4 Ways to future-proof your savings against the unexpected
August 22, 2023
Life is full of surprises, and many of them come with a hefty price tag. Whether it’s a sudden medical emergency, a natural calamity, job loss, or a global crisis, unexpected events can easily strain your wallet if you’re not prepared for the worst.
That’s why it’s vital to have a savings fund easily accessible in times of need. But what if that fund is meant for something long-term such as building your dream home, preparing for your child’s education, or retiring comfortably?
In this blog, we’ll guide you through proactive measures to build a solid financial safety net. By implementing these strategies, you can protect your savings for your long-term goals and take control of your financial future with confidence. Read on:
- Build an emergency fund
An emergency fund is cash intended for unforeseen events. It is a safety net to prevent you from dipping into your long-term savings and help you recover should a financial shock hit you. Having said that, building an emergency fund is not only necessary but a MUST.
Although, let’s be honest: saving money is hard, especially with inflation continuously flaring up and you’re living paycheck-to-paycheck. But even a tiny amount (e.g. PHP 100) can provide financial security as long as you’re consistent. The rule of thumb is to save money for at least 3 to 6 months of your income. You can adjust the goal amount based on your lifestyle needs.
- Set up automated savings
One effective way to protect your savings is to automate the process. By doing this, you ensure that you’re consistently saving money before you have a chance to spend it. Remember the golden rule: pay yourself first.
To boost your savings, you can put it through a time deposit or a money market fund and build wealth over time! The good news is you can start with these investment channels for as low as PHP 6,000. Make sure to increase your savings rate as your income grows.
- Reinforce insurance coverage
Getting insured provides an extra layer of protection and prepares you financially when the inevitable happens. Another best thing about having insurance is that it never depreciates. So to maximize its benefits, the earlier you start, the better.There are different types of insurance available in the market – from life to health to home or property insurance – each with specific purposes. Make sure to consult with your financial advisor, so you can choose which insurance is the right one for you.
- Get financial assistance
Contrary to popular belief, getting a loan is not bad. It’s actually the opposite. Did you know that a loan doesn’t only provide financial relief but also helps augment your savings?
There are many ways to turn your loan into a long-term investment, such as using it as capital to start a business & earn a passive income, beefing up your emergency fund, or financing big purchases or medical expenses.
We’re here to help you get the best solution for whatever you need, so you won’t have to touch your savings and continue pursuing your BIG dreams! Discover our salary loan products today by clicking the button below.
Remember, your savings represent your hard work and aspirations for the future. Treat them as a valuable resource that needs to be protected and nurtured. With a robust financial safety net, you can weather any storm and ensure your savings, especially the ones you intended for your long-term goals, remain intact.