When it comes to your finances, there's no better time than the present to start thinking about your future. Sometimes, that's easier said than done. Between all the financial jargon and everyone else's opinions popping up during family dinner, knowing how to start can be a bit of a whirlwind.
However, the notion still stands–financial uncertainty is a reality. You're never 100% sure about what can happen to you in the next few years and what that would mean for your family.
To help you out, we’ve outlined the top safety nets for your family's financial future in case of uncertainties that affect your current income.
- Life/Health insurance
- Emergency fund
- Side hustles
- Investments
Life/Health insurance
Both life and health insurance are essential as they provide you and your loved ones with security and safety in times of need. The difference lies on when these needs will most likely occur and how they should be addressed.
Life insurance provides your beneficiaries with the means to live on their own without your financial support, while health insurance covers the prevention and treatment of possible health problems.
Metrobank's exclusive partnership with AXA will offer you peace of mind and prepare you for uncertainties. We have a wide range of life and health insurance plans that work for different needs and budgets.
For instance, you can have a health insurance plan for as low as PHP 1,500 a month that protects you and your family–helping you ensure that you are financially prepared for medical expenses. You can focus on recovery without hurting your family's expenses.
You can also help secure your family's future income with life insurance plans that can help them cope in case of your untimely demise.
Emergency fund
Also known as a cash cushion, an emergency fund is a foundation of good personal finance. It can save you and your family in the event something bad happens, such as a pandemic, loss of employment, hospitalization, or other unexpected events.
Your emergency fund should cover at least three months' worth of your living expenses. It’s even better if you can save up to six months' worth. The amount may look daunting at first but with discipline, you can achieve it.
You can start by taking 10% to 20% off your monthly salary and setting it aside. The important thing is that you build it gradually and surely.
Side hustles
Side hustles and freelance jobs can be a source of additional income, bringing in extra cash for your emergency fund. They will help you reach your financial goals much quicker than purely relying on your day job.
Side hustles can also help pay off debt so that you can focus on building your investment portfolio and reaching financial independence, securing your family's future even during uncertain times. For some tips on how to get started on side hustles, head over to this article.
Investments
Just because you have savings in the bank doesn't mean you're financially secure. Emergencies may make a dent in your nest egg and inflation will depreciate your hard-earned savings.
For better protection, it's always best to allot a portion of your income to long-term savings plans such as investments.
Investing isn't just an activity for the middle to upper class. With the wide range of investment products available today, you can easily find one that aligns with your current income level and financial goals.
Look into investing as an effective way to earn passive income, build wealth, and ultimately make your money work for you even after you retire. Your investments can also serve as one of multiple income streams, helping secure your finances in case one source dries up. Plus, if you take the time and effort to plant your financial roots early, it will grow over time, letting you reap the fruits of your investments when you’re older.
If you need ideas about the best ways to earn passive income for future needs, take a look at Metrobank's Unit Investment Trust Funds (UITFs). Let us help you find an investment plan that best suits your needs, budget, and risk appetite.
To find more essential knowledge in your journey towards protecting your family's financial future, click here to read more Financial Education articles and tips from Metrobank.
