I think most of us are entirely dependent in our salary. I’d been like that for so long and even until now. But when I lost my job due to the pandemic and be unemployed for six months last 2020, that’s how I realized the importance of having different source of cash flow.
Just imagine, I was able to realized it just now when I’m 25 years old!
Actually somehow I felt regretful on not realizing it sooner but I also think that putting it together with my current investment, it will be hard on my part to financially manage it. That’s why a part of me thinks that having this idea is very ideal right now that I started a new job wherein I had an increase of salary.
Now this year 2021, I consider it one of my priority to establish another source of Cash flow. Even though I still haven’t acquired anything yet, I’m still in the process of saving for my initial investment.
I named my savings as “Business” and you can check it out on this blog!
I’d been reviewing a lot of blogs about the possible passive income streams in the Philippines and I came to break it down into TOP 5 Income Streams that I can consider on having.
These are the following:
1.House Rental
Initial Investment: P300,000- P500,000
This is the first thing I have in mind since our family has been doing it for almost 10 years. As of now we have three properties that are for rent that gives us more or less P10,000 income every month.
I know it look less but having an added income to our family, surely helped us to managed well our finances.
That’s why it’s one of my target business for this year since we all know that investing in real estate is always a “WIN” since it doesn’t depreciates. The more you have properties that you put in “Rental”, it will consistently provide you a means of income for sure. For me, I think it’s ideal since I’m working overseas and it doesn’t requires to be personally there to foresee the business once you start it.
One thing that makes this passive income not suitable for everyone is the initial investment. It requires a big money to start to, so if ever you are planning to have it, you need to start saving now.
Although one have option to look in foreclosed properties since it cost less, it’s still better to carefully check it before buying it. You can check any properties in the Philippines for foreclosure in their website Foreclosure Philippines. Another thing is they can check “Pre-selling Properties”
As of now i’m saving for the mean time as long I’m not decided yet on where will I invest. And if ever I’ll choose this, I think that it will take me two years to achieve it.
Here’s a sample computation of my earning potential just in case I’ll be able to acquire one house rental that cost Php 4,000 every month.
As you can see, investing in real estate is one of the best choice anyone needs to consider. As long as you put it in for business use whether it’s for personal or commercial use, you will surely receive a passive income stream out of it.
2. Food Kiosk
Initial Investment: P60,000- P150,000
In the Philippines, Food Kiosk has been one of the famous business that are now starting to grow. This is because of the small initial investment that it requires.
They’re offering a lot of options that person can choose from. Whether someone prefers beverages or food, just name it and they have it. Their target are those small business owners that can easily venture in a business.
They’re also offering assistance prior to the purchase, from stocks, uniform, training and many more. Having that strategy can help them attract more interests, that’s why a lot of business are working on food kiosk option franchise in a very low price!
Even though this is one of the things I want to venture on, I still somehow feel doubtful since I’ll not be personally there to check it. And if ever i’ll be able to venture in this business I think I need someone to rely on in managing it.
The food kiosk I have in mind are the following:
- Siomai/Siopao
- Sisig
- Tea
- Turo-Turo (Famous filipino street food)
- Takoyaki
3. Pag-ibig MP2
Initial Investment: P300,000
I’d been reading a lot blogs regarding varieties of high yield savings account offers in our country Philippines. Based on my thorough research I was able to discover a very ideal savings which is the Pag-ibig MP2.
Pag-ibig MP2 is a special savings with a five year maturity, designed for Pag-ibig members who aims to save more.
Not unlike the typical time-deposit bank, Pag-Ibig MP2 has a higher dividend rate. You can check their dividend rate for nine years in the table below.
| Year | MP2 Savings Dividend Rate |
| 2019 | 7.23% |
| 2018 | 7.41% |
| 2017 | 8.11% |
| 2016 | 7.43% |
| 2015 | 5.34% |
| 2014 | 4.69% |
| 2013 | 4.58% |
| 2012 | 4.67% |
| 2011 | 4.63% |
As you can see, the lowest rate that they had is last 2011 which is 4.63%. If you’ll compare to other time deposit account, it is still higher than it, since most of them has a rate of 0.025%- 1.50%.
The strategy for anyone to maximize the potential of their savings are the following.
- Choose a one time savings with a higher amount.
- Choose the lump sum option so that the interest that your money earned will continuously gain interest as well.
- Re-invest all your gained interest to maximize the earning potential.
- If it’s possible, make a multiple accounts based on your target goals.
- The earlier you start, the more your money will gain interest in the long run.
This is one of the option I have in mind just in case I won’t be able to go on with the house rental. I also had computed the tentative amount I’ll gained if ever I’ll deposit Php 300,000 with a lump sum option.
Any bank you’ll choose to have a time deposit won’t be able to give you that kind of interest. So this is one of the best option that one needs to consider. You also don’t need to worry the security of your money since it is guaranteed by the government.
Regardless of what will I choose in the future, I’ll still consider this savings due to it’s higher dividend rate. I may not start it sooner but I’ll always consider this option for sure.
4. Franchise
Initial Investment: P200,000- P1,000,000
In the very first place, actually i don’t want to indulge in investing on a business. I know that it will always be stressful no matter what you’re concerning too, from forming your own business or choosing a franchise.
Another things is you need to be physically there to manage it. And me since I’m working overseas, that will be impossible. So the only option I have is to ask for assistance on managing it.
In the blog 10 Best Franchising Business in the Philippines, you’ll see a lot of franchise business option that are well known in the Philippines nowadays.
Below are the top five franchise business in the Philippines.
- Potato Corner
- Siomai King
- Master Siomai
- Zagu
- Mr. Liempo
Unlike common food kiosk, they’re offering more options to the interested individuals. Their business has also been well established for long years and until now they have this competitive advantage to the rest.
5. Online Business
Initial investment: P20,000- P50,000
This is one of the business which requires less amount of capital since everything are taken digitally. You don’t need to have a physical store for you to start it. As long as you think that your product has its competitive advantage and with a unique online marketing strategy, your business will surely boom.
You just need to consider the following things before starting an online business.
- Think if a product that are in demand in a long run.
- Choose a specific market for your business.
- Invest in online marketing for you to make sure that anyone will reach your page/website.
- Build a page or a website that is easy to navigate for first time buyers.
- If you’re a first timer in online business, you can choose to introduce your product by issuing a sample for few influencer that you think are capable to reach out more people.
- If you want to garner consistent users/ followers you can start by reselling famous items first before introducing your own product.
In my case, I would really love to consider this kind of passive income. I also think that it’s ideal since everything are taken care of digitally. Now since one of my goals is to gain followers in my social media accounts, I do think that once I have enough of it, it will help me to easily introduce a product of my own.
Actually I have a quite few things in mind that I can’t share. What important since that I’m in the process of building its foundation for it to happen.
It may took years but I’ll surely share it all of you soon!
Summary
Having a passive income can help people in many ways. Rather than solely rely in your monthly salary, having different stream of income will give you a sense of confidence regardless of any possible financial challenges you’ll face in the future.
Always remember that being employed is temporary only. There will be a time that it will be hard for you to have a job. We are all getting older and it’s very important to manage our finances very well.
As long as you can save, do it! Rather than regretting it once everything are lost, the earlier you can save, the earlier your life will be secured.
You have a choice.
Do you want to be a corporate slave for a long run, or do you want to have your financial freedom so you can live the rest of your life without a fear losing everything?
Now as I manage my finances and plan my future, I’m hoping that anyone will read this will do the same as well.
Let’s work hard now and Let’s both live our life to the fullest!
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