Are You Financially Prepared?

Are you financially prepared? Foremost, I will not ‘cram insurance down your throat’. We’ve seen many persistent, and insistent, salesmen and saleswomen always in a hurry to close insurance deals with customers – customers, albeit, unwillingly agree to sometimes. However, we ask ourselves: do salespeople, including the insurance itself, really provide value to customers? Let’s talk about assurance in insurance.

I recently met someone who insured himself – a sum of money to be paid to his beneficiary in the event he dies. The longer he lives and the longer he invests (monthly), the higher the amount his beneficiary will get in his uneventful death. I also got insured at one point in time, in my previous employment, I will be paid if ever I would encounter an accident. The more limbs I lose, the more money I get. Yes. A moment of silence for that.

It pains me to know that, in general, insurance plays into unfavorable circumstances. Insurance, as per the dictionary, relates to protection. It would be nice to feel protected without dying or losing body parts. I do not judge insurance companies. I am sure they have a wide variety of interesting policies to choose from. However, the above-mentioned ones blew me away – far, far, farther away. Join me in this no-frill article providing subtle hints about insurance and how to be financially prepared for the future.

I recently attended ‘Let’s Have Some Funds’ hosted by Sun Life Financial at Dova Brunch Cafe in Iloilo. It was yesterday to be exact (June 22, Sunday). The highlighted topic is Money Under 30 by young entrepreneur Katrina Loring. Writing this now, it makes me think: why invest in something that you can ‘enjoy’ when something uneventful happens to you when you can invest in something that you can actually enjoy in perfect health (and being alive). When you can invest so that you can invest for more in the future – like your dream business venture. In Sun Life Financial, they have financial advisers. They are not just average salespeople with the sole intent of closing a deal, they are trained individuals knowledgeable in managing finances. I heard from a friend that Sun Life advisers actually guide clients in making informed choices. They assess your finances and suggest policies fitted to your needs.

Going back to being financially prepared, it’s a matter of frugality and being able to identify good investment opportunities. Miss Katrina Loring enumerated the major money mistakes young people make: zero savings, overspending, and credit abuse. She also highlighted the solutions needed to counteract these mistakes. These are to pay debts, pay bills on time, plan your budget, record your expenses, make savings automatic, and prepare for rainy days and dreams. Also, it is good to keep your money running. During my childhood days, I’ve always thought that keeping a piggy bank was the best thing to do to save money. Fast forward to nearly 30, I realized that, although saving money is okay, but mobilizing it to make more money is better. Keeping inflation rate in mind, yesterday’s flat savings would only be tomorrow’s meager amount.

According to Mr. Michael Gustilo, Visayas Regional Sales Manager of Sun Life Financial, one of the money regrets before 30 include spending so much on wants, starting late in managing finances, and settling for salary as the sole source of income. Who wants to be employed until they are 60? This is where investment comes in. According to Sir Michael, “having clear dreams and life goals will give you a compelling reason to save and invest rather than spend needlessly”.

Being financially prepared is very important. Aside from the fact that it makes you a legit adult, it enables you to enjoy more in life. In my opinion, these are the recipes to financial preparedness: financial awareness, frugality, securing stability, and finding good investment opportunities.

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