Starting out in life? 6 habits to help you become financially stable

Part of being young is about having big dreams, big goals, big plans for the future: it could be our own car or home, a business, or simply building a career for ourselves. But, when every day feels like the day before payday, those dreams may get pushed on the backburner as just another something to achieve -- someday.

But that someday must start somewhere. Even if we’re just starting out, we can establish habits to inch us closer to the future we dream of. Here are a few proven tips to build a solid financial foundation and manage our money to make the best of what we have.

1. Make a realistic plan you know you can follow. We plan so carefully to get our “grail” items, and financial stability isn’t so different. Set a schedule of small steps. If we target to reach X amount in savings by X year, how much do we need every month? If you’re a couple or family, make this plan together and help each other stick to it. The sooner we make our money work for us, the sooner we hit our goal.

2. Auto-save is our friend. If you’re paid regularly, set a fixed amount from your salary to be transferred to a personal savings account, or take advantage of savings accounts that has autosave options. Before you know it, you’ll quietly build a savings cushion, and you won’t even notice.

3. Build your own emergency fund. As recent storms remind us, we can’t avoid all emergencies. But we can prepare. Save up an amount equal to 3-6 months of your monthly expenses and set it aside in a high-interest-earning digital bank savings account. This will be your emergency fund. It’s still earning, but you can easily access it during car breakdowns, medical expenses, urgent home repairs, etc. You'll need to flex that willpower -- but with your own backup fund, you can mark yourself safe from costly loans from the internet, credit card cash advances or elsewhere

4. Play your (credit) cards right. Credit cards aren’t just for big purchases. They also help build your credit score, which is important for home or car loans later. Most cards also offer discounts or points programs for certain purchases. Use the discounts if they’re good, but don’t max out your card. Make it a point to pay your balance promptly, to keep interest from piling up.

5. Get regular checkups to stay healthy. Stable health helps keep your finances stable too. Checkups can spot health issues early on while you can still easily correct them. Worried about cost? One visit a year is much cheaper than getting sick.

6. Start your insurance early. We can plan every cent, but life often has other plans. Health and life insurance may not be able to prevent those things but having them can protect our finances and family from unexpected loss of income. And the younger you are when you start, the better a deal you can expect. So, it’s worth starting as early as you can.

Insurance rates go up as we grow up. So, the best time is now.

While, it’s good to sign up for insurance anytime, the best time is while we are still healthy and are able to afford it. It’s common knowledge that insurance rates are more affordable when you are young, because healthy young people are at lower risk of illness. By signing up for insurance while premiums are affordable, we can lock down good coverage for less money and have a strong safety net if we need it.

How to begin? Look into a savvy starter choice like FWD's SmartStart investment-linked life insurance. Starting at just PHP1,800/month, it offers life coverage up to age 100 (as long as the plan is kept active), inclusive of accidental death benefits and a waiver of premium to keep you covered should you become critically ill or incur total or permanent disability and unable to pay your premium. Plus, you have the option to add more life coverage, critical illness coverage and hospital cash benefits. For forward-thinking go-getters who are ready to protect their future and begin investing, SmartStart covers the bases. It’s the insurance plan for everyone – but especially for us.

Then SmartStart Lite investment-linked insurance could be your step up, especially if you’re a breadwinner or at the start of your career. This plan does the heavy lifting with minimum investment, with critical illness and accidental death coverage already part of the package. Plus, should life throw you a curveball with serious illness or serious injury, the waiver of premium means FWD will take over the payments to keep you covered and financially protected at a time when you need it most. SmartStart Lite starts at PHP 1,200/month.

SmartStart benefits you can count on

Getting your own insurance is a first step and SmartStart and SmartStart Lite are here for it. Both plans give you a one-time pre-approved guaranteed milestone bonus. This one-time 20% increase on your benefit amount is designed to help you cover a lifestyle change due to a major life event—be it buying property, university graduation, a new baby, your 10th year policy anniversary, or even retirement.

There’s one more big plus: the fee reinvestment benefit. Every plan has fees, but SmartStart reinvests these fees into your account value – it’s your reward for keeping your policy active. That’s more bang for your buck over time. For sure, #SmartYarn!

Start smart and play for keeps

In the long run, getting the best deal isn’t just about discounts today – it’s about practical financial habits you can do now to be more financially stable tomorrow. Get used to managing your money now, and you’ll thank you later. To start the smart way, take the first step.

Speak with an FWD Financial Advisor who can help you clarify your goals and get that smart start on your finances.