Small-Scale Investing for Beginners: A Simple Guide

Investing can seem daunting, especially for those with limited financial knowledge or resources. That’s besides the common misconception that there’s always the risk of losing absolutely everything when you ‘invest.’ This might be farthest from the truth, because there are ways to invest your money that are low-risk, with fun involved.

Here are two accessible strategies for small-scale investing for beginners:

High-Yield Savings Accounts

One of the simplest and safest ways to start investing is by opening a high-yield savings account. These accounts offer significantly higher interest rates compared to traditional savings accounts.

By depositing your money into a high-yield account, you can earn a decent return on your savings without taking on significant risk.

In the Philippines, accessible high-yield savings accounts are available in digital banks as they often offer competitive interest rates, making them a great option for small-scale investors.

Flipping Items

If you enjoy the thrill of finding deals and reselling items, flipping can be a rewarding venture.

This involves purchasing items at a discounted price and reselling them for a profit. Online marketplaces and social media platforms provide excellent platforms for finding potential items to flip. Sounds familiar? Yes—this is basically what your favorite online ukay-ukay does, and you should, too. It doesn’t even have to be clothes.

However, it’s essential to research trends, pricing, and the condition of items before making a purchase.

Successful flipping requires a keen eye for value, negotiation skills, and a willingness to put in the effort to source and sell items.

Small-scale investing can be a rewarding way to grow your wealth. Opening a high-yield savings account or flipping items are both good ways so you can grow your small capital. If you want, you could also do them both at the same time to provide a balanced approach to investing.

Starting small and gradually increasing your investment portfolio is a very good and a very low-risk strategy. However, it’s still important to research and understand what it is you are getting yourself into. (GFB)