5 Financial Tips Your Future Self Will Thank You For

When it comes to our finances, being financially well is more than just thinking about the “now.” Sure, you might have a few pesos here and there for your daily expenses, but how about your expenses a month, a year, or even a decade from now?

Financial Wellness encompasses your present and future financial state. Thinking about the present while ensuring that your future is also stable is actually the key to better enjoy the benefits of being financially well. 

Acting now can help you slowly build the stability for your future! How? Well, look no further because here are five things you can do now as a young student or professional that your future self will thank you for!

1. Set Financial Goals

Setting your financial goals is one of the first things you should do if you want to achieve financial wellness. Your financial goals are basically your “targets” that are set within a certain time period and with specific purposes. To better understand financial goals, it’s best to look at its three main components: Short-Term Goals, Mid-Term Goals, and Long-Term Goals.

Short-Term Goals are your targets that are easily achievable either immediately (say 3 to 6 months) or quite soon (in about 1 to 3 years). Things that fall under your short-term goals include your monthly spending budget, your emergency fund, and paying any debts that you have either from a credit card or from your friends and family. These goals are doable in a relatively short amount of time and can also be your jumping board to your longer goals.

Mid-Term Goals have a longer timeframe than your short-term goals and are your “portal” to what would feel like your future. Some of these would include getting life and health insurance plans, saving up for your first home or car, or even saving up for your post-graduate studies. These goals are achievable in about 3 to 10 years which also helps you achieve much longer goals.

Long-Term Goals are the longest goals you would have, and these often have timeframes that are in the decades. Some of these goals include building your retirement plan and saving up for your child’s education (if you plan on having a child). 

Some of these goals would run you for quite some time but it’s best that you start early so you can take your time and start saving small amounts of money that won’t break your wallet!

2. Build Your Savings

Building your savings is almost as synonymous with setting your financial goals. However, your savings depend more on the “why” than on the “when.” Hence, the reasons for saving would also change as you grow older.

For example, as a young adult now, your savings can be dictated by your need for better work equipment (e.g., buying a high-end laptop for those in the creative fields) or simply because of your wants (e.g., buying a new smartphone). However, once you’re much older and living on your own, how much you save might now be dictated by the amount of bills you have to pay at the end of each month, your groceries, or any unexpected expenses that you might incur every now and then (e.g., home renovations after a strong storm).

For now, start building your savings by saving any amount of peso that you have. Save up those loose change and take advantage of promotional discounts. Although these might sound small, these can start getting you into the habit of saving which you would do later on.

3. Have an Emergency Fund

One of the inevitable things in life are emergencies — and there are lots of them! The key is being prepared way before these emergencies happen. Having an emergency fund that can cover your emergency expenses is the best way to avoid any financial struggles that you might encounter. 

The easiest and the first type of emergency fund that you can have is one that relates to job loss. The pandemic has shown us that, at any moment, we can lose our sources of income. So, try to compute 3 to 6 months’ worth of your expenses. The result would give you the amount you have to save as your emergency fund in case you are to lose your job, and it would take you that amount of time before you land another. If you can go beyond the 6-month worth of expenses, then it’s a whole lot better!

Another emergency fund you can start building is one that relates to medical emergencies. One day you might get into a car accident that may render you physically disabled or something in your body hurts which would then be diagnosed as a life-long disease. Having an emergency fund will help you cover the immediate hospital costs and even the loss of income (for those who are unable to work temporarily) while ensuring you’re not struggling financially. 

4. Get an Insurance Plan

Speaking of emergencies, getting an insurance plan is also a good option to protect yourself from unexpected expenses. There are a lot of insurance plans that you can avail, depending on your needs.

For example, Life Insurance Plans will cover medical expenses up to a certain age (some even up to 100 years old!), certain diseases such as cancers, or even ensure funds if loss of life would happen. Other insurance plans include Retirement Insurance, Education, and even Income Protection.

Choosing which among these plans are right for you might be a daunting task. But, consulting with a Financial Advisor can help you make the right decision.

5. Start Investing

Last but not least, you can also opt for investing! There are a lot of investments that you can start looking into. You typically hear of things like stocks and bonds but there are some that are much easier to start with!

One of these is what’s known as a Mutual Fund. Mutual Funds essentially pool money from different investors (like you) to invest them in company stocks and bonds and are handled by professional fund managers. This lowers the impact of most fees while allowing you to invest small amounts of money — even for as low as 50 pesos! Starting small and training yourself to observe the economy and even the stock market will help you have that habit of being aware when the best time is to invest.

As a young adult or a young professional, being financially well can feel overwhelming. But everyone’s gotta start somewhere, right? Taking baby steps and learning about how you can manage your finances day-by-day will help you understand that things are not as hard as they seem! And, when you find yourself stuck and things just won’t budge, you can always ask for help! 

Talking with a financial advisor can make a huge difference! They can guide you through the world of finances and help you sort things out. Start talking to a financial advisor here and, next thing you know, you’re already building your future of a brighter life!

You can also get a chance to win P2,000 Giftaway eGCs until November 15, 2022! Simply complete the FinLit is Life Quest, and enter the promo here: https://sunlife.co/finlitquest

#SunLifePartnerInHealth #SunLifePartnerForLife

 

Take care of your mental health

>
Generation Zen

How To Channel Confidence This Back-to-School Season

3 min read
Aug 11, 2022
Like this post
>
Generation Zen

Which Wellness Reminder Do You Need Today?

1 min read
May 25, 2022
Like this post
>
Generation Zen

5 Ways To Deal With Face-To-Face Classes Anxiety

6 min read
Apr 22, 2022
Like this post
>
Generation Zen

3 Ways You Can Do a Wellness Check-In

4 min read
Apr 19, 2022
Like this post
>
Generation Zen

5 Ways to Manifest Wellness in Your Life

11 min read
Apr 12, 2022
Like this post
>
Generation Zen

Dear Besties, Why Am I Not Feeling Well Today?

7 min read
Apr 12, 2022
Like this post
>
Digital Learning

3 Ways Online Learning Has Made Us Better Students

5 min read
Mar 18, 2022
Like this post
>
Generation Zen

5 Ways to Positively Use the Internet in 2022

3 min read
Mar 18, 2022
Like this post
>
Generation Zen

Too much internet? 5 Signs You Might Need an Online Break

7 min read
Mar 18, 2022
Like this post
>
Generation Zen

Movies And Shows You Need To Watch Based On Your SHS Strand

8 min read
Feb 17, 2022
Like this post
>
Generation Zen

Virtual Internship Experience with the Besties

8 min read
Jan 18, 2022
Like this post
>
Generation Zen

How to Develop a Growth Mindset for the Future

7 min read
Dec 28, 2021
Like this post
View More Stories
Explore new paths
Career Guide

No need to cram! This is the fun kind.

Quests

Learn and earn rewards along the way!

Resources

Planning for college? Don’t worry, we gotchu!

What do you want to be when you grow up?

Let us help you achieve your dream job by matching you with the right schools.

Need more info?

Send us a Message

Error