7 Financial Milestones Every Fresh Grad Should Aim For

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

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.