2 minutes
Building a future investment plan seems to take a backseat when you are young. Especially with those who are breadwinners, the focus seems to be always on providing for your family's daily needs, here and now.
But breadwinners -- no matter how hardworking or filled with good intentions -- are not sickness-proof nor accident-proof. A missed opportunity or an unexpected unfortunate event may in the future make you realize that you should have gotten that life insurance or savings plan early on.
There really is wisdom in preparing for the future, in being in a position to continue providing for your loved ones even when you can no longer work or if some unforeseen tragedy befalls you.
Here are four simple ways to shift from short-term thinking to long-term planning:
Move from spending to saving.
Building a strong financial foundation in your 20s, especially when you are a breadwinner or an early nester, begins with having the right tools.
Forget get-rich-quick schemes; it’s better to develop the habit of slowly but surely accumulating wealth. Start by putting savings as a non-negotiable part of your budget, making it a fixed component rather than what is left after deducting all of your expenses.
Plan for a healthier future.
It’s not enough to lay the groundwork for a more financially secure future, if you forget to take care of your health along the way. After all, health issues can drain your savings.
You don’t need to sign up for a lifetime gym membership on day one: you can start easy just by committing to take 10,000 steps a day, tucking in short walk breaks around the office or block. Remember, a sedentary lifestyle also comes with an increased risk of early mortality, which puts the people you support at risk, too. Living a healthier, longer, and better life can be easily accomplished, as long as you make those changes sustainable.
Move from short-term gains to long-term ones.
Savings will only go so far—life insurance will provide a more solid base of protection for yourself and your family.
A life insurance policy benefits you and your family over the long term: it can provide financial assistance to your family beyond your own lifetime, it can protect your family savings from future risks, and – assuming you get a variable universal life (VUL) policy – your insurance can potentially earn higher returns, enabling you to reach your financial goals in less time.
Use what you have now to build on your legacy.
Turning your wealth into a lasting legacy is crucial in ensuring your family's financial stability in the future. Your legacy lies in ensuring how your family will live, and not simply what you leave behind.
Insurance products like AIA Philippines’ Future Builder can help you secure your legacy. It's both a savings and wellness plan that gives you access to insurance, expertly-managed funds, and AIA Vitality, a science-backed wellness program that rewards you for the healthy choices you make.
With AIA Future Builder, you can play an active role in building your legacy for your loved ones. On good years, you can even put in additional payments (i.e. top-ups), increasing your savings and helping you reach your goals faster. And if you invest early, you’ll have more time to grow your legacy, with years plus compound interest working in your favor.
Making that shift to long-term planning may be daunting and challenging at first. But just like everything, building a future investment plan through savings and life insurance is a habit you can acquire if you start early enough and stick to it.
Seek help from a professional partner that you can trust to help you with insurance products for your every need.
