How to properly invest your PHP100,000

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If you have PHP100,00, don't just stash it under your bed or leave it in a savings account in hopes that it will earn big interest.


Reality check: These days, PHP100,000 isn't a lot of money.

On top of the necessities you have to pay in order to run a smooth household and live a comfortable life, prices of basic goods are rising and services are compounded by heavy taxes.

But if you do manage to save P100,00, don't just stash it under your bed or leave it in a savings account in hopes that it will earn big interest (hint: it'll only earn a negligible amount every year).

Invest it.

A bit of research can prove that a good investment can earn you a huge percentage of what you've initially put in, even if your money won't be accessible to you for a certain span of time.

Here are a few options to consider:

Fixed-rate bonds

What are fixed-rate bonds?

According to The Balance, "bonds are loans made to large organizations." You're basically lending money to these institutions in order to fund some of their projects. Fixed-rate bonds are those that earn the same interest throughout their term.

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How do you earn from fixed-rate bonds?

As with every loan, the loaner (read: you) earns from interest. The best bonds to go for are those that give more than 5 percent annual interest rate, so, if you put in PHP100,000, you earn PHP5,000 a year until the maturity date, or the date when institution you lent your money to should give everything (plus interest) back. Now, that may not be a lot at first glance, but remember that savings accounts in big banks only earn an average of 0.1 percent per annum; a rare few offer until 0.75 to 1.56 percent per annum, and that depends on how much you put in.

Here's a good example: In April 2019, SMC Global Power Holdings Corporation offered a total of P30-billion worth of fixed-rate bonds, with three terms: a three-year option called Series H, and a five-year option called Series I, and a seven-year option called Series J. Series H will earn you 6.8350 percent a year; Series I, 7.1783 percent a year; and Series J, 7.6 percent a year.

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Here's how much your PHP100,000 can possibly earn for each series:

  • Series H - PHP6,835 a year; PHP20,505 in three years
  • Series I - PHP7,178.30 a year; PHP35,891.50 in five years
  • Series J - PHP7,600 a year; PHP53,200 in seven years

Not bad at all, right?

How to you "buy" fixed-rate bonds?

The government and corporations usually announce their offers via the media, but if you're good friends with your bank, they can give you tips prior to the announcement so you can get first dibs. Institutions usually publish a list of banks where you can get your bonds from, so just keep your eyes peeled for the business sections of newspapers and legit websites.

A small franchise

If you're interested in becoming your own boss but you really don't want to start a business from scratch, getting a small franchise is a good way to get your feet wet. There are many franchises with franchise fees that go below PHP100,000, but of course, you have to remember that you still have to spend for other things, such as government permits, rent (if needed), and the salary of your employees.

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Requirements when applying for a franchise

Franchises usually require the following:

  • A letter of intent
  • Personal identification
  • Location information (inclusive of a sketch and average foot traffic a day)
  • Marketing plan

The processing of your application usually takes a month to a month and a half. Of course, you'll still have to take in consideration you and your crew's training period as well as the construction of your stall.

How can you earn from a franchise

You earn through sales, after required costs such as inventory and royalty are subtracted. Given this, you may not break even and earn until a few months or even a year down the road, and that's normal. As long as your stall is in a location that has a lot of foot traffic, and you have a good product and interesting promotions, you will get back the money you invested and more.

Room for rent via platforms like Airbnb

If by this point you already have your own space, or if your family home is often empty and unused, you may want to try renting out a room through platforms like Airbnb.

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How do you get your property listed on Airbnb?

Before you get your property listed on Airbnb, you will first need to get the necessary permissions for the property you want to get listed as well as the paperwork that go with process.

You will also need the appropriate business permits, and pay the taxes that go along with them.

Once everything is down pat, you will want to invest in refurbishing certain parts of your property. Remember that Airbnb requires essential amenities such as baths and toilets (inclusive of toiletries), proper beddings, and the like. You'll also need to provide your guests with tools, such as fire extinguishers and first-aid kits.

After getting a few good photos of your place, you can now get it listed.

While pre-listing tasks may seem daunting, remember that it's okay to start small. You don't need to compete with other Airbnbs with top-notch rooms for the time being. If you only have PHP100,000, work within the budget, and slowly make improvements as you go along.

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How do you earn from Airbnb?

Your guests pay you through the platform itself, and after subtracting booking fees, Airbnb will pay you after 24 hours.

In a previous Female Network article, Airbnb host Julia Quisumbing reveals that she earns PHP40,000 to PHP50,000 a month by renting out her unit. While she initially shelled out a lot money since she had to buy the property first, she reveals that she used around PHP100,000 to furnish the unit. (Imagine if you already have the property and the basic amenities, and you will only need permits and have it refurbised.)

As long as you take into account the hosting costs, which, according to Investopedia, include "cleaning, higher utility bills, taxes and Airbnb's host fee, which is 3 percent for payment processing," you can expect return of investment in a few months' time. For more inspiration, you can read Julia's story here.


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