Put yourself at ease by protecting those you love
10 October 2022
After the bliss of graduation comes some of the most anxiety-filled but exciting times in a young adult's life. Understandably so, as your 20s will often define what your 30s, 40s, and even 60s will be like.
Once you've gotten your diploma, the next step is taking financial goal setting seriously. Setting your financial milestones early will allow you to focus on what to work on. It also gives you direction as you build a firm financial foundation, helping avoid misspending your money.
If you aren't sure where to start, this article will identify some milestones to help you with financial goal setting.
7 Financial Milestones Every Fresh Grad Should Aim For
Below are key financial milestones to put on your list of financial firsts.
1. Open your first bank account
A bank account is a secure place to receive, save, deposit, and use your money. Although essential, only 53% of adult Filipinos have a bank account.
You should open a bank account under your name as part of your journey toward financial independence. You can open different types of bank accounts, the two most popular being checking and savings accounts. Although, maintaining other accounts for specific purposes, like paying bills, groceries, and leisure, is yet another smart way to save money and an efficient budgeting strategy.
2. Land your first job
Before diving into your job hunt, it's important to set criteria. Here, the starting salary shouldn't be your only consideration.
The company's health benefits are an essential point to consider, too. Look for a company with a great HMO or health insurance provider, as this can save you a lot of headaches should the unforeseen happen. So, do your research before saying yes to a job offer.
3. Start your first emergency fund
Not everything will go according to plan, so you should build an emergency fund and make it among the top of your financial priorities. A financial safety net cushions you from the economic impact of unforeseen events, like the following:
• Repairing your gadgets if they suddenly break
• Medical emergencies like sickness or accidents
• Sudden unemployment
Your emergency fund should be approximately three to six months' worth of your monthly expenses.
4. Get your first insurance policy
You should get life insurance for the same reason you should build an emergency fund: you don't know what could happen in the future. Life insurance helps protect your finances from unforeseen expenses and gives you the power to cover your family's finances should the worst happen.
Consider BPI AIA's Variable Universal Life Insurance (VUL) plans for a reliable life insurance plan. It acts as both an insurance and investment, meaning you can protect yourself and grow your money with one insurance policy, hitting two birds with one stone.
5. Apply for your first credit card
The credit score is a significant part of adult life. It can influence how easy it would be for you to apply for loans and even property leases. The best way to build it is by applying for a credit card.
Don't let credit card horror stories frighten you. In reality, credit cards can be helpful, especially in an emergency where you don't have money on-hand to spend. As long as you practice good financial habits and pay your bills on time, your credit card can be an effective way to protect your finances.
6. Make your first investment
Contrary to what many believe, you don't need to have a lot to start investing. In fact, the earlier you start investing, the better since you can take advantage of compound interest. There is an array of investment products that can help you get started building wealth.
Typically, newbie investors tuck away their hard-earned income in relatively safe bonds or bond funds. If you're more tolerant of risk, you can try investing in stocks and REITs. The key is to research before jumping into an investment opportunity.
7. Start your baby steps toward building a retirement fund
Like investing, it's never too early to start planning for retirement. A typical retirement fund misconception is that government contributions will be enough to cover your future.
In reality, diversifying your investments is better. So, aside from the government's mandatory pension fund, you can consider starting a retirement fund to support you in your later years.
An ideal retirement fund diversifies your portfolio rather than puts all your eggs in one basket. You may consider stock and bond funds, but don't overlook the power of insurance plans and how they insulate your retirement savings from the effects of untoward incidents.
Get Started Reaching Your Financial Goals
As you mature into a responsible adult, you must shake off your old financial habits and adopt healthy ones. For starters, you should aim for these financial milestones to help you form a solid foundation across life stages.
To build your financial safety net, schedule a virtual appointment with a Bancassurance Sales Executive to discover the best insurance policy for you.
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.