With so many things to do, places to see, and bills to pay, your wallet and savings will be put to the test. Before accomplishing your life bucket list, you have to make sure your financial savings are all set not only to accommodate your wants but also prepare for the rainy days.
But first things first, you must plot out specific financial goals and match it with your financial capabilities. In a previous World Bank study entitled “Enhancing Financial Capability and Inclusion in the Philippines,” Filipino respondents received a rating of 45% in financial literacy quiz, which means that Filipinos’ financial management and habits are still average.
No matter what age set you’re in or how your lifestyle goes, the need to save money and be financially aware is a must do. While saving money is a tough deal when you’re living paycheck to paycheck, you can counter it by saving little by little.
1. Have no debts – If there’s one thing you’d feel good for leaving behind, it’s having your debts paid, in full. When you have nothing to pay, you can manage your finances properly and focus on other important life matters.
Achieve this by managing your debts. Be prepared to consolidate a large part of your funds to pay your debt or do online pawning for your excess stuff to have additional income sources, so you can go debt-free as soon as possible.
2. Have enough emergency fund – While an emergency fund is a short-term financial goal, the benefits of having a well-stocked emergency fund can help you in your lifetime. This will be your source of income in case of emergencies and future expenses.
Achieve this by allotting a part of your finances to your emergency fund, as this will save you in the long run.
3. Have enough insurance – There are various insurances you can apply in life: from auto, life, and health, which will cover your life’s contingencies especially on unexpected events.
Achieve this by applying for certain insurances that you can count on in life. This will be your funding in case you’re in a financial crisis.
4. Have the ability to live on less – Living within or sometimes less than what you earn is the best way to live life without any financial worries. The ability to live on less can give you more space to allot your expenses on your needs and wants.
Achieve this by living less and focusing your excess fund on your savings and other expenses.
5. Have no addictions – When you have money, it’s easy to spend on things as a reward for a hard day’s work. However, this is a trap, a pitfall that you must avoid for the benefit of your savings and future. While it’s alright to spend once in a while, the rest of your finances should be allotted for your savings.
Achieve this by resisting temptations, think of the other things you need to spend on and focus on that instead of impulse spending.
6. Have the work you love doing – When you have enough financing, you can have the independence you want in life, and this includes the ability to have the work of your dreams. Due to financial problems, Filipinos work for other jobs that are not in line with what they want. When you have enough, you will love working and earning.
Achieve this by saving money and budgeting your plans and monthly finances.
7. Have comfort in sharing your wealth – You know you’re comfortable sharing your fortune when you can give some to people who need it, and you feel at ease because you don’t let money run your life.
Achieve this by donating some finances to the needy when you have the spare and not flaunting your wealth in a prideful manner.
8. Have everything settled in case of emergency – Death and accidents can occur anytime. While it’s a scary thought, you must prepare for worst-case You must have an adequate life insurance to leave your loved ones and corresponding will terms that will benefit each of your family and relatives.
Achieve this by saving enough life insurance to cover your loved ones’ financial needs. Ensure you’ve taught proper money handling and financial management to avoid wasting money.
Coming to terms with your financial goals and capabilities is the practical way to face the reality of adulting and financing. While it’s hard to achieve your financial goals at first, you will be on the right track once you get the hang out of managing your money.