The younger generations are now more conscious of money matters and the importance of taking concrete actions to financially secure their future. They have witnessed the impact of the recent global pandemic that dragged down the economy and still experience the continuous challenges brought about by inflation.
A 2023 survey from the Bangko Sentral ng Pilipinas reveals only 1% of Filipinos meet the criteria for financial literacy. Pandemic repercussions, like 14-year-high inflation rates and global recessions, have been wake-up calls for Gen Zs and Millennials to pursue financial literacy.
As we usher in 2024, many will create New Year’s resolutions such as losing weight, reducing stress, or spending more quality time with the family. Research from the SWS indicates that 96% of Filipinos will enter 2024 with hope, perceiving it as an excellent chance to turn things around or build on their accomplishments in 2023.
If you’re a member of the Gen Z or Millennial generation, this article can help you focus on creating sustainable financial resolutions that can leave a lasting impact.
Here are five guidelines to help you create an maintain your financial resolutions this 2024
1. Set your goals and intentions for 2024
Committing to a resolution the entire year can be quite challenging. Failures can happen along the way if you just create goals without carefully planning what you want to achieve. 365 days are long so we must examine goals and desires to determine if these are the things you want to accomplish. For instance, we want to curb impulsive buying and save a quarter of our salaries for some profitable to grow our money. Start contemplating with the end in mind. If we have the strong motivation to reach our goals then it is time to make a financial resolution.
2. Avoid obsessing over following a financial plan perfectly
It helps to have a financial plan that can guide you in the challenging areas of budgeting, saving, and investing money. However, you must remember to avoid obsessing over following the plan by the dot and getting stressed out when we fail to do so. Flexibility is needed when unexpected events happen. Follow the financial plan as a guide but adjust when certain situations call for it.
3. Use a free finance monitoring tool, or pay for one if you have the budget
Younger generations need a budget or debt monitoring tool to help monitor and control spending habits that can make or break the finances. Tracking how you save and spend money is vital for our financial stability in the future. There are several you can use to match your personal needs.
Check out the Sun Life Expense Calculator to find out where your money goes and see how much you can save and invest. Sun Life also features a free Money for Life worksheet to help you achieve your short- and long-term goals, and a free Financial Organizer that keeps your connections to wealth and health institutions in one place.
4. Allocate funds for investments, touch-free
Automating contributions is a good way to build wealth. By automating your investments, payments are never missed as they are automatically withdrawn from your account and transferred to a chosen investment portfolio. It also saves time and effort as it consistently invests a fixed amount of money on a predetermined date into a portfolio.
Payment is sometimes challenging. Holding thousands of pesos in your wallet might tempt you to make an impulse purchase, especially with the hours of commute that visiting your payment center might entail.
The Sun Life Auto-Invest program enables you to make automated contributions to your Prosperity Funds and enhance your returns without fiddling with online wallets or traveling to a payment counter. Banks and other financial institutions usually have similar offerings.
5. Explore insurance plans
It is important to evaluate and select a suitable insurance plan for our financial goals. This will secure our future and protect us from worries when life throws some surprises along the way. Start the year on the right path by seeking help from a trusted insurance company that offers various insurance products to meet our financial needs at every stage of life. Sun Life has personal and family life insurance products such as the following:
Sun MaxiLink Bright is an investment-linked life insurance plan that has the combined benefit of insurance protection and investment that enables us to grow our money over time. With coverage until age 88, this plan gives the insured financial security and peace of mind.
SUN Smarter Life Elite is a protection and savings plan that offers double life insurance coverage throughout the insured’s lifetime. It has lifetime guaranteed cash benefits that you can use to increase savings and fund future goals.
Sun Legacy is a protection and savings plan that helps preserve wealth and pass it on to your loved ones through the guaranteed benefits the plan provides. It has coverage up until age 100 to ensure a sustainable stream of income at any important stage in life.
Millennials and Gen Z can seek professional advice and help such as creating an effective financial plan for the new year. This will guide the younger generations in sustaining and achieving their financial resolutions by year-end. Connect to a Sun Life financial advisor today!
ALSO READ: Taking steps towards financial independence for Millennials and Gen Zs