Welcoming the new year means a fresh start on all your goals and resolutions — including the financial ones. But how many times have you told yourself that you’re going to save up, but then lose your way midyear?
This is why it’s important to have a proper financial game plan. AXA, one of the country’s leading insurance companies, shares some tips:
List them down. Before creating a financial plan, know what your goals are. From the most practical and urgent to the seemingly unattainable, it’s important to list them all down so you can visualize them and study them later.
Prioritize. Reflect on what you really want to have. Is it a house or car, further studies, or travelling? Do you plan to save up for retirement or investment? It’s important to know your short-term and long-term goals. This will help you get a head start and prepare your game plan to achieve your aspirations in life.
Establish a budget. A simple formula to follow is your income minus expenses equals savings. Subtract a portion of your salary for monthly payments (utility bills, car, house, etc.) and a portion for your lifestyle (shopping, travel, a night out, etc.) and what’s left should be set aside for your savings on a monthly basis.
Build a fund. Investing should be part of your financial agenda but be discriminating about what tools to use. When your savings have amounted to an amount you can invest, AXA’s Asset Master can help in building a solid foundation for your financial legacy. Designed as a single-pay, investment-linked insurance plan, Asset Master allows you to build a diversified investment portfolio of local and global investments. For more information, visit www.axa.com.ph.
Keep track of your progress. Make sure to monitor your progress so that you can stay on track.