The Lady Programmer

I realized that someday I will not be able to design nice pages, learn new web design techniques and even write informative posts in blogs that will benefit the readers. It is important that the freelancer should also look into options that enable him or her to earn money without working for it actively.

Personally, I have not discovered how to earn passively until I decided what makes others rich. I asked these questions myself: Is it hardwork? Does it always have to do with inheritance? Is it purely luck?

I learned that there are investment vehicles that the rich people put their hard earned cash in. They earn it through their active income or businesses and their excess funds is spent on buying additional assets: but these assets basically generate passive income.

What are some investment vehicles that are available in the Philippines?

1. Stocks: This is by far the riskiest investment. I have not been able to try investing in these investment vehicles. I am greatly interested in learning how to put my money and interpret the technicalities that I always see on stock tickers and newspapers. If you happen to own some then you might find yourself lucky if this gives a very high yield.
2. Bonds: The least risky investment because it is least affected by market fluctuations. It gives a guaranteed given rate of return.
3. Mutual funds and unit investment trust funds: These investments are a combination of stocks and bonds. Mutual funds are offered mostly by insurance companies while unit investment trust funds or UITFs are offered by banks. There are some mutual funds that are invested mostly in least risky investments while a portion of it is invested in stocks. There are also some funds that are made to be invested more on stocks and a part on bonds. Mutual funds always aim at diversifying funds so that the losses of one fund is covered by the gains of the other fund.

photo credit: OmirOnia (SXC)

I have been able to start myself investing in UITF in a very large bank. I still plan to add more funds to my freelance career, so that I can be able to earn a lot of cash passively.

One Response so far | Have Your Say!

1. 

   Robert
   February 18th, 2011 at 6:14 pm #

   Hi Gem,

   Just found this post of yours in the web. Really great stuff! Thanks for posting. Got any more of these?

   Cheers!
   Robert