MANILA, Philippines – With the New Year only days away, you should not only consider physical health in your resolutions but financial health as well.
ANC’s “On The Money” listed some financial resolutions to help you reach your financial goals:
Review your budget and spending habits
Making a list of the items and activities you spent for during the year will help you anticipate where you spend most on and where you can cut back.
Check the amount of savings you have at the end of the year
Pay off credit card debt you may have
Set your money goals
When you have accounted the saving you made for the year, use it to pay off any debts you may have to enter the New Year debt-free.
It will also help you set your money goals for the coming year.
“[Ask yourself], ‘This is how much I am making in 2013, will I ask for a raise this time?’ At least write it down in your head so you know where you are going, you know where your road map for 2014 is when it comes to your finances,” registered financial planner Rowena Suarez told ANC.
Get income protection through insurance
Health insurance
“Without [health insurance], you cannot work anymore if you are sick, and another thing is the high cost of medical expenses,” said Suarez.
Set a spending budget and review it regularly
Create an emergency fund equivalent to 3 to 6 months worth of expenses
Suarez said if your expenses reach P100,000 a month, then you need to have around P300,000 to P600,000 in your bank account for emergency funds.
“Don’t touch that,” she stressed.
Figure out your financial needs for retirement
Set up an automatic payment plan to pay yourself first
An automatic payment plan will also help you save every month, Suarez said.
“Sign up for an automatic savings plan system. Like every month, take out P5,000 or P10,000 from your account, and that’s like paying yourself,” she said.
Adopt a healthy lifestyle
Meet regularly with your family to discuss finances
Become financially literate
Suarez noted that becoming financially literate is key in reaching financial goals to prevent joining savings programs that don’t yield good interest.
“Get educated when it comes to financial programs. You have to look around and scout around, and study. There’s so many programs right now that gives free learning,” she said.
source: www.abs-cbnnews.com
