Protection
Put yourself at ease by protecting those you love
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{{label}}03 October 2017
It may not have crossed your mind yet, but saving for retirement should begin as early as you start earning. As a yuppie, you have all the time to prepare for your exit from the workforce. No one wants to hit 50, and then stress themselves catching up on retirement fund.
Your paycheck shouldn’t be an excuse not to start saving today. Building your wealth shouldn’t be about how much you earn. It’s about how much you save and invest wisely.
Secure your future by saving for retirement as soon as you start working. Here are fast and easy ways how a yuppie like you can do it no matter how much you’re earning.
Education is a key component for progress, and when it comes to money matters, your first move is to know your options.
Reading personal finance blogs is a good place to start. Many financial bloggers are legitimate financial planners and advisors, and their posts contain the A to Zs in financial education including saving and retirement. Which retirement product can offer the best package for you? Does it match your income bracket? Do your research and look for answers to your questions.
This three-step strategy may be easier said than done, but it’s the best way to build your retirement fund.
First, outline the things that you want to achieve at a certain age or period like raising a quarter of a million by your mid-20s and building an investment portfolio of retirement by your 30s. The more detailed, the better.
From there, make plans on how you can achieve your targets. You can save a percentage of your monthly paycheck or look for second jobs to increase your income. However, all of this will be useless if you do not commit to it. So, you need to work efficiently, spend wisely, and save regularly.
Apart from discipline and self-control, saving money involves good judgment. Choose a saving method that you are most comfortable with, and make sure that it aligns with your means and goals.
One popular money-saving strategy is the Income - Savings = Expenses formula. Here, you treat savings as a type of expense that you need to pay first before anything else. This means that each time you receive your paycheck, you immediately save a portion of your income and then spend what's left. By following this, saving is given more priority.
Banks like BPI offer automated savings, where a fixed amount from your payroll money goes to your savings account. If your bank does not offer this service, consider having a separate savings account with a passbook issued to you instead of an ATM card. This way, you’re keeping yourself from the temptation of withdrawing cash from the nearest ATM on impulse.
The younger you are, the more aggressive you should be in investing. Starting early means better chances of reaping higher rewards when you turn 40 or approach your retirement. Remember, time is your ally when it comes to long-term investing.
Let your money work harder for you through compound interest. This is the interest you get from the interest of your initial investment. In other words, your investments gain earnings, and your earnings generate further earnings on their own.
Some affordable investment instruments available to yuppies like you today include unit-linked insurance funds, mutual funds, unit investment trust funds, or savings with life insurance which is now offered in your trusted banks like BPI. Invest your money as early as today, and by the time you reach retirement age, your initial investment would have grown exponentially.
Time is all on your side. Start building your retirement savings now for more opportunities to grow your money.
Now that you know your options, the next step is to get trusted advice from Bancassurance Sales Executives to help you boost your plans for the future.
You can buy a life insurance at any BPI branch nationwide! Talk to a bancassurance sales executive now!