A report by the Philippine Statistics Authority (PSA) revealed that the employment rate in the Philippines stands at around 94.6 percent as of July 2019
. Of the total employed individuals, at least 67.4 percent were working full-time or 40 (or more) hours in a given week. This means that many Filipinos are working for a paycheck to make ends meet, pay off loans, and achieve other financial goals.
While there’s nothing inherently wrong with having full-time work, salaried jobs can sometimes become stressful as the years (or decades) fly. There may come a period in your life where certain aspects of working, such as clients, office colleagues, bosses, and the daily commute, begin to pale.
The good news is that you don’t have to rely on your job to pay for your needs and wants. Instead, you can take steps toward financial independence. When you’ve achieved this goal, you can live your life without financial constraints.
Here’s why you should make financial freedom your primary life goal — even if you love your job:
Freedom to Work and Live the Way You Want
When you’re financially independent, you have a steady source of passive income flowing into your bank account. You have the option to stay employed, run a business, or become a digital nomad. If you choose to work for a boss, you’ll do it because you like to and not out of survival.
Option to Retire Early
Don’t want to spend your days working in an office or running a business? That’s perfectly fine when you’re financially independent. You can retire before you hit the default retirement age of 60.
Extra Spending Peso
While money can’t buy you happiness, it can make things a lot more fun in your life. You can spend it on nice luxuries without worrying about the amount of money you have left in your savings. This means that you can buy your dream home, travel to your dream destination, or drive your dream vehicle without going ultimately broke.
Opportunity to Help Others
Becoming financially independent doesn’t just benefit you. You can use it to help other people, as well. When you have more than enough in your bank account, you can offer an open hand to people who need financial assistance. An example is treating loved ones to a fantastic meal or buying them their needs without thinking about how these actions will affect your everyday fund.
Pass on a Good Legacy to the Next Generation
Rather than leave your spouse and children with debts and other financial liabilities, you can leverage your financial independence to leave behind generational wealth, which your loved ones can use to fulfill their life dreams — and eventually become financially free. Apart from the funds you’ll pass on, you’ll be teaching your family how to be more responsible with their money.
How You Can Be Financially Independent
Reaching this goal isn’t a walk in the park, but it’s not entirely impossible either. Achieving financial freedom takes a solid plan, which you should stick to no matter what. Here are a few ideas to get you started in achieving this wonderful goal:
Live within Your Means
When you’re living within your means, you’re spending equal to or less than your monthly take-home pay. Some of the things you can do to accomplish this goal are:
- * Use Credit Cards Wisely – This financial tool, when used properly, offer a range of benefits, including reduced need to carry cash and rewards points you can exchange for discounts and frequently flyer miles. Misusing the card, such as spending on things you can’t afford, can leave you drowning in debt. Using these cards wisely, therefore, is important to stay in a good financial standing.
- * Build an Emergency Fund – A rainy day fund prevents you from borrowing money to pay for unexpected expenses. When it comes to creating an emergency fund, the rule of thumb is to save at least three to six months’ worth of your living expenses.
- * Stop Keeping up with the Joneses – If you see your friendly neighbors flaunting the newest car or the latest gadgets, resist the urge to use credit or spend your hard-earned money to buy these stuff.
- Invest Your Hard-Earned Money Wisely
- If you want to become financially free, you need to put your savings in an instrument that offers a reasonable amount of return. Investing your money in bonds, stocks, and other assets with an acceptable level of risk is a good place to start.
- Protect Yourself with Insurance
- When building money for your financial freedom, you need to protect it with the appropriate insurance coverage. Doing so safeguards your future and allows you to be ready for whatever life throws at you.
- InLife, the most trusted mutual insurance company in the Philippines, offers insurance products that protect against the uncertainties of life while providing investment earnings over time. We offer MAPERAAN programs designed to help Filipinos make informed financial decisions and achieve financial security and independence.
- Get in touch with us today to learn more about our range of MAPERAAN solutions.