Put yourself at ease by protecting those you love
10 May 2022
Your finances can often become the root of your stress and problems. It's hard to maintain a positive outlook in life when your bank account is close to zero. However, there are several ways for you to attain a healthy mindset for that financial peace of mind. One of the best ways to ensure that you are stress-free financially is to take the time to prepare yourself.
Being prepared is key to becoming financially secure. While several people have different methods of doing so, they all essentially have basic steps in common. Achieving financial peace of mind requires building simple habits that have compounding positive effects in the long run.
Before we go over these habits, let's briefly talk about financial peace of mind: what it means and why it should be one of your personal finance goals.
What is Financial Peace of Mind?
The concept of having financial peace of mind is defined by how well you understand how your money impacts your relationships. It is also about how money affects you emotionally and spiritually.
To gain financial peace of mind, you must first find a balance between these aspects and avoid overlooking possible risks. There are several methods of doing this, but you can start with the steps indicated below.
1. Determine your current financial situation
Everyone's financial situation is different. Before you can balance your finances, you must determine your current financial situation and what causes you to stress over it. Common problems often include not having enough money to cover bills, not saving enough cash after expenses, etc.
2. Make smart management decisions with your debt
Make a list of what you usually spend every month and determine which of these are essential and not. Once you have this list, you can create a balanced budget to stick with to help you pay off any debt and avoid further problems in the future.
3. Beopen about financial talk with your partner
Financial problems can affect how your relationships play out. Talk to your partner about each other's finances and how both of you can manage them wisely. By doing so, you can determine a safe budget that will allow you to have financial peace of mind. Despite the difficulty, the habit will become easier over time and enable you to reach your goals.
Read: 8 Money Questions to Ask Your Partner
4. Build a financial safety net and emergency fund
It would help to have a security net for your finances as early as possible because it takes time to build one. Standard methods include getting life insurance, buying a home, and developing an emergency fund. These savings should last you and your loved ones 3 to 6 months or as needed if you cannot attain regular income anymore.
5. Outline your goals for the future
Setting a plan without a goal can easily cause you to become unmotivated and inconsistent with your finances. Create a realistic goal for yourself, depending on your financial capabilities at the time. This will act as a reminder and motivator for you to gain financial peace of mind.
6. Make payments automatic (auto-debit)
Paying your bills as early as possible eliminates additional stress for you that can accumulate over time. If you have a credit card, consider setting automatic payments to essential factors such as home utilities and phone bills.
However, to do this regularly, you need to establish a safety cushion in your bank account, which may take a bit of time to pile up depending on your financial status.
7. Know where your money is going
Having a financial tracking app can help you easily determine your spending habits. This will help you better understand yourself and attain a sense of control over your money.
Small changes towards bigger impacts
Throughout human history, money has been a source of mixed emotions and problems for many. Because of the uncertainties in life, we cannot fully determine how much we need to keep aside for safety. As a result, we often become stressed and frustrated over situations we cannot control.
Adopting a healthy mindset towards your finances as early as possible is one of the best ways to stay stress-free when it comes to finances. This is because attaining financial peace of mind takes time and effort to achieve.
Despite the ongoing pandemic, you can still start making small steps towards financial peace of mind by making the right investments. Contact us today to find an easy way for you to get insured during these uncertain times.
You can buy a life insurance at any BPI branch nationwide! Talk to a bancassurance sales executive now!
Get the power to protect yourself and your family with an affordable life insurance plan. Life Ready Plus is easy on the budget, but offers coverage of up to 30 times your yearly payment to support the financial needs of your loved ones.
The plan gives you fast access to coverage and benefits and can match your long-term financial goals when maintained within an appropriate term.
Critical Care Max will help you make more memories by providing financial aid during the early stages of a critical illness. This unit-linked life and health insurance plan offers assistance on your recovery. You can build a health fund that grows over time, depending on your chosen investment, to pay for other medical costs.
In addition, it comes with a hospital confinement benefit that will replace lost income due to hospitalization. This daily cash benefit may also come with optional benefits like cash payout for surgery-related expenses, allowance for consultation fees, and many others.
Let your loved ones enjoy the fruits of your labor even when you’re no longer around. Build Estate Plus is a unit-linked protection plan that will cover your estate taxes after your passing so that you can ease your family’s burden.
It doubles as an investment savings fund that builds Account Value as you pay. It is also integrated with AIA Vitality that provides additional upfront coverage of 20% to your policy and add-ons.
Be in good hands in times of sickness. Let Critical Care Plus, a unit-linked health and life insurance plan, take care of you with financial aid in case of a major illness, so you can focus on getting better and spending more time with your loved ones.
It even gives you more benefits for having good health through the AIA Vitality program that adds 20% upfront coverage and supplemental benefits on your policy.