Most of us think that millionaires make it because they earn a lot of money, but that’s not always the case. Some people have managed to save their first million because they know how to properly manage their wealth at an early age. If you one to take your first step to become a millionaire, then there’s no better time than to start now.
Let’s start by introducing these five financial goals you should achieve before you turn 30.
#1 – Start saving for your retirement.
Did you know that 8 out of 10 Filipinos depend on their children during retirement? Wouldn’t it be wiser if you belong to the 20%?
There are several ways to save for your retirement. What I did in my case though is that I applied for a 10-years to pay VUL policy when I was 20 years old. Aside from a life insurance coverage, it also has an investment which projects a fund value of more than ₱ 5 million at 10% growth when I reached the age of 65. That means I won’t have to worry about earning money by that age, because I already have my retirement plan. And the best thing about it is that it only cost ₱ 1,500 per month.
#2 – Pay all of your debts.
At all cost, avoid getting in debt – whether borrowing money from a friend or loaning from the bank. If you currently have debts then, by all means, pay them as soon as possible to avoid getting in the loop of endless interest payments. Make sure to pay off debts with the highest interest rates first. You can either get another source of income to pay all your debts or use your bonuses to pay them off rather than splurging them on new stuff.
#3 – Set up an emergency fund.
An emergency fund is a saving fund that contains 3 to 6 months worth of living expenses so you and your family can be okay if ever you were laid off of work or sick for an extended time. For example, if you’re family spends around ₱ 30,000 per month, then that means you need ₱ 180,000 in your emergency fund in a separate bank account.
#4 – Buy yourself insurance.
If anyone else depends on your income, then that means you need life insurance. A life insurance policy can protect you and your family from any financial uncertainties such as accidents, critical illness, disability, and even unexpected death. You can start your insurance policy for as low as saving ₱ 100 per day.
#5 – Set up your budget and track where your money goes.
A budget makes you sure that you will always have enough money for the things you need. It’s important to know how to manage your finances as early as possible because it doesn’t get any easier as you get older. A budget can also tell a lot about how you spend your money, which makes it easier for you to adjust your budget over things you don’t primarily need like spending money on luxuries.
Want to know more about how you can improve your finances? Schedule a financial consultation and planning, contact us now by sending us an email on firstname.lastname@example.org or by texting/calling us at 09194872581.
Hi! I’m Erika Yap Celario, a millennial frugalist, who’s here to help and join you on your journey to financial freedom. I’m also a proud Financial Advisor and Licensed Insurance Agent of Sun Life. For questions or concerns, you can email me at email@example.com or call me at 09194872581.