Maricor Bunal
Filipinos are known for their “bahala na” attitude, that is why bahala na si Batman quote is so popular with all age groups because we relate to it. It does not help that we are one hugely religious, Catholic country, which allows us to excuse our indolence and insipidness with the belief “God will provide”.
Well, I personally believe that one should “do their best for God to do the rest.” Just like securing our future finances. We must do our best starting with these four (4) must have funds:
Health Fund
It’s true that your number one enemy is yourself or rather your body which is very susceptible to diseases we pick up just about anywhere, you will never really know. Which is why it is important to have health insurance to insure that you, including your family, get the full medical attention you deserve when you fall sick.
You might shrug it off with spite because you believe insurance companies are just cashing in more money from your fears. But isn’t our bodies’ deterioration inevitable one way or another? Might as well prepare to not experience it sooner in your life span.
Emergency Fund
There are different types of emergencies such as accidents, hospitalizations, past due bills, loans, layoffs, calamities etc. Emergencies don’t really knock on your door to let you know they’re coming in, they just happen, because there is no such thing as an unexpected emergency. Knowing this, it is important that you set aside enough funds, so when it happens it won’t put too much dent on your savings or force you to acquire high interest loans, you will hardly be able to pay off.
How much should you set aside? It’s up to you, but if you can save 6 times your expenses monthly then you are already somewhat in a safe zone.
Retirement Fund
“I will raise my kids to be responsible adults who are professionals so they can take care of me in my old age” is so archaic in these modern times. It makes you feel sorry to be a son or daughter. Just because you spent most of your money raising your kids does not mean they have the responsibility to provide for your needs when you become old and unable to generate income.
Did you actually just raise children to give you comfort when you aren’t able to? Did you not raise your kids so they can pursue their dreams, start their own families with no additional burden?
If you are the latter, then I do hope you have a retirement fund so you live in comfort in your old age and not become a financial burden. Needless to say, it does not mean that kids should not or must not provide or at least give back to the parents that raised them. What I meant is that it should not become an inevitable reality for your kids to have that kind of responsibility. Although some people make it their dream to provide for their family including their parents, again you as a parent should not remove the choice from them.
Investment Fund
If you want to be more than capable to provide for your needs and wants, you just don’t take your vacation money straight out from your pay or you’ll cry bitter tears of regret in the end. Planning to spend more than what is necessary is worse than not saving. Wanting to spend for your leisure is not a bad thing but if you don’t plan and save ahead of time for it then I pity your financial state. You most probably belong to those group of people who cries in chorus “I’m broke” a week after pay day.
What I’m saying is that, if you want to spend money on vacations or other luxuries without drying up your current saving (if you have one, that is), then learn to invest. Invest on a passive income such as mutual funds, stocks if you prefer risky ventures. And there will come a time you don’t need to work a day in your life because you already took care of making sure your investments work for you.
