Sometimes, life will hit us hard and make us realize how important it is to invest in ourselves first. This is exactly what happened to Mal. Like her, we all dream of being financially independent. It might seem hard to achieve, but with the right mindset, spoiler alert: financial freedom may be within your reach!
Being financially independent requires a lot of bravery and determination. The majority of us consider that being financially free is an expression of self-love and care for ourselves. Take it from Mal – it’s not too late to put yourself first. Along with discipline and careful planning, here are some personal budgeting tips that can help you embrace the journey of life changes:
1. Set your savings goal
Setting a savings goal is not just about knowing how much money you want to save, but it’s also about determining how much you will be able to save realistically. From your net income where taxes have been taken into account, deduct your monthly expenses. Having a personal budget will provide you with a roadmap that shows where you should allocate your money based on your priorities.
Computing for what will be left of your money will let you clearly know how much you have left for your savings. It helps you stay on top of your finances so you can control where your money goes – and be capable of achieving your goals.
2. Consider unplanned expenses
There are unplanned expenses that may leave you with less money. To avoid this struggle, add a miscellaneous budget that can serve as your emergency fund. By doing so, you will still have enough money for uncertainties without using the amount you are keeping for your goals.
3. Evaluate and adjust
You should regularly assess your personal budgeting practices. One simple way to do this is by monitoring your expenses and debts. This will let you identify if you are living within your means or if you need to make adjustments because you are already spending way beyond your financial capacity.
4. Find a side hustle
Another way to make more money is by having multiple sources of income. By trying out part-time gigs, it will boost your savings to build your wealth. As you explore your skills and passion, it will help you to feel empowered as you find value outside your primary career. Here’s a related article on how you can maximize your income as a freelancer.
5. Insure & invest for yourself
Just like Mal, having life insurance and investments will hugely benefit you and your beneficiaries in the long run. Depending on your policy, you can use your plan as a fund for education, business, and other needs. There are many life insurance plans with living benefits that one can enjoy for their own goals.
Want to know how much life insurance you might need to protect yourself? Use our life insurance calculator here. You can also take an investmentality quiz to know the right investment for you!
It might seem hard to veer away from the routine of simply getting by from paycheck to paycheck. But while it sounds challenging, it is always achievable with discipline.
Personal budgeting is a good practice of discipline that will allow you to stay in charge of your spending urges and finances so you can have enough for your basic necessities and can save up for your future self.
As your Partner for Life, we can help you achieve your dream of becoming strong and financially independent. Watch Para sa Akin and just like Mal, kaya mo ‘yan!
Know the life insurance and investment options that are suited for you. Talk to one of our financial advisors today!
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