The future comprises the small, everyday decisions that shape the kind of life you’ve envisioned for the people you love. Are you starting a family? Scrimp and save to build your dream home. Are you striving to send your children to the best schools? Work hard at your day job and your “rakets.” Are you planning to leave a legacy for your children and grandchildren? Wisely invest your earnings.
But don’t stop there because things don’t always go as planned. Jobs are lost, unexpected expenses crop up, not all investments pan out. It’s not enough to just build a future, you have to make sure that your loved ones get to enjoy it, too, in the future.
How to do that? Here are five easy ways to ensure that all your hard work will not go in vain, no matter what!
Set up an emergency fund.
Don’t let life’s unwelcome surprises—a major home repair, a health emergency, or worse, unemployment—throw you off guard. Make sure you have an saved up that is at least 3 to 6 months’ worth of your living expenses. How to compute? Add up your expenses for a month (Don’t forget to include the monthly equivalent of your annual expenses like school tuition, insurance premiums, taxes, etc.) and multiply it to three months (or up to six months). That’s how much money you should have, kept, right now! It is your financial safety net when the need arises.
Pay your debts.
Avoid debt at all costs! But if you have to have debt, prioritize paying them. If you don’t, all your mortgage, car loans, and other debts will be your loved ones’ burden. Yup, there’s no escaping them. And remember, don’t just pay the minimum, even if it’s just your Pay in full and on time. Don’t let money that could have gone to your retirement fund or your kid’s educational fund just go to interest payments.
Protect what you built.
Don’t let uncertainties take away the things you worked hard for. Whether it’s the house that you’ve taken a loan for or the college education that you’ve been saving up for, make sure your family will get to enjoy the fruits of your labor! Insurance plans like protect what you have built so you don’t have to worry about your family losing what you’ve worked for. This term life insurance plan has three affordable variants: Short Term Cover for your loans and financial obligations; Income Protector for your family’s living expenses and your children’s education; and for smooth transfer of wealth to your heirs.
Want to calculate how much it’ll take to ensure your family’s better tomorrow, no matter what? Visit FWD’s online calculator, , and get a quote instantly!
Develop new skills.
From volunteering to manage a project to finding a mentor and attending seminars, developing new skills add value to your career and is crucial for your growth (and promotions)! Don’t be scared to veer away from your corporate comfort zone. Turning on and upgrading hobbies like baking, photography, blogging, et cetera. could mean new streams of income for you and your family. The possibilities are endless when you don’t stop learning!
Diversify your investments
Remember the adage “Don’t put all your eggs in one basket”? That’s investment diversification in a nutshell. Diversification is investing in different funds from different companies and industries so you don’t run the risk of losing all your money when one of your investments suffers. That way, the money you intend to grow for your family’s future needs is secure.
Protect your health.
Here's another time-tested saying: health is wealth. You live in a world where, more often than not, your income directly affects your health. With money, you can opt for healthier options, and you can afford medicine or hospital expenses. But these two things do not have to be mutually exclusive. FWD Life Insurance has options that can protect your mental, social, physical, and financial wealth. Its roster of health plans including Set for Health and protect you from the financial burden of medical expenses. Health Bundle, for instance, can be boosted with RecoveryPro to receive cash allowance for hospitalization, including Covid19-related confinement.
Securing your finances is an important aspect of your total wellbeing. Along with mental and emotional , social, and physical, managing your finances well allows you to live the joy of wellbeing. When all aspects of your finances are covered, you can be sure that tomorrow will be better.
Our financial advisors can help plan your finances. Schedule a financial wellbeing checkup with them here.