I previously shared that we also have a simple backyard cattle investment in the province. My father is the one in charge and taking care of them. Late last week, we just sold one of our investment and the returns are awesome. It’s more than 66% of passive income. Let me share the details below.
A short story
Back when I was a kid, we used to take care cattle from our relatives. Well, we helped our father to take care of them.
It’s called “paiwi system” in our town. It simply works like this.
Someone(your relative or anyone) will buy a cattle and you(my father in this case) will act as a caretaker. The capital(original price) + other expenses will be recorded and will be deducted upon selling of the cattle when needed.
Simple as that.
Though it only earns us a fraction(since my father was just the caretaker) that “sideline” before helped our family in many financial situations. It’s additional income and cash flow for the family.
Many years after
When we finished college and started working(and of course earn our own income), backyard cattle farming is one of the initial investment we have. Maybe because we used to have this before.
Another reason is, my father really loves this simple investment. It’s his main hobby.
My siblings and I purchased cattle and our father will take care of them. When it’s about to sell, we divide the profit accordingly. Though most of the time, we gave it all to them.
That’s how it works when I was still single and used to live with them.
Our first investment as newly wed
After marriage, backyard cattle farming was our initial investment of my lovely wife. We spent P18,000 as our capital. That money came from the gifts of our friends and loved ones in our marriage. Again, initial investment as a couple.
So my father took care of it. Well, it’s just really a hobby for him. Imagine, he just let them eat grasses in the backyard and nearby grass-ground in our area and they’re all good.
Sometimes they need to have a vaccine and some sort of meds but the main responsibility was just to let them feed and drink.
We bought another one after a year.
My 2 siblings also bought another 2 for each of them and let our father do the task. In short, my father takes care 6-8 cattle as of now.
Time to encash: Ka-ching!
Fast-forward after more than 2 years, it’s time to sell one of our beloved cattle. The reason being is, my sister’s cattle need to be sold as well(because it’s time to) and our father decided to include ours since he thought it’s the best time too.
A cattle(backyard farming style) can be sold for a good profit in 1.5 to 2 years. But it’s a case-to-case basis. Good thing my father really know this stuff so he can tell when is the best time to sell.
Remember our initial investment of P18,000? It became P30,000 in a span of around 30 months.
A P12,000 profit. That’s a whopping 66%++ of the initial capital.
What investment in the Philippines give you that returns? I mean without too much effort? It’s like a money-making machine. A passive income as what others say.
But of course, it will be divided into two since my father needs to have his share.
In short, we have P6,000 as net profit for that investment. In just more than 2 years. Without doing anything. As in.
P6,000 is not big. But if you’re going to take a look, it’s way more than a savings account or time deposit can provide. And remember, we have another one on the line.
Plus, we gave some sort of “hobby” and income to our father in the province. That’s a win-win for both of us.
Conclusion. What’s in it for you?
Can savings account or time deposits give you that kind of returns? Hell NO. Aside from just .025% interest annually, they will still deduct taxes from you. That’s why I only advocate savings account for an emergency fund.
If you want your money to grow, learn how to invest. It doesn’t matter if it’s stock market, mutual funds, UITF or like this, a simple backyard cattle farming. As long as you can maximize the potential growth of your money, it’s good.
Just a reminder though, make sure you understand what you’re venturing to before getting started. Keep in mind that investing in yourself is the best investment of all time.
I hope this has been informative, cheers!
I’ve been seeing your blog pop up since I’ve started doing research on the Philippine Blog scene. This article on backyard farming caught me. I love how the concept works. I have tried to do this before, investing in my friend’s pig farm, but I wasn’t able to put in the whole amount needed in investing so my money just burned.
In your case, I applaud how you’re able to hit two birds here with the proverbial one stone – making your money work for you by giving “work” to your father.
I do have a couple of questions:
1. Do you have any back up plans (say insurance) if the cows get sick or something?
2. I understand that you and your wife put in P18,000. Does that cover just buying the calf, or does it cover the vaccines and medications, and occasional salt lick for the cow?
3. Did you ever name the cow? (That’s just me, I like naming animals)
Hey Marco, thanks for coming to the blog. Here are my answers:
1. Unfortunately, no insurance is offered in our province. So we go as is. But we do precautionary measures like a vaccine, regularly check up from town’s veterinarian(at least 1x per quarter).
2. Most of the time yes. When we released the capital, the miscellaneous expenses were included like notary fee etc. But throughout we may release additional fund for vaccine, food supplement etc. Mostly for a whole year an additional cost of 2,000.
3. I love this! We usually call them by their color. Lols. No formal name but it’s a good idea. Maybe on the next roll. 🙂
Goodluck on your ventures. Thanks!
Hi Billy, are there any permits or requirements for this kind of business?
Tressa Pendang says
Hi I would like to ask if how old is the cattle when you purchased it? And if the P18,000 is for just one cattle purchased? Thank you.