One of the biggest obstacles to building wealth is not having the discipline to leave your savings alone. Compounding interest cannot have its full effect if you are constantly withdrawing from your savings funds and investments in moments of temptation. Build a firewall around your savings and give yourself freedom to spend within limits by opening spending accounts dedicated to dream expenses.
Every month, after setting aside money for essential expenses (such as rent and monthly bills) and long-term savings investments, keep the rest of your money in an account meant for miscellaneous expenses. This can be used for things like spur-of-the-moment shopping or going out to eat. From there, think about the goals you want to save up for in the near future. Is there a big trip you want to take this year? Or a designer bag you have your eye on? Open a separate spending account for each goal and deposit a portion of your miscellaneous money into them each month until you hit your goal. Being intentional about your spending will help you achieve your dreams and curb the temptation to dip into your long-term savings.
With a low minimum premium of Php2,100 a month, Life Ready Plus is a great insurance plan to help you get started on the road to a financially-secure future. You can start small with basic life insurance, and then customize with add-on benefits and investments in up to 10 professionally-managed funds when you're ready.
Life Ready Plus is part of the BPI AIA's health and wellness programs powered by AIA Vitality – a wellness program that rewards a healthy lifestyle. Enjoy an upfront 20% additional life coverage and supplementary benefits by making healthy choices. Boost Vitality Status and get up to a maximum of 50% additional coverage on the succeeding years. Plus, avail of discounts from a range of partners as a reward for living healthy.
To find out how you can take the first step in living longer, healthier, and better, check BPI AIA Wellness Series.