Here’s Why You Should Start Investing During A Pandemic

The COVID-19 pandemic got many people spending money on bare essentials, with investing not likely to be considered as such. Most are generally unsure if they should invest their money right now, especially with economies on the decline.

Given the uncertainty of the future, you’ll probably be inclined to save versus shell money out. It’s also possible that you’d think twice before investing in something that involves even the least amount of risk.

But what if investing during a pandemic is actually an excellent move? Take a look at these reasons discussing why it may be a good idea for you to start investing right now. 

1. A recession can present affordable buying opportunities
   
   With investors pulling out their money from stock markets, you may be able to buy stocks at a lower price during this period, especially if historical trends show that a particular company is strong. Commonly, you will find these stocks in the “blue chips” category. But for a more informed decision, be sure to also look at the company reports available.
   
   Then there’s real estate, where rents are rising along with condominium supply. In fact, owning a condo has become more and more affordable, with developers offering mid-end units to OFWs and their families. With monthly earnings of about P30,000, you may already be able to secure a condo unit for yourself.
   
   
2. There’s never a wrong time to secure your future
   
   Chances are, the year 2020 will go down as one of the worst in modern history. All the bad things that recently happened may have made you worried about 2021 and beyond. But as experts always advise, good investing is a long-term affair, and the earlier you make your move, the longer time you have to make your investment work for you.
   
   Take the case of health insurance: logically speaking, getting yourself insured while you’re young and healthy is way better than waiting it out. For one, you can get lower premiums since insurance companies aren’t expecting you to file a claim within the next few years.
   
   By paying low insurance premiums, it may be possible for you to diversify your investment portfolio to include a mix of stocks, bonds, commodities, and so on.
   
   
3. Timing is not the only indicator of a good investment
   
   Aside from timing the market, the type of investment you choose will matter, as well. To have a secure investment, you should learn about the different options that are right for you. If you’re a low-risk investor, you may prefer treasury bonds. These are very secure since the government insures them.
   
   You also need to observe how the country is faring in terms of its gross domestic product. A high GDP means the nation is properly producing goods and services, giving you a signal to invest.
   
   You can also gauge your potential success in investment by looking at employment indicators within your own company. If the company you’re working for is hiring more staff, then more families will have greater spending power, which may be a favorable sign for investors like yourself.
   
   
4. Emergency funds can turn into investments
   
   If you’ve managed to build an emergency fund over the years, you may want to consider using a part of it toward certain types of investments to help you increase your savings. Just remove the more volatile stocks from your list of possible options.
   
   Instead, you would want to reserve your emergency funds for low-risk mutual funds, UITFS, or bancassurance VULs. Since VULs involve adding a cash component to your insurance policy, they can complement your emergency funds by preparing you for whatever tomorrow may bring.
   
   
5. Additional income from online selling means increased ability to invest
   
   Getting into the mind of an investor means jacking up your income stream. One way of doing this is going into a business. Online selling in the Philippines has given many Filipinos an extra source of income. With a minimum capital, you can be an online seller of your own product or another brand.
   
   Your online selling business can be as small or as big as you want it to be. What’s more, your financial gains can be much higher compared with the minimal risks of starting your business from scratch and going about it on your own.
   
   
6. Working from home equals more time to learn about investing
   
   If you have a remote working setup with your company, you may want to devote your extra time toward learning how or where to invest. You can either take up an online investment course or, if you’ve always wanted to go into cryptocurrencies, now may be an excellent time to get started.
   
   Some may tell you that crypto is a dangerous form of investment, but the numbers will tell you a different story. For example, while perceived negatively as extremely volatile, Bitcoin seems to be more resilient than some think, posting only a 5% price drop this year. 

Investing is Hoping for a Better Future

The reasons mentioned all tie up to a simple and meaningful answer to why you should invest in a pandemic: hope. Hope for a bright future. Hope for your children or loved ones. Investing can be a jump-off point to a secure life even in these troubled times if you study your options and establish a strategy to help you achieve a financial breakthrough.

If you were thinking of getting VUL insurance products, BPI AIA allows you to get insured even in a crisis like COVID-19. Consult our Bancassurance Sales Executives online to learn more.