There is a growing trend of the younger Filipino generations becoming more smarter with their financial decisions. Today, Millennials and the Gen-Z are learning how to optimize their spending. They are learning about the importance of having emergency funds and the benefits of creating financial plans. Most importantly, they’re learning how to invest.
Investing is an excellent way to prepare for the future. Having an investment is a critical method of making your money work for you. The main goal is to rack up profitable investment returns. For example, if you invest in stocks, you can benefit from dividends and capital gains.
If you decide to invest in bonds, you can expect regular payouts or coupons in predetermined periods. But one of the best investments you can have is real estate, specifically, a home. By owning your real property, you can gain rental income and capital gains.
Investing in real estate can prepare you for early retirement, too. Financial independence and early retirement are not only becoming goals. They are becoming cores of a movement that has gained popularity among the younger generations.
Investment is also better than plain savings because it’s capable of fighting inflation. Having savings is indeed good. This is especially true if you’re savings are in a bank because they can get you interest. Unfortunately, your money can lose purchasing power in the face of inflation. That’s why it’s recommended to invest in various assets rather than keep a plain standing cash reserve.
Finally, investing in real estate can help you achieve your goals. You can eventually amass assets that even your loved ones can inherit. There are various options for you as well, depending on your needs. For example, one of the best financial steps is to own a condo if you are a city dweller. Take a look at a condo for sale.
A condo is more cost-effective and affordable than a free-standing house. It’s also more convenient because you don’t have to worry about designing the place’s exterior. You don’t have to worry about good landscaping, exterior wall paint, and roofing. You also spend less in terms of insurance.
The question is, how do you pave the way to becoming a homeowner? Here are some of the tips young Filipinos should catch up on:
Change Of Lifestyle
A change of lifestyle is the main route to take to become a homeowner. Filipinos have to make compromises when it comes to their earnings and expenses. Changing lifestyles doesn’t mean going cheap or holding back and living broke. It simply means prioritizing.
When changing lifestyles, Filipinos must learn to consider their income. Take a look at how much you make, and take a look at your sources of revenue. It would be best if you also started monitoring your expenses. Set your goal. Is it to save for a house or a condo unit? How much are you planning to make?
The most important thing about changing lifestyles is to evaluate your spending habits. How often do you go out to eat? How many packages from Lazada and Shopee come through the door every week? This is the chance to prioritize groceries and bills.
Pump Your Savings
It’s time to increase savings. And if you change your lifestyle by changing spending habits, you can have more money to save. One of the ways you can be creative about it is to consider savings in your spending plan.
You can also increase savings by depositing all the extra money you can get. For example, you can have additional savings by using coupons and purchasing on sale. You can also eliminate unnecessary expenses, even if it means passing out on shopping or traveling.
A more prudent way of increasing savings would be to hire a financial planner or simply by asking experts. Other methods include setting reasonable and specific goals.
Invest In Various Assets
When you start investing, you need to consider what kind of investments you want to make. It could be stocks, bonds, mutual funds, bank products, options, and annuities. We already covered stocks and bonds. Let’s try to decipher what the rest are.
When you speak of mutual funds, think about contributing public money to a single account. The money from that single account can be used to invest in stocks, bonds, and other forms of securities.
Bank products, meanwhile, refer to different kinds of services that banks offer. This could be insurance, loans, and mortgages. Options are basically like contracts that allow the holder to buy or sell stocks. And finally, annuities are like insurance contracts. They pay out predetermined amounts in periods.
There are no simple rules for investing in real estate. However, if you are determined to change lifestyles, increasing your savings, and investing in various assets, you will come close to becoming a homeowner today.