Here’s What’s Keeping You From Achieving Financial Freedom
Financial freedom can mean different things to different people. In the end, however, most people long to live a life where you no longer need to worry about money and feel comfortable. While building your savings is a big step to achieving financial freedom, there might be several factors that can affect your journey. Here are a few things that you might need to review in order to move forward:
1. Not having a set goal
Not having a savings goal is like going on a trip without a destination. Without a clear goal in mind, making decisions on your expenses can be tricky and you will be more susceptible to mistakes that can damage your finances.
Take the time to sit down and think of where you want to be financially in five years. From there, you can come up with a short-term goal that you can work on. You may also look way ahead in the future and picture your ideal situation when you retire. Do you want to live in your own home? Do you want a steady source of income during retirement? The answers to these questions may help you decide on what your long-term financial goal should be and help point you to the right direction.
2. Putting off credit card payments
Paying off the minimum amount due on your credit card bill does not bring you any closer to financial freedom. Make sure to either pay your amount due in full or pay above your minimum amount due to cut down your debt significantly. Take note, the way you handle your debt payments affect your credit score. Create a game plan and practice consistent and responsible payment habits to make sure you’re on track with your debt payments.
3. Living beyond your means
As your income grows, the temptation to live a more extravagant lifestyle starts to creep in. Before you know it, you’re already living way beyond what you can actually afford. Practice mindful spending and identify your wants vs your needs. Ask yourself questions like, “Do I really need this?” or “Can I get this at a much lower price?” whenever you plan on making big purchases. Don’t forget to constantly track your spending to make sure you’re within your monthly budget.
At an age where everything is shared on social media, it’s quite easy to feel envious of the lavish lifestyle that online personalities are living. More so, when you see your own friends on expensive trips and buying luxury items. These things may push you to do the same because of the fear of missing out; when you’re actually not. So whenever you feel the urge to splurge, take a step back and think how this expense can affect your current finances. Remember, as long as you have a roof over your head, food in your belly, and your bills are consistently paid, you’re not missing out on anything.
5. Putting all your eggs in one basket
Sure, you have a bank account dedicated entirely for your savings, but are you sure that you’re getting the most out of your hard-earned money? Apart from diligently setting aside money for your savings fund, you must also make sure that your money does not remain stagnant. If you’re one to take risks, make use of a chunk of your current savings to start a business venture. With enough research, you may also dabble into several kinds of investments. Whatever you do, make sure your money grows.
With CIMB Bank, you can be sure that you can get the best value on your savings. Enjoy the best-in-market interest rate of 4% p.a in three ways! You can maintain a minimum balance of PHP 100,000 in your UpSave and/or GSave account or you can grow your Average Daily Balance (ADB) by PHP 1,000 each month to enjoy a higher rate on your savings. 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.
If you’re 18-25 years old as of March 1, 2021, the CIMB Savings Starter Pack is what you need. Just deposit at least PHP 500 each month to your UpSave and/or verified GSave account to enjoy 4% p.a. interest plus, you get a Personal Accident Insurance coverage worth PHP 50,000 for FREE.
Learn about getting 4% p.a. interest when you maintain P100,000 in your savings account with CIMB Bank!