8 things to do in shaping your financial future
Nothing can wake you up than the fact the world is undergoing a massive pandemic crisis. When reflecting on things, has there been a change in your financial outlook for the future? Since the way we do life has changed entirely, it might be the perfect time to shape your financial future.
Financial planning and education are essential, especially nowadays, when everything is uncertain, and the future appears bleary. Why should you prioritize this? No one will focus and care about what your future will bring aside from you. If you secure your future financial wealth, you will get to afford all that you need and want, even things that will sustain you in the long run.
To help you gear yourself in achieving economic independence, here are some tips on how to plan your future financial security.
- Design a financial plan.
A bright financial future starts by having goals. Before you design your financial plan for the latter years of your life, it is crucial to think about the result you want to gain. What should you write in this plan? Consider your short-term and long-term goals.
Think about prioritization. You should list down goals that you have to complete soon, such as debts that incur interest if you prolong settling them. More than that, you should also break down huge goals into smaller chunks, so that you will not feel too overwhelmed with pressure. Tracking progress would also be more comfortable and more satisfying when you list down smaller goals.
- Schedule a budget.
In envisioning your financial future forecast, you should first look at what you have today. Understanding the current extent of your finances will guide you in deciding how to make this better and how to align it to your targets. The simplest way to do this is by organizing a budget. By following a strict budget and tracking your expenses, you will be empowered to avoid losing track and losing money to save and invest.
- Create an emergency fund.
Life is unpredictable – you never what tomorrow can bring. Just like how unexpected the current global pandemic hit us, another crisis can come in at any moment. This fact alone proves the value of having an emergency fund. According to some experts, this fund must amount to 25,000 to 100,000 pesos at the least. An amount along this range is an excellent place to start, but it is always welcome to add on as you go along.
4. Invest your money.
Just like the saying goes, you should make your money work for you. There are many ways to go about this. You can purchase bonds, trade through the stock market, buy real estate, and acquiring mutual funds.
One great thing that you can try is peer-to-peer or P2P lending. This system does not operate like usual borrowing processes. Instead, this program allows people to borrow from other individuals.
If you have some funds to invest, you can become a lender in a P2P lending platform like Blend PH. The money that you s. invest on the site will be available for lenders that the platform screen and qualifies. You can gain profits in P2P lending through the interest paid by the borrower.
5. Find high-yielding savings accounts.
There are also some ways of earning passive income in a traditional sense. You can talk to banks and financial institutions and inquire about “high interest” or “high earning” savings accounts. The slight advantage of this one is you might have to wait too long before reaping your profit.
6. Pay off your debts.
For a bright financial future, you must rid yourself of debts. Typically, these manifest through credit cards, car loans, or loans. Without freeing yourself from these, you will never get a move on into a bright financial state. Interest rates can bury you underground and hinder you from growth, so you can think about better refinancing options or create a strategy to say goodbye to all of your debts.
7. Frequently review your financial plan.
After you have finalized your plans for your finances, you should prepare yourself that you might need to tweak them to become fit for your life. For instance, your goals when you are single are different from your goals as you get married or have kids.
Just as how you get your scheduled check-ups with your doctor or dentist, you should do the same with your financial habits, activities, and plans.
8. Stay committed to your goals.
Achieving financial independence will surely be a bumpy ride. There are moments when it will feel like the future you envision is too far to reach. Sometimes, life throws challenges that last for weeks or months, and sometimes you might make mistakes. Don’t lose some hope, and keep holding on to your financial plans or goals.
When you feel like quitting on your life dreams, remind yourself why you are serious in reaching financial freedom. Let these reasons be your drive and strength to fight against the challenges that come your way.
Let Blend PH be your investment partner.
For your financial needs, Blend PH can be your partner in achieving your dreams. If you have a venture in mind, you can try our borrowing program to get the small business capital that you need. If you want to make the most of your funds, diversify your portfolio by trying out Blend PH’s investment programs: Auto Invest and Peer-to-Peer Investment. Whatever your current financial state may be, let Blend PH be a part of your journey.