Filipino Millennials: How to Overcome Your Financial Dilemmas

Early this year, the US News and World Report put the Philippines on the list of top investment destinations due to its relatively large young population. It is partially made up of millennials – people who were born between 1981 and 1996. These young people are usually considered as an exceptional bunch, except they aren’t really the best generation when it comes to finances. If you are a millennial and you live paycheck to paycheck, here's how you can get around your finances.

Be financially literate

Financial illiteracy is one of the root causes of the money problems of Filipino millennials. According to Global Filipino, only less than 1% of the Philippine population invest in bonds, stocks, government securities, and mutual funds. Filipino millennials may constitute a third of the nation's population, but only quite a few are financially savvy. If you find this alarming and you want to start learning about financial management, it’s never too late!

Cut your spending to save more

Another reason why many Filipino millennials are financially incapacitated is they are bombarded with a lot of financial responsibilities. Many of them are breadwinners who constantly support their parents and pay for their siblings' education. From matriculation fees to family debts, these duties always tend to burden many young breadwinners. If you are the breadwinner of the family, you can still set aside some money for savings by reducing your expenses.

Earn extra income

Many Filipinos are affected by wage stagnation in which there's no income adjustment despite inflation or remarkable economic growth. This is according to the Philippine Economic Update report, produced by worldbank.org. If your income has not changed and is too low, making it impossible to save money, then it’s best to find other means to earn extra money.

Invest in Variable Life Insurance

Life insurance is an investment you build not for yourself but for others who depend on you. It’s not unusual that people approaching their 30s have already started a family. Plus, you might have other family members that depend on you.

To maximize your earning potential, you can get a life insurance that doubles as an investment. VULs or Variable Life Insurance pretty much gives you that: a cash-value life insurance that has both death benefit and investment features.

The investment feature works like a mutual fund wherein the cash value can be invested in a variety of separate accounts. Insurance companies like Pru Life UK - offer different types of VUL that’s tailor-fit to your needs, with flexible term options, loyalty bonuses and optional add-ons to choose from. Check out their VUL options here.

Tip: Insurance companies can help you design a comfortable investment plan that fits your budget. Set aside 10, 15, or 20% of your salary to fulfill insurance premiums.

Want to know more about Variable Life Insurance? Contact Iveelene Dy on this link - https://www.messenger.com/t/iveelene.dy

Source: Peso Economics