intervals throughout the year, can pay off. It enables you to take advantage of ‘pound cost averaging,' which entails purchasing into the market at various periods and profiting from both high and low prices.

4. Constantly educate yourself

Having the right knowledge is an important tool when you are planning to have investments. You will be able to make better educated and correct judgments to optimize and secure your earnings if you continue to study and gain new information about investing. Investing can be scary at the start, but with the right information, it will be worthwhile.

If you're wanting to start investing soon, be sure you're prepared ahead of time and have thoroughly researched all of the advantages as well as the potential risks it might include.

Always remember that it is preferable to enter a scenario that you are prepared for to prevent needless complications. You must define your objectives and devise a plan to attain them. There's no reason to rush anything you don't think you're ready for. Take it carefully and examine all of the mechanics ahead of time so you may take preventative measures. The more you educate yourself, the more you’d likely make judgments that align with your financial goals.

Photo by Lukas from Pexels

5. Secure emergency funds

The significance of creating reserve money before investment cannot be emphasized sufficiently. Investments are unpredictable. While investing is necessary, there is always a chance of the returns being lower than expected, or you may incur a loss if needs to be withdrawn unexpectedly. The money invested can be kept undisturbed by the buffer fund since there is a fund you may use in case of emergencies. Three to six months' worth of spending should be a solid emergency fund. There is a lot of unexpected and unforeseen events in life, so emergency and rainy day funds would come in handy.

6. Have social circle support with the same objective

Evaluate your circle of friends. While you must be aware of net worth and intelligent financial transactions, remember that your immediate social circle is heavily impacted by you, too. By having a support circle, it is easier to stick to your goals. Join community groups with like-minded people such as Peso Hacks Community, PESO SENSE, and The Global Philippine Investors. Or better still, spend some time in meetings with folks with a positive financial outlook. Try exploring various friendships with individuals you may never have had. Over time, you will build friends who encourage positive financial success. Remember, your environment and the people around you can influence your growth and success, so make sure that you are in the right circle.

7. Avoid instant gratification

This is the final investment preparation approach and it's a huge strategy. You need to hold your desires and wishes strongly. You have to dominate them. It is human nature to feel that certain things are inevitable to want. We notice tickets for aircraft on sale, hobbies, and passions, and can give in quickly.

Are you going to purchase the item impulsively? Are you strong enough to postpone your wishes, or do you pay immediate attention to them?

One of the most effective tools that an investor must possess is impulse control. While you're contemplating a purchase, one of the most obvious ways to tell if you have it or not is when you're thinking about it. Do you have the self-control required to resist giving in to every passing urge and want?

If so, you'll not only have the resources you need to invest, but you'll also have the self-control you need to deal with the market's ups and downs.

Maintain your composure. Practice with Delaying Gratification.

Knowing how to start investing is only the first step. Now, you are ready to take it to the next level and start investing. So, what OFW investment opportunities can be taken by Filipinos abroad?

OFW Investment Opportunities in the Philippines

Photo by Skitterphoto from Pexels

1. Mutual funds

An investment that combines investors' money to buy stocks, bonds, and other assets is a mutual fund. In a mutual fund, a wider portfolio will be created than the ordinary individual investor can. Professional fund managers have mutual funds that purchase your securities. Mutual funds have a lower risk than the purchase of assets because the investment is diversified. You don't depend as much on the performance of a single firm. You have much more inventory to safeguard your investment if one of the firms fails.

However, research into mutual funds still takes a long time. The fund managers are changing to make it worse. When this happens, even if the industry is performing well, it can impair your fund's performance. This is crucial as managers are constantly changing their stocks. It may not reflect current ownership, even if you look at this prospectus. You don't know exactly what you buy, therefore you rely on the manager's knowledge.

2. Stocks

A stock is one of the popular investment vehicles. When you buy stocks in a firm, you're buying a little portion of that company called a share. Investors buy stocks in firms they believe will increase in value. If this occurs, the value of the company's shares rises as well. After then, the stock can be sold for a profit. by becoming a shareholder, you get ownership of a portion of the firm. Investing in stock, in general, is a long-term commitment.

A hands-on approach is unquestionably required if you want to earn substantially from stock investment. One of the most significant advantages of stock market investment is that you do not have to worry about management as much as business owners do. You don't have to deal with genuine business problems since you don't make any choices in the actual firm in which you hold shares. While you will need to watch the stock market, you will have more time and leisure to do other things. You should examine every stock you buy, including a thorough dive into the corporation's sectors and financial assets.

3. Crowdfunding

Crowdfunding is a type of fundraising in which you collect modest sums of money from a big number of individuals, many of whom may be interested in your project or company concept.

This might easily be called "solicitation," in the words of the layperson. Do you remember the tiny basketball teams in your barangay begging you to put their jerseys in or to sponsor them? This is essentially so but it's all done professionally, of course.

The multi-platforms or applications of crowdfunding take place online. The folks who will support your initiative or company concept may or may not demand anything in return. However, if a corporation or a group of individuals finances your business, anticipate them to demand an income share or equity.

4. Small business

Small business ideas provide a wonderful starting point for newcomers, bootstrappers, or anybody with a busy program and allow you to start up a side business without everything else that needs to drop.

You still need a strong idea, a brand, a strong marketing campaign, and outstanding customer service. However, many typical start-up expenditures may be avoided, such as early stockpiling, storage, and retail space. What’s good about having a small business is that you can be your boss and manage everything by yourself.

5. Real estate investment

Owning a real estate property is more than just a luxury. It is a key to short-term and long-term financial growth. Short-term, you’ll be able to enjoy possible tax deductions and enjoy the monthly rent that you should pay to a landlord. Buying a house and lot is an investment you’ll be glad you did!

Real estate is a popular investment choice for a reason. Real estate investment requires attention and planning, but when done correctly, it offers a variety of benefits.

Most people invest in real estate for a steady cash flow in the form of rental income. This passive income is a great motivator, encouraging many to buy their first rental property. Depending on the location, you can earn considerable income to cover your expenses and generate a lucrative income. Cities or towns with colleges and universities, tend to have higher incomes because the demand in these areas is always high. This is the same for locations near commercial establishments as well as for high tourism areas. Investing in townhouses for sale in progressive areas would be a good start for real estate investment.

Take a quick drive to the Lessandra community in Central Luzon, Lessandra San Jose, or South Luzon in Lessandra Sto. Tomas.

Inside Lessandra homes. Find a great real estate investment with Lessandra.
Inside Lessandra homes. Find a great real estate investment with Lessandra.

Aside from location, one of the important factors to consider is the developer. Choose a reputable real estate developer like Lessandra so you’d be assured that you’d be getting your money’s worth and so much more. With affordable house and lots for real estate investment in more than 40 communities nationwide, you have a wide choice for your property’s location.

Final Thoughts

Making a clear and well-defined financial goal is a great place to start when it comes to investments. Knowing what you want to achieve will help you create a realistic plan of action that will satisfy your requirements. The ability to establish your own business or participate in the stock market and the other investment vehicles is merely the beginning. There is a lot to learn and do to minimize risks and keep your hard-earned money safe. After all, how much you are willing to earn rather than lose determines your ability to achieve your goals and dreams.

Investments certainly play a key factor in attaining financial security. Investment is more than just having cash as your start-up, it additionally calls for passion and dedication.

Lessandra is an affordable house and lot developer offering maaliwalas home spaces nationwide. To know more about affordable properties in Lessandra, visit the Lessandra House Listings. To find out how to buy a house and lot in the Philippines, read A Buyer’s Quick Guide on How to Buy a House and Lot in the Philippines.