18/03/2023
Here are a few common Financial Planning blunders most Filipino people made.
โ Heaps Of Credit Card Debt
Most millennials use their credit card on things they do not require or overspend thinking that they can pay it off later. A credit card is a tool to help gain time, it is not something to be used for luxury spending.
โ No Emergency Fund
One of the biggest mistakes people make is not building up for a rainy day. An accident, health issue, or losing a job are major causes of cracks in savings. An emergency fund should be built to provide a minimum of 6 months of living expenses in case of a mishap.
โ Spending At The Rate Of Their Earnings
Wouldnโt you love splurging on a holiday or buying a bigger property? But with this mindset, you will never be able to reach โfinancial freedomโ. Use the extra income to pay off previous loans, or buy an annuity. That way you will have extra income in the future.
โ Not Being Proactive About Their Health
In todayโs time and day, nothing is more important than your health. Age has nothing to do with health and immunity.Being sensible about your health from the beginning will increase your longevity, preventing overheads for health care in the future.
โ Not Investing In Whole Life Insurance
Surely you cannot influence the ups and downs of your life, but as they say, spread your eggs in different baskets. You can control the rate of saving and the percentage of income you put into long-term investments. Having adequate insurance cover is one of the fastest ways to grow your wealth.
โ No Retirement Fund
Every penny counts! Set aside as little as you can while you are young and healthy for a time when you are old and frail. Your retirement fund is not for you to indulge in an adventure in your 30s. It is for you to lead a comfortable, independent life even in your 60s.
Let us be more prudent on how we spend our income, how we manage our finances and in setting up and taking actions to meet our goals in building up our wealth and in taking care of our health. ๐
