Let’s be honest; nobody really wants to work forever just to earn money. Preparing for the future is no easy task, but it doesn’t mean it’s impossible to be financially free. Don’t know where to start? Check out these five simple things you can do to get your closer to financial freedom.
1. Set your short and long-term goals
If you don’t have goals, you’ll most likely mismanage your finances. Make sure to set goals so you know what steps you need to achieve them. Short-term goals can be anywhere you want to be financially in the next five years like having an emergency fund. On the other hand, long-term goals help prepare for the distant future, such as your retirement. Throughout your journey, keep in mind that progress is not linear, just be consistent and you’ll soon reach your goals.
2. Maintain a better cash-flow
The key is to identify a budget that works for you and stick with it. You can start by writing down your monthly expenses including your rent, bills, food expenses, and other financial obligations you have. Make sure to factor in savings and have some funds set aside for travel or leisure to strike a balance between responsible spending and self-care. You can also try the 50, 30, 20 method wherein you put 50% of your income for your bills and expenses, 30% goes to investments, while 20% goes to your savings. Pinning down your budget not only allows you to better control your money but also helps you identify areas where you can improve.
3. Create a new stream of income
Let’s face it, having a steady job and income is no longer enough. Creating another stream of income apart from your nine-to-five can help fast track your journey towards your goals. However, this doesn’t mean you need to work for two different employers. You can find other ways to earn money that won’t cause too much stress.
You can start with your interests. Look for ways you can monetize your hobbies and passions. For example, if you’re into filming, you might want to consider vlogging. If you’re passionate about coffee brewing, maybe starting a small coffee business is just for you. There are so many options to choose from, but make sure to find something that is sustainable and you know you will love.
4. Learn a valuable skill
A tried and tested way to increase your income is to learn a profitable skill. Hard skills like coding, cloud computing, UX design, and artificial intelligence are good areas to explore to future-proof your career. Soft skills like leadership, critical thinking, and communication are the best to hone as they continue to be in-demand.
5. Make your savings work for you
One common mistake many people make when it comes to savings is keeping their money where it remains stagnant. That’s why it is important to look for places where your funds can grow. If you love taking risks for the promise of high returns, you can consider investing. If you’re comfortable with patiently waiting for your money to grow, putting your savings in a high-interest account like CIMB Bank’s UpSave is the best way to go.
At CIMB Bank, you can get the best value on your savings with up to 8% p.a. interest! Start by getting 4% p.a. interest in two ways when you maintain a minimum balance of PHP 100,000 OR by growing your Average Daily Balance by at least PHP 500 every month in your UpSave and/or GSave account.
Earn an additional 2% p.a. interest by paying your Personal Loan Installment due or REVI Credit Minimum Amount Due on time. You can also earn additional 2% p.a. by transacting with a minimum of PHP 500 on the all-new CIMB Bank PH app.
Average Daily Balances in excess of PHP 200,000 will earn 2.5% p.a. for UpSave and 2.6% p.a. for GSave. Plus, if you maintain a minimum of PHP 5,000 in your account, you are eligible for FREE Life Insurance coverage that’s worth your ADB up to PHP 250,000.
Click the link below to learn how you can earn up to 8% p.a. interest on your savings:
Deposits are insured by PDIC up to P500,000 per depositor.
CIMB Bank Philippines, Inc. is regulated by the Bangko Sentral ng Pilipinas as a Commercial Bank. You may contact the BSP Financial Consumer Protection Department at (+632)8708-7087 or firstname.lastname@example.org.