Are you putting enough money aside for your savings? Findings from Luno and Dahlia Research reveal that a whopping 69% of 7,000 millennials do not save regularly. Their reasons range from impulse spending to buying the newest gadgets.
As the world is emerging from the pandemic, it’s the perfect time to make positive changes to your financial habits and start planning.
When you’re free from money worries, you get to lead a fuller, more enjoyable life. Read the signs below to see if you need to devise a financial plan.
1. You don’t have specific retirement goals.
Retirement may be the furthest thing from a millennial’s mind—but anticipating the future and staying ready are reasons to develop a financial or investment plan, so you can enjoy your life today without neglecting your needs for tomorrow.
What to do about it: Financially prepare for tomorrow. Check out different products from FWD Life Insurance. Find an insurance plan that has an investment component, such as Set for Life and All Set/All Set Higher, so that you can get diverse opportunities for growth while having a life protection at the same time.
2. You don't track your expenses.
Do you know how much you spend on coffee, travel, clothes or streaming platforms like Netflix? Probably not. It can also be very tempting to spend on unnecessary things right after payday.
What to do about it: Keep in mind that if you're serious about saving, you must monitor your cash flow by listing down all your purchases. To help make this task easier, download expense-monitoring apps for free on Google Play or App Store. Do this and you’ll be surprised how this simple act can make a big difference in your finances.
3. You're spending too much of your income.
If you’re living from paycheck to paycheck, then your cash-strapped days will never be over. While it works while you’re young and single, you won’t be ready when setbacks happen.
What to do about it: Make it a habit to put 20% to 30% of your income into your savings as early as now. You won’t regret it, no matter when you’ll need it in the future—and whether it’s for a vacation or an emergency.
4. You have credit card debt.
If you have a credit card debt, then this is your wake-up call. A credit card is good to have only if you're using it wisely. Ignoring your debt will only let it accrue interest, which can cause a larger financial problem.
What to do about it: Figure out the quickest way to settle your debt, whether it’s by holding a garage sale (a good way to declutter too) or inquiring with your bank if they can restructure the payment terms. Next, plan your weekly and monthly budget to curb your spending and add any savings to your monthly payment. Do remember that paying more than the monthly dues will also ease the burden.
5. You don't have an emergency fund.
Whatever happens, you must always have an emergency fund aside from your main savings account. The purpose is to have sufficient cash in case an unforeseen event happens.
What to do about it: Set aside another 10 to 20% of your salary and build an emergency fund that you can use when you need car repairs, sudden hospitalization, or when you suddenly find yourself in between jobs. If you do not have an emergency fund yet, create one now.
6. You’re not growing your money.
Maybe you’ve come into money—an inheritance, the sale of a family property, etc. You’ve had it for some years, but it hasn’t really earned substantial interest
What to do about it: Consider an insurance plan that comes with investment opportunities. FWD’s Manifest protects you and your investment and rewards you for investing more for longer. It gives you Loyalty Bonus, Start-up Bonus, Premium Extension Bonus, Investment Protector Bonus, Guaranteed Milestone Increase and Accident Coverage so you can manifest your goals with more ease and less worries.