Have you talked about how to manage your finances?
Most newly-weds ask themselves this: “How are we going to raise a family?” Obviously, money is one of the answers to the question. The challenge, however, is figuring out how to manage your money so that you have more than enough for your needs, planned or otherwise. So, here are several things you can do:
Develop a budget mindset.
Many people are turned off by the idea of budgeting because it feels like they’ll be losing out on the fun things in life. But since you’re married, your family is now your priority and you need to be mindful of how you spend. For starters, try what is called the envelope system for budgeting money. Here's how it works:
Soon-to-be parents need to have a clear picture of how much they are earning, how much is being spent and where is it being spent.
One way of tracking your spending is to create a spreadsheet detailing all your expenses each month. You can find a variety of templates online, available for free. There are also free smartphone apps that can help track your spending.
At the end of each month, sit down with your partner, review your spreadsheet and decide which things you should spend less on and which ones you can probably live without.
Have an Emergency Fund
It’s always wise to set aside around 3-6 months’ worth of your salary should anything unfortunate or unplanned happen, such as a natural disaster, a major house renovation, sudden illness in the family, or loss of employment.
Having an emergency fund means you don’t have to borrow money and be in debt, and it provides you some peace-of-mind.
Think about passive income
Passive income is an additional source of money that requires little effort or involvement from you. It could be a small side business, real estate, and savings in a high-interest bank account or a venture into investing.
Yes, your monthly salary can cover your bills and pay for the occasional vacation. But wouldn’t it be better if you had two or three additional sources of passive income to speed up the growth of your savings?
Because anything can happen at any time, think of insurance as a buffer from financial problems. Moreover, insurance is also a source of income, it provides coverage from critical illnesses and disability, and is a great way to build your wealth.
Manulife Philippines offers , an affordable life insurance plan that offers life insurance coverage while letting your money grow over time. It is designed to meet your life insurance needs at any stage of life and optimize the return potential on your investments.
If you have questions about Manulife Affluence Builder or need advice on how to secure your family’s future,