Are you young and earning wages? How do you intend to use the money? While there’s definitely nothing wrong with enjoying your keep, it’s equally important to get smart with your finances. Here are some decisions you need to make with your money while you’re still in the twenties.
Although more Filipinos are investing in life insurance, many still don’t for one reason: they think it’s a waste of money. But life insurance in the Philippines doesn’t only ease your beneficiaries’ financial burden in case of your demise, but, according to Manulife Philippines, it can also shield your growing assets. Moreover, with an investment-linked vehicle, you can both have coverage and start investing in bonds, stocks, or mutual funds.
Also, since the premium for this insurance tends to increase with age, it’s best to start when you’re in your twenties.
A Filipino who needs a hospital confinement may end up spending more than P10,000 as a partial bill. A private room in a private hospital can cost P2,500 a day. In other words, healthcare isn’t affordable in the country either.
While healthcare insurance can still be restrictive in terms of coverage, you can use it to pay for more expensive treatments, especially for critical conditions.
Of the many kinds of investments, stocks offer some of the highest returns. But they’re also one of the riskiest. To maximize your investment, let it sit for at least five years.
The stock market is tricky and complex, but the good thing about starting it young is you will have plenty of time to learn, leverage your knowledge, and bounce back from your losses should you have any.
Putting your money on these may feel like an expense, so to beat that mindset, consider this: in the end, your rewards will be greater than your efforts today.