Did you know increasing your money while preserving your time is possible with passive income?

Here are five potential sources of passive income to think about in the Philippines, among the many other choices available:

1. Real estate investing. Real estate is one of the most well-liked methods of generating passive income in the Philippines. This might involve investing in a real estate development project or purchasing and renting out homes. Finding properties in desirable neighborhoods with the potential for high rental yields or long-term value growth is crucial.
2. Investment in the stock market: Stock market investing is another well-liked method of generating passive income in the Philippines. This might involve purchasing certain stocks or mutual funds. Do your homework and invest in businesses that have a proven history of development and success.
3. Investing in a business: An excellent way to get passive income in the Philippines is by investing in a business. You have the option of investing in a startup, buying a franchise, or starting your own business employing management to operate it. Finding an organization with a sound strategy, a capable management team, and a booming market is crucial.
4. Pagibig MP2: A voluntary savings program is open to all PAG-IBIG Fund members, and with a minimum monthly contribution of Php 500, you can choose to invest any amount of your choosing. Eventually, the earnings from the investments made by the PAG-IBIG Fund and your contributions will mount up. You are eligible to withdraw your cash after participating consistently for at least five years.
5. Online income streams: Online revenue sources are one of the most adaptable ways to generate passive income. This might include launching a blog, affiliate marketing, designing and delivering online courses, or monetizing a YouTube channel. The goal is to choose an area of expertise and generate great content with the potential to attract a large audience.

In the Philippines, there are various ways to earn passive income. The trick is to choose a strategy that corresponds to your interests, abilities, and financial objectives. It’s also important to remember that every type of investment has risks, do your due diligence and research before investing.

Financial literacy is the capacity to comprehend and efficiently handle money.

It covers a wide range of financial principles, including budgeting, saving, investing, and debt management. Sadly, financial literacy remains a serious issue in the Philippines.

Many Filipinos lack the information and skills necessary to make sound financial decisions, resulting in financial instability and vulnerabilities. This limits their capacity to learn about financial goods and services which makes it harder for them to save, invest, or acquire credit.

The lack of financial education in the Philippines could be for the following reasons:

• There isn’t yet a comprehensive financial education program or a required subject in the school curriculum today.
• Poverty and low-income levels, for example, make it harder for people to prioritize and buy financial goods and services. The recurrence of investment misrepresentation and fraud happens often victimizing vulnerable groups in favor to get-rich-quick schemes despite the government efforts and advisories.
• The media and marketing messages that favor quick pleasure and consumption above saving and investing.
• The low level of financial literacy is also influenced by cultural factors from family, and friends, and frequently turn to them for financial guidance. However, they themselves are not equipped enough to give sound financial advice and this could result in a loss of independence in financial decision-making as well as a lack of confidence in financial institutions.
• The role of informal financial systems, such as pawnshops and loan sharks online that you can get cash in just few taps, that do not promote financial literacy or responsible financial behavior.
• People’s inclination to rely on financial goods and services they may not completely comprehend, which might lead to financial troubles later on. A lack of awareness of the risks and rewards of various financial goods and services.

The best thing we can do to improve our financial literacy as individuals is to take matters into our own hands by doing research, learning, and understanding the basics of money.

We’re starting a series on everything related to finance that would be simple to understand, get started with, and most importantly, to promote financial literacy. It can help you be equipped to make wise financial decisions, knowledge of various sorts of investments, and create a more secure financial future.

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Managing your money is not an easy task. You need to earn money first then save it and invest it. At the same time, you need to handle it well so you won’t end up broke.

We want to help you have a more effective and efficient ways in how to manage your money.

1. Set financial goals

You can list your personal financial goals for the year then divide it per month. This method can help you become hyperfocused into what financial goal you want to achieve in that specific month. Also it will serve as a guide into how you will budget your income to attain and maximize your other financial goals whether it is short term or long term such as savings and investment.

2. Create a budget

Before receiving your salary, it would be better if you can budget it first. You can start with 80% for expenses that can include your budget for rent, bills, food, transportation, and insurance while 20% for savings there no such thing as a small savings but you can also increase it slowly.

3. Build an emergency fund

You can start as low as P500 per month and you can save P6000 in a year as your starter emergency fund. It may be small at first but you can work to increase it month by month.

4. Pay your debts

One of the recommend ways to get out of debt is prioritize the debt with high interest then you can proceed to the next debt with the highest interest and so on. Debt can be a cycle but you have the choice to work on your budget in order for you to get out of it.

5. Educate yourself in the basics of finance

Read personal finance books. You can also start research on the internet about the basics of finance from income, budgeting, credit cards, savings, investing, insurance, to estate planning.

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Are you looking for a different source of income?

Don’t worry we’re not here to sell you something but we want to guide you in looking for an income source that could work for you.

Millennials to Gen Z have been exposed to the hustle culture of today and it seems it’s the new norm for some to have a full-time job in the morning (at the same time trading stocks) or some work part-time in the evening. While others are doing online selling as a side hustle to earn extra.

We now live in an age where one income cannot suffice our needs alone and if you have a family that relies on you for their survival more likely you need to have a higher income. We compiled 5 common income streams in the Philippines.

1. Earned Income

Usually the main source of income for most people in the country. This is what you earn from working a job whether it is a full-time or part-time job.

2. Profit Income

If you engage in buying and selling products you get what is called profit income. The best example of this is online selling on platforms like Facebook, Instagram, Shopee, and Lazada.

3. Interest Income

This income comes from lending out your money at interest. It could be placing your money in bonds for years or if you like to take risks and you have trusty friends you can lend your money to them at an interest rate.

4. Capital Gains Income

If you have bought land 5 years ago, chances are the land value has increased by now and it is what is called capital gains income. It could also be in stocks but it is more volatile depending on the turns of the market.

5. Dividend Income

In the stock market, if you have a stock of Company A, they give annual dividends to their shareholders but it will be based depending on the number of shares you own and this income is called dividend income.