5 Steps to help you PROTECT your Tomorrow.
Saving in the Philippines is seen more as a privilege by most people who spent most of their income on utilities and food for daily survival. Not that we are seeing it as a problem, but this is the typical situation that most of us would face and for those who can save, it would be for a small fraction of their income.
But as time goes by and when the world was hit by the pandemic, more and more people are now looking for different ways to protect their finances in the future. If you are already thinking of saving, here are the 5 steps that would help you protect your future.
1. Save
The first order of business is to save. Saving a portion of your income is, by principle, the wisest thing to do with the remainder of your income. In a report published by the Philippine News Agency, most or about 46.2 percent of Filipinos that are identified as savers put their money at home while 26.5 percent save through cooperatives, “paluwagan,” other credit/loan associations, and as investments like microfinance and insurance.
Although this was the norm in a typical Filipino household, it can be risky if inflation hits or some unfortunate events can affect your finances. It is advisable to save your hard-earned cash in a bank or place it on a legitimate investment plan that would help your money grow in time.
2. Curb your habits
Most people would spend their money not only on utilities but also on recreation and entertainment. Sure there is nothing wrong with having a good time after a grueling week or doing something that would relieve you from stress, yet it can hurt your finances if you’ve become too indulgent and see your income vanish. It would be better to curb some of the unnecessary habits that can hurt your budget and do a better alternative that would not cost too much.
3. Have a budget
Always know your priorities, and this principle also applies to your money. It takes discipline and control to track the spending habits that will help you in saving up. Living on a budget may seem to be difficult, yet it helps you focus on the value that budgeting will bring to your life. Plus, it will help you with your savings.
4. Improve Financial Literacy
Financial Literacy is a plus factor when it comes to handling your finances. Being financially literate will help you in gaining the confidence to manage your money better and handle financial problems you run into with greater ease. Always make sure to get adequate and precise information from credible sources that will guide you into your financial literacy.
5. Get Insured
And lastly, consider having insurance. Getting yourself insurance can go a long way, especially life insurance. You may never when life hits you with unforeseen events that would drain you financially in the long run. By having life insurance, you’ll have a good backup when the unexpected happens to you or your family to have that protection and peace of mind.
We have to look into our future at some point to see where we are heading. If we have the protection of our finances, we won’t have to deal with the hassle of losing money or having a bleak future.
