Future Value of P1,000 Per Month Investment
Want to know the future value of P1,000 per month investment? Here in InvestmentTotal.com, I write different topics about finances so that the readers will decide if they will invest their money or not. The future value of a particular investment will discuss in this page.
A P1,000 per month investment will be worth millions if it is invested wisely in a good and safe financial products such as mutual funds, trust funds and even direct stock market investing.
What would be the value of your money after you have invested in an investment vehicles will determine by knowing the future value of your investment? Interest compound calculator is very useful in determining the future value of a specific investment capital.
In investing, the investor should be aware of the risk involve, he should not only focus his mind in knowing the future value. He should analyze the risk especially when he invested his money for long years. Of course, the aggressive investor will gain much money compare to the investors who are taking low risk type of investments.
Knowing the future value of an investment capital whether the investors is investing by cost averaging or lump sum is very important. It is important because you will identify if the certain investment vehicle will meet your financial goal.
An investor should have financial goal, purpose and plan why he is investing his hard earned money. An investor should also analyze which investment vehicle is the best to help him in achieving his financial goal. Before you will invest your hard earned money, make sure you have a plan, goal and purpose.
Plan: How much you want to set aside in your investment funds? Will you invest the funds, in stocks, mutual funds or in any banks UITF? When is your plan to start investing and when do you want to redeem your investment?
Goal: A goal must be specific. A goal must be realistic. A goal must be timely. Therefore, if you are making a financial goal, be sure you have to think about how much money should you have or gain after a specific years.
Purpose: Why should you invest? Maybe you invest because you want to achieve financial freedom, to grow your money, for capital growth and use for business. Maybe your purpose why you invest is to buy a house, or for your kids education.
Take note, that InvestmentTotal.com author is not making a guarantee of the future returns of your investments. As we know, there is always risk involved in investing. But we can manage the risk by investing wisely and smartly. There are investing topics in this blog as a guide, so keep on reading and visiting.
Going back to the topic, the future value of your P1,000 per month investment will be worth P100,000 after 20 years. See the table below for your reference. I compiled this table here at InvestmentTotal.com blog. I have separate the investment capital, future value and how much interest should the investment capital earn per year and how many years stay invested.
Future Value of P1,000 Per Month Investment
| Monthly | Annual | Years Invested |
Earn 5% | Earn 8% | Earn 10% | Earn 12% | Earn 15% | Earn 18% | Earn 20% |
| 1,000 | 12,000 | 3 | 37,830 | 38,956 | 39,720 | 40,492 | 41,670 | 42,868 | 43,680 |
| 1,000 | 12,000 | 5 | 66,307 | 70,399 | 73,261 | 76,234 | 80,908 | 85,850 | 89,299 |
| 1,000 | 12,000 | 7 | 97,704 | 107,073 | 113,846 | 121,068 | 132,801 | 145,698 | 154,990 |
| 1,000 | 12,000 | 10 | 150,934 | 173,838 | 191,249 | 210,584 | 243,644 | 282,255 | 311,504 |
| 1,000 | 12,000 | 15 | 258,942 | 325,825 | 381,269 | 447,356 | 570,964 | 731,583 | 864,421 |
| 1,000 | 12,000 | 20 | 396,791 | 549,143 | 687,299 | 864,629 | 1,229,322 | 1,759,535 | 2,240,256 |
Note: By using the future value formula, you can calculate the future value of your investment.
The table above shows that if you invest your P1,000 per month that earns 18% interest per year within 20 years you will have extra P1,759,535. This simply means, the longer your money is invested with the high risk investment, you will gain much money.
Take Note: This table also works for other currency, I am using peso because I am in the Philippines. For OFWs, you can just change the peso denomination into dollars, euro, pound, yen etc.
Low risk investment type are bonds and money market funds for UITF and mutual fund investing while high risk investment are direct stock investing or just invest your money in UITF equity type and mutual fund equity type. Equity mutual funds or equity UITF funds are invested in stocks. High risk favors the investors who stay invested for many years (preferably 10 years or more).
Future Value of P1,000 Per Month Investment, Amazing Results!
Is P1,000 per month enough to retire rich? Well, it depends on your lifestyle, on how you invested the money, and consider the risk involved in investing. Have time to know on how to compute your retirement target asset.
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