Sticking to new year’s resolutions can be difficult when there’s no game plan; solutions are vague, goals so huge they appear unattainable.
Being responsible with one’s finances is one of the most popular resolutions. To help soon-to-be financially responsible individuals maintain their resolutions and not lose their way mid year, a leading insurance company shares these tips:
List them down
Before creating a financial plan, the first step is to know the person’s goals. From the most practical and urgent to the seemingly unattainable, it’s important to list them all down to help an individual visualize them and study them later.
Once goals have been noted, the next step is to reflect on the specific thing one wants to have. Is it a house or car, further studies, traveling, or save up for retirement or investment? It’s important to know the short-term and long-term goals as this helps in getting a headstart and preparing the game plan to achieve those aspirations.
Establish a budget
To determine the amount of money to allocate for savings and expenses, a simple formula to follow is “income minus expenses equals savings.” Subtract a portion of salary for monthly payments (utility bills, car, house, etc.) and a portion for lifestyle spending (shopping, travel, a night out, etc.) and what’s left should be set aside for savings on a monthly basis.
Build a fund
Investing should be part of everyone’s financial agenda, but it’s vital to be discriminating about what tools to use. When the savings have reached an amount that can be invested, Axa’s Asset Master can help in building a solid foundation for a person’s financial legacy.
Designed as a single-pay, investment-linked insurance plan, Asset Master allows an individual to build a diversified investment portfolio of local and global investments. Go to www.axa.com.ph for more information.
Keep track of your progress
Monitoring progress regularly helps in staying on track.