One of the positive things that the lockdown has given us collectively is more time to think. People are spending a good amount of time thinking about the future, including long-term financial goals. The outbreak of the COVID-19 virus and the resulting economic downturn may have drastically changed everything, forcing people to take a more serious look at their finances and consider making some adjustments.
Millennials are especially affected because they are at the point of their lives where they start thinking and making some of the biggest decisions in life, like getting married, buying a place of their own, having kids, and needing to be more responsible with their finances.
To get started on building your financial resources, AXA Philippines, one of the country’s leading insurance providers, shares investment tips to help you accomplish your life goals:
Put together an emergency fund. Ideally, you should set aside at least three months’ worth of salary so you have money on hand for emergency situations. To build your emergency fund, consider your financial responsibilities, your current work situation, and an amount that you’re comfortable putting away for emergencies.
Don’t procrastinate. Many of you may be postponing investing your money, thinking you have all the time in the world to do it later or that you don’t have the budget for it. However, when it comes to investing, it’s best to just get started. The sooner you start, the sooner you can reap the benefits of your investment.
Invest towards your goals. Whether you’re wanting to get your first car, working towards a new educational degree, or saving up for the down payment for a condo, you should invest with your goals in mind. AXA Philippines can help make it happen with Goal Getter, a single-pay variable life insurance plan where your premium, less insurance coverage-related fees, is invested in your choice of investment funds. AXA Goal Getter allows you to build towards your goal with only Php10,000 as an initial investment and as little as Php5,000 in monthly top-ups.
Diversify your investments. They say you shouldn’t place all your eggs in one basket. This is also applicable to investing. Secure your funds by diversifying them or spreading them around in more than one investment option. That way, you may minimize losses when the market drops.
Spend wisely. Before making big-ticket purchases, think long and hard if you really need it. Otherwise, set aside the money for your savings or retirement fund. Remember that even a little savings can go a long way.
Many millennials have hesitations when it comes to investing, but the key is to just begin and make smart choices so that they have funds to fall back on in the future and during uncertain times. To know more about AXA’s Goal Getter, visit www.axa.com.ph or talk to a financial partner via the landline +632 8 5815-292.