Saving: It’s a personal obligation

Have you started thinking about your future?

Ideally, when you reach a mature age, you should have at least saved and invested your money to ensure a source of passive income. You have also achieved financial independence, having retired or are no longer relying on a 9-to-5 job to support yourself, your family, and possibly, your children.

Unfortunately, only a few can proclaim that they are financially independent. Most fail to save or invest. They also don’t possess the mindset of making sure they retire worry-free. For younger professionals in their early twenties or thirties, they are often complacent and not in a hurry to build up their savings for the future.

However, it’s not too late to turn this around, and consider what you can do now to become financially wise.

Consider these top reasons why saving as early as your twenties can be financially wise for you.

Establish an emergency fund

The COVID-19 pandemic has shown how unexpected events can take a toll on everyone’s financial health. This year, 3.5 million Filipinos lost their jobs or faced pay cuts due to the economic effects of the pandemic.

Should you lose your job today, do you have an emergency fund that can pay for your expenses until you can find another source of income?

Your emergency fund should at least be three to six months’ worth of your monthly income. This should allow you more than enough time and resources to find a new job or a new source of income. Having an emergency fund will help prepare you for unforeseen events like the pandemic that left many Filipinos financially troubled.

Investing your savings

Once you’ve set up an emergency fund, set aside money for your future. While saving on its own does not necessarily lead to financial stability, increasing your savings and moving some of that extra income to investments is one way to grow your money.

There are different types of investment tools in the Philippines. Choosing what to invest on depends on your risk appetite, your goals, and what you can afford.

Building a nest egg

By saving and investing, you can build your own nest egg for the future. Nest eggs are not limited to funding your retirement. It can be used for big purchases or improving your quality of life like buying a home or paying for your children's college education. This preserved capital can allow you to do more even without a regular job.

Retire and invest early

Start saving and investing at an early age. If you do that, you can retire early and spend the rest of your life doing what you love. Make saving money a habit. On top of that, make sure you stick to your budget, you set aside money for an emergency, and only buy items that you need. Having a saving mindset is one step towards financial stability and wisdom.

Wealth management: living a meaningful life

Know how to live a meaningful life by building your savings and securing your future. Having an emergency fund, a diverse portfolio of investments, and retirement savings mean that you’ve carefully managed your finances—and are one of the successful few who can say that they are financially independent.

Allow Metrobank to help you achieve financial independence by building your savings. Open a Metrobank Savings Account today.