What to Do With The Excess

In our previous post which is about basic budgeting, we were left with an excess budget. It is small since we only have a very simple budget. But then again, it is important to note that no matter how small it is, if it will be accumulated, it will become big later.

So the most logical answer on what to do with the excess would be is to grow it. You can invest it in something else.  So I listed below some ways where you can invest it.

Ways where you can invest the excess

• Self-improvement – Ex. Attend seminar, buy books. One of the best ways where you can put the excess is to invest it for self-improvement. Take note that your most important asset is yourself. If you have the capacity to do more, then you get more. If you know more things, then you can do more things. 
• Acquire assets – Ex. Buy land (depends on what you can use for business). Assets are something that can be useful in growing your business. If you have a land and you are not using it, it is not an asset at all. It only becomes an asset if you are getting income out of it. 
• Creation of passive income – Ex. Invest in websites, loans. Why not start creating passive income. This is our long-term goal, to create more sources of passive income. We will be discussing about this later.  
• Partnership business – If you already have a substantial extra, why not use it in partnership business? Having a partnership business is a good way to start generating extra income.  
• Add it in capital of a small business – Ex. Sari-sari Store. When you plan to start low, then investing it for a small business will also be good. 
• Invest in cooperatives – Ex. Paluwagan I am not sure how do you call this in your place. But cooperatives are helpful source of passive income. Contribute for capitalization, and also get a share of the income. 
• Invest in mutual funds – Ex. Sun Life Mutual funds are becoming big these days. More and more people are getting into it. The good thing is you only have to invest, and experts in investments will be the one to manage it for you. 
• Invest in stocks – Ex. COL Financial If you want a more hands-on acquisition of stocks, then look for reliable brokers who can handle it. 

Note: When investing in mutual funds and stocks, it is best to think “long-term”. 5 years is a good start. 

There may be some other ways that you can think of where you can invest that excess budget that you have. If you are just starting, make sure that your investment counts.