"I'll start saving up for my future self!". It's so much easier said than to execute, agree?
We can be highly motivated at first but motivation can be up to a certain extent only.
When faced with temptations most of the times motivation fails me. Or is it just me?
Then we'll find ourselves again back to zero. This also applies in any scenario that involves changing what we are used to doing (sample: eating healthy food, going to sleep early, exercising every day, etc)
That's why I gathered ideas that WORKS for me and to my friends and clients.
SAVING UP FOR SHORT-TERM GOALS
Short-term goals are those we'll be using in 1 to 3 years from now. These goals include saving up for a Vacation, filling up your Emergency Fund, or buying your own car and many more!
Here are my tips!
Set Clear Goals: Determine the exact amount you need and the timeframe in which you need it. It's much easier and fulfilling if you know what is your TARGET!
Create a Budget: Track your income and expenses to find areas where you can cut back and save more. Creating budget doesn't limit you. It actually helps you feel FREE because you'll know how much each category on your budget you can spend (or save).
Emergency Fund: Aim to save at least 3-6 months' worth of living expenses in an easily accessible account, like a high-yield savings account.
High-Yield Savings Accounts: Keep your short-term savings in accounts that offer better interest rates than regular savings accounts but still provide easy access to your money. There are many digital bank nowadays that have high-yield savings account. Utilize them while most of them are still free! I personally use CIMB, Maya, and GoTyme for my EFs!
Automate Savings: Set up automatic transfers to your savings account to ensure consistent contributions. Systematize your savings! System helps you execute better than just motivation.
SAVING UP FOR LONG-TERM GOALS
Long-term goals could include retirement, buying a home, or your children's education.
Set Clear Goals: Determine how much money you’ll need for each long-term goal and by when you want to achieve them.
Retirement Accounts: SSS pension can only do little when we reach our retirement years. Retirement accounts determine how much can you really enjoy your life when you're done working. That's why setting up your own retirement fund is a big help no matter how big or small you start. JUST START!
Investments: Consider investing in stocks, bonds, UITFs or mutual funds. The stock market can offer higher returns over the long term, although it comes with higher risk.
Consider Endowment Plans Endowment plans are guaranteed payout plans with insurance. It's a forced savings plan that you can utilize to maximize the growth of your money while being protected as well! Know more about it here!
Regular Contributions: Set up automatic contributions to your retirement accounts and investment portfolios. Same with short-term goals, setting up a system can be of big help when we're losing motivations
YOUR LIFE ENGINEER SPECIAL TIPS!
JUST DO IT! Do not overthink, most especially the budgeting part. Budgeting is a continuous improvement portion. Check what really works for you. Check this post about Basic Budgeting for Beginners to help you get started!
Monitor and Adjust: Periodically review your investments and savings progress and adjust your strategy as needed.
CONSULT A LEGIT FINANCIAL ADVISOR - You don't have to work solo on this. If you have a trusted financial planner and advisor around, seek for their advise. But if you do not have one, you may message me anytime here or thru my social media pages.
Remember Life Engineers, we can't improve something if we do not track or measure how we're doing. From there, we can know if we're making progress!
And that's making EVERY DAY 1% BETTER!
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Hi! I'm Reuel and I help Life Engineers have clarity with their inspiring financial goals through my AAA Financial Blueprint. Talking about budgeting and saving for short and long-term goals can be worrisome but with proper planning, we can create bite-size ways to make your financial goals happen. Let's schedule a discovery call here!
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