To achieve a better future, here are some tips on financial sustainability that we can do as a family:
1. Create a budget. An effective financial sustainability strategy is to create a budget for the family. It can be a weekly or monthly budget that the family can follow to manage expenses.
There are times when we are tempted to overspend or to buy impulsively, especially during payday. To avoid this, the family can write down the essential needs like groceries and bills to be paid for the month.
2. Teach kids to be financially responsible. Educating children on the importance of saving money for the future is a financial sustainability strategy. You can teach the younger ones in the family how to save and spend money wisely. Remind your kids about financial responsibility when it comes to using their allowance. Start to teach your children early in life so they can learn and get used to it in the long run.
3. Invest wisely. Another financial sustainability strategy is to save and invest hard-earned money in various initiatives like mutual funds. This is essential if we are looking forward to achieving long-term goals like buying a dream house or being financially stable during retirement. Aside from saving money in the bank, investing can help increase your family’s wealth.
Sun Life Asset Management Company, Inc. (SLAMCI) has a suite of target date funds. The Sun Life Prosperity Achiever Funds grow one’s mutual fund investments over a specific period. These are suitable for future financial goals like paying for a child’s education or retirement.
4. Reduce debt. Debt prevents us from becoming financially sustainable. Reducing debt is a financial sustainability strategy that we must prioritize all the time. One way to minimize debt is to pay high-interest credit card balances in full upon its due date to avoid financial charges that accumulate as a revolving borrower. Use credit cards responsibly and do not max out by spending on expensive and large purchases. Pay debts on time and avoid them from piling up.
5. Consult a financial advisor. An effective financial sustainability strategy is to seek the advice of a financial advisor when it comes to monetary concerns. It is sometimes tough to manage our finances, especially if we do not have enough knowledge of how to handle them properly. Financial professionals can create a plan to help us grow our money and be financially stable for the future so we can achieve our long-term goals for the family.
Sun Life Philippines has well-versed financial advisors who can guide clients by developing suitable plans and providing strategic advice. Need to seek advice on how to be financially sustainable? Talk to a Sun Life advisor today!
6. Get a life insurance. Buying life insurance is one of the financial sustainability strategy. Sun Life Philippines offers various insurance products that are suitable for the specific needs of the family. SUN Smarter Life Classic is a protection plan that provides double life insurance coverage throughout the client’s lifetime. It also has living benefits that can be used during emergencies or immediate need for cash.
Limiting spending, paying debts, and investing hard-earned money are just some of the ways that when done together as a family can help us attain financial sustainability for a better future.
Having a good financial sustainability strategy is useful to help us manage your money more properly. Aside from gaining financial independence, you can save money and assist the family when unexpected life events happen.
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