Every aspect of our life almost involves money, which is the reason why financial education is a crucial asset to learn. It is a must that we understand how to manage money well and make it work for us.
I was lucky enough to join Sun Life's #Money4LifeChallenge with Aya Laraya of Pesos and Sense last June 18 to learn more about setting oneself to financial success.
Find out about my key takeaways on how to manage money well.
1. Set up your own personal financial goals.
There’s no cookie cutter formula for financial success. We all have our unique experiences that define our financial and personal goals. What is important and aspiring for us might not hold the same weight for others, and with this, our money goals should be based only on what is important to us and on what we need to prioritize first.
2. Make your money work for you through passive income and mutual funds.
Investing in mutual funds will make your money grow faster compared with putting it in traditional money instruments like a time deposit account. The money you earn through investments give you a passive income, granting you more likelihood to reach your financial goals earlier. The idea of a passive income is to make your money also work for you. If you feel uncertain about investing, it is best to consult with financial experts who can help you understand how this can help you in the long run.
3. It’s not wrong to want things.
It is not wrong to buy luxuries as long as you can afford them. Sometimes, wanting the finer things can motivate us to aim for a better state of living and help us improve our earning potential. What is wrong is falling into debt for the things that you cannot manage to pay for.
4. Make a list of specific personal financial goals.
We cannot achieve what we do not measure. It is good practice to know the specific amount of money that you are aiming to attain, including your deadline to achieve this. This will let you know where you stand at the moment and help you fine-tune your strategies towards your financial goals.
5. Use money management tools such as budget apps to develop better financial habits.
We use our smartphones to take photos of everything, but why not use it to help us make better financial habits? Some of the recommended mobile applications are Wally and Powerone Financial Calculator. A good budget app should have a user-friendly interface, should let you track your past expenses, and should come with notifications for recurring bills.
6. Empower yourself with your big and bold financial goals.
Develop the mindset of setting concrete goals and of having a “can do” attitude. In the words of Aya Laraya: “Do not tell me what you cannot do, but tell me what you can start with today. We will work our way from there.”
Setting financial goals is important to achieve success in life. The more that you are specific about your goals, the more you will be able to follow an accurate roadmap to attain them. But this will be easier with the help of a Sun Life advisor. A Sun Life advisor can give you a personalized financial plan recommendation based on your needs and lifestyle. Get connected with a Sun Life advisor near your area by visiting this link.
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