“I cannot commit!”, a Millenial client uttered yesterday.
She is currently working abroad and she fears that she might want to come back home in the Philippines anytime soon as she misses her family badly.
Change nowadays is very fast and with the current pandemic, the future is full of uncertainties. A person would like to have a life insurance coverage to protect her family and also to ensure her retirement funds but hesitates because of the future premium commitments that he or she needs to make.
Are these your current concerns too?
- Fear of redundancy at work.
- Fear of a family emergency.
- Fear of life changing events (like getting married or having a child).
Yes, these uncertainties matter and can affect your budgeting resulting in you unable to fulfil your commitments to your life insurance coverage.
Here are some tips on how to manage this concern.
- Start small.
Start small and invest the excess funds to be allocated for future premiums. In this case, it is as if you already fully paid your future premiums. The good thing here is that the excess funds are growing.
- Law of attraction.
Do you believe in that? I do.
In our subconscious mind, we are thinking of the committed amount that we have made. Subconsciously, your mind is thinking already on how to fund it or source it. You start to prioritize by setting aside money, then eventually, it becomes a habit. In the end, you will be surprised that you are now able to save more than money you can. It’s magic.
I started saving Php 10k per year at age 22, slowly increased to Php 40k per year, then I doubled it and now quadrupled it and so on.
I’m certain that you can do this too.
Do not limit yourself. Think big.
3. Develop the habit of budgeting.
Always identify your needs and wants. Having obligations helps you to become more responsible in spending. Before purchasing anything, assess and evaluate if you really need it or not. Usually, if you do not have any commitments, the tendency is to be careless in spending. You keep on buying what you want or things that attract you. Most of the time, it turns out that you don’t need it pala.
As for me, I deliberately increased my yearly premiums to discipline me in saving and to avoid becoming a reckless spender because I can be one especially if the “Sale” is around the corner.
If you find these tips helpful, feel free to share this article to your families and friends.