Building wealth doesn’t mean waiting for someone to share it with
Single? You’re not alone.
Many Filipinos today are challenging the concept of being in a relationship, choosing to focus on their career or studies, according to Atom Araullo’s documentary, “Relationship Status: Single”.
A recent article in The Global Filipino Magazine also noted an increasing number of young adults staying single, where dating is fine, but commitment is…well, “Let go, and Let God.”
While there are many implications to this, one topic rarely discussed is money management as a single Filipino. How do you budget for one? What are the financial milestones for single people?
Let’s look at five financial milestones to consider as a single person:
Setting up an emergency fund
The recent string of typhoons taught us the importance of having an emergency fund.
Being single can be a blessing, but independence means that you don’t have a partner's income to fall back on when emergencies occur. It’s wise to save three to six months’ worth of expenses. Don’t be afraid or discouraged if you need to start small. Create a realistic budget to save part of your monthly income toward your emergency fund.
Prioritizing your emergency fund early gives you the confidence to pursue other financial goals without fear of sudden setbacks.
Investing in health insurance
In the Philippines, healthcare costs can add up quickly, even when insured by the state-run Philippine Health Insurance Corp. (PhilHealth) or your company.
Healthcare costs can become burdensome without a partner to support you during crises. Many overlook health insurance, thinking it’s unnecessary as long as they’re young and healthy. Only a few think of the “what ifs” and only want to invest money in something more tangible.
Yet, the reality is that investing in a comprehensive health plan can save you from depleting your emergency fund in one swoop. Look for policies that offer a wide range of benefits and fit your budget.
Start planning for retirement
Yes, retirement. Planning for retirement early – even as a single person – is a powerful way to ensure long-term security.
Consider starting with products offered by government corporations such as the Social Security System and Home Development Mutual Fund, known as Pag-IBIG. There are also more complex investment instruments like mutual funds or stocks. Even if you only invest small amounts now, the compound interest will build a strong nest egg over time. Think of it as future-proofing yourself against any life circumstance.
Building a solid investment portfolio
Having multiple streams of income can help ensure financial stability. Being single gives you more flexibility in your investment choices. Without consulting a partner, you can take risks and pursue higher-yielding investments.
If you're financially steady, diversify your portfolio with a mix of stocks, bonds, and even real estate. No need to rush this process: It’s perfectly okay to start small and get comfortable and familiar with different types of investments. You can also consider taking a class or working with a financial advisor to help optimize investment returns.
Consider estate planning and creating a will
It might sound premature, but estate planning is essential. As a single Filipino, your estate plan can help ensure your hard-earned assets go to those you want to benefit.
By creating a will, you can designate who inherits your assets, including siblings, friends, nieces, nephews, or even charitable causes close to your heart. A little planning now will give you peace of mind that your legacy is protected and distributed as you see fit.
As a single Filipino, your financial path looks different from the typical narrative of family-oriented planning, but it’s equally important. The freedom of being single allows you to set unique milestones and live the life you want more confidently.
Remember, building wealth doesn’t have to mean waiting for someone to share it with; it’s about creating a future where you’re financially resilient and secure, all on your terms.
We talk about this more in our Earnest e-book.
Disclaimer: This article is for general information purposes and does not constitute formal financial advice. Always do further research before making financial decisions and seek professional advice from a certified personal finance counselor. For more information, read the Earnest disclaimer here.