Not incorporating money wellness into your daily self-care rituals can have a profound effect on your overall wellbeing and happiness. Therefore, it is important to become intentional about what you’re doing with your money. Doing this can help you keep track of every peso, save and invest more, pay off debts, and eventually achieve financial freedom.
In this article, MICI is giving you five recommendations that are ideal and practical financial self-care tips:
The first step is to look at how much money you have coming in each month. This includes all your money sources. Next, know your expenses. Budgeting is all about telling your money where to go. After knowing your income and expenses, evaluate your needs versus wants. Rent? Definitely a need. Luxury items shopping? A want. This teaches you to live within your means. Finally, try to allocate at least 20% of your net income to your savings and investments.
Time is money. The earlier you start, the more time your money will grow — giving you a much bigger cushion when something goes wrong. Saving up between three to six months’ worth of your living expenses is a smart way to prepare for a financial emergency. Your emergency fund can be used during unfortunate occasions like a job loss, unexpected medical expenses, and home repairs.
If your emergency fund, travel money, and savings live in the same bank account, chances are you might be frequently tapping into your account for both essential and unnecessary spending. However, if you open multiple accounts for each goal, not only it is easier to see how much you have saved toward each individual goal, but also all your money is secured in case you exceed the FDIC insurance limit if one of your banks fail.
Make sure that you have prepared a list of what you want to buy and how much you would like to spend on each item days prior to your trip to the mall. This will help you stick to your budget, avoid overspending, and avert from impulse buys.
No matter how healthy you are or what financial position you are in today, you still need to get insured. Insurance will act as your financial safety net should any unforeseen event happen to you and your family.
Confused about how to start? Get the right insurance protection for you and your family with MICI’s affordable insurance products. For as low as ₱45, you can already safeguard yourself and your loved ones from financial stress due to accidental death, permanent disability, as well as from burial and medical expenses. You might also opt to protect your journey on the road with MICI’s TPL Policy for only ₱280 for motorcycle owners and ₱590 for private car owners. Secure yourself today: https://bit.ly/LifewithMICI.