It’s no secret that saving money is an important part of any young professional’s life. It makes no sense to spend the best years of your life working hard, only to squander your earnings and leave no buffer for your retirement years. ABS-CBN News reports that millennials are more likely to spend on experience rather than on products, but sometimes that money can be better spent (or saved) elsewhere. Everyone knows that handling money can be tough, which is why you can read our post on the ‘Top 3 Mistakes About Money in the Philippines’. If you want to learn a little more about what you should be saving up for, check out the short list below.
The primary thing you should be doing with your savings is, well, saving. Try not to get into the habit of saving to spend. Instead, you should be looking at saving for the long-term. The Philippine Daily Inquirer claim most Filipinos can’t retire at 60 because they fall short of the Php 4 million pesos needed to retire comfortably. You can avoid falling into that statistic by starting your savings account as early as now, while you have enough extra income and years to spare.
When you’re young and healthy, health insurance seems like an unnecessary expense, but like many things it’s best to start early. Health insurance can help defray the costs of medical emergencies like hospitalization, keeping your health and finances safe. Make sure to pick a health insurance plan specially tailored for your demographic. For example, Paramount Direct’s HealthCare Cash Plan is tailored for individuals aged 20 to 50 years old, with coverage available for family members under one affordable premium. It also includes Daily Cash, Daily ICU, Surgical Cash, and Convalescence Benefits, meaning you don’t have to worry about finances and can focus on your own recovery.
You can offset the impact of inflation on your savings by making smart investments. One of the smartest, although probably the most expensive things you can invest in, is real estate because it always appreciates in value. Millennials are beginning to move into the real estate market, and real estate developers and brokers are starting to pay more attention to their needs. If you’re thinking of investing in a place of your own, you can join your peers and start looking for rent-to-own properties, which may be better for your wallets and investments in the future.
Stocks and Mutual Funds
If you want your money to earn a little more than it would have in a savings account, then you can look into investing in stocks and mutual funds. For many Filipinos, the idea of investing in stocks can be a little intimidating. After all, the process sounds complex, and making any investment can be kind of risky. However, the mood is shifting. Business World suggests millennials are changing the game when it comes to the Philippine Stock Exchange (PSE). With more and more processes moving online, it’s easier than ever to get started with making investments.