Personal Finance Checkup: Top 10 smart financial decisions to make today

There is no better time to make the best financial decisions than now.

Every day is a chance to make better choices and one of the areas of our lives that would greatly benefit from a determination to improve and make smarter decisions on would be on finances. The less financial stress to deal with, the better life becomes. The more one gets to take care of financial wellness means greater chances of financial freedom.

According to the 2023 Financial Readiness Survey of major life insurance firm Sun Life Grepa Financial, Inc. (Sun Life Grepa), Filipinos have a clear sense of financial priorities but lack financial preparedness when it comes to securing protection instruments to achieve goals and address needs. Only less than 10% of the respondents claim full financial preparedness. Those who are fully or somewhat prepared when it comes to having emergency funds are at 34%, 32% are prepared for major goals, 32% readiness for personal health and 30% for investments.

“One of the important things that the survey showed is that Filipinos are aware about their personal financial priorities but there are struggles and challenges when it comes to taking concrete steps about finances,” said Richard S. Lim, President of Sun Life Grepa. “There is still a need to educate and showcase financial options for the consumers and we at Sun Life Grepa are committed to help reach out to our countrymen and share information about ways and means of securing their future.”

A Standard & Poor’s (S&P Global Rating) study showed that the Philippines only achieved a 25% score on financial literacy, placing the country in the bottom 30 out of 144 countries surveyed. Thankfully, based from the results of the 2021 Financial Inclusion Survey of the Bangko Sentral ng Pilipinas, Filipinos seem to be starting to change their financial behavior with more adults saving up for emergencies and a growing number of Filipinos having financial account ownership and investments as well.

Every day is a good opportunity to contribute to the statistics of growth and improvement in Philippine financial literacy and financial preparedness. Beyond the national impact of one’s financial smart decisions is a life lived without financial worries so one can truly enjoy life.

To establish an excellent roadmap to get financially healthier now and in the future, here are top 10 smart and practical personal financial moves one can make:

Review, evaluate and keep track of your spending and financial health. Just like that irresistible need to do a massive effort of cleaning up or doing a yearend recap, one should apply this similar practice when it comes to keeping track of financial decisions one makes. Awareness of one’s spending behavior and financial habits would be a great start in this journey to financial wellness. Make it a healthy habit to take note of where your expenses go and evaluate spending decisions so you can wisely reallocate budget to make better financial choices.

Know and revisit your life goals and financial aspirations. Taking action on financial goals requires motivation and inspiration. Is it securing the future? Is it getting insurance for loved ones? Is it saving up for quality education? Is it buying a new home? Getting a car? Starting a business? Listing down or having a vision board of your life goals and aspirations will help identify what financial solution or action you can do in order to help achieve said goals. It will even make saving up, getting insurance and investing more fun and purpose-driven.

Seek professional help. After determining your goals and aspirations, plan your route to financial wellness and wealth. It’s always good to partner with a financial advisor since they are professionally licensed and trained to help you discover your needs; make informed financial decisions, identify opportunities and manage your finances wisely. Talk to a financial advisor today and start your journey towards achieving financial freedom and a brighter future.

Pay off your debts. Make it a priority to pay off debts and settle obligations when receiving a large sum of money. It’s much easier to achieve financial goals without the burden of loans and debts. That said, there are good loans and bad loans. When talking to a financial advisor, ask about good loans which can actually help you in reaching your financial targets (e.g. loans you can take and utilize for investments).

Build an emergency fund. Crisis preparedness should always be in your financial planning and setting up an emergency fund is a wise thing to do. An emergency fund provides cushion for unplanned expenses such as losing a job or loss of income and health emergencies. You can also beef up your emergency fund by exploring solutions that allows you to choose fund options suitable to your risk profile and gives you flexibility for partial withdrawals from your funds when you need it for emergency situations.

Prepare for and secure the future. Making financial decisions isn’t just for your personal benefit but also for your loved ones. A bright and secure future is one of the best gifts you can give yourself and your family. In life, there will always be uncertainties but preparation is key to at least be in control of financial matters. There is a wide array of life insurance products that can form part of your financial planning this year and beyond. Check out products with increasing life insurance coverage to consider yearly inflation and give increasing guaranteed cash benefits after the paying period up to a specified number of years. This can be used for purposes such as education and even travel goals. 

Get insured and grow your money. Today is always a good start to get insured and maximize the earning potential of your hard-earned money at the same time. As they say, make money work for you. Depending on your risk appetite and financial goals, Sun Life Grepa has fund options that can match them.

Protect your health. The best investment you can make is investing in your health and well-being. Protecting your health is protecting your wealth. Exercise, eat healthy and get a regular checkup with health professionals. Make healthier decisions both physically and financially this year with a Sun Life Grepa Health Plan.

Set up your road to retirement. Later in life, it’s only right to enjoy the fruits of your labor and have one less thing to worry about by preparing for your retirement. Golden years deserve golden experiences. One of Sun Life Grepa’s mission is for Filipinos to secure the future by getting them covered so they can address retirement needs.

Diversify. Don’t put all your eggs in one basket and be on the lookout for opportunities. You can get a variety of insurance products as well as ones that come with investment opportunities. A financially secure future requires one to be wise in diversifying financial instruments and in making sure that risk is lowered with this strategy. Sun Life Grepa offers peso and dollar-denominated global funds that give their clients opportunity to participate in investments outside the country. As these fund options are tied to a life insurance policy, one enjoys the security of life insurance coverage and the potential growth of money through offshore investments.

Sun Life Grepa is committed to be one’s partner beyond a lifetime, with a focus on helping to future-proof the lives of many Filipinos through financial solutions that fit one’s varying priorities and concerns. For more information, visit www.sunlifegrepa.com, call 88499633 or email wecare@sunlifegrepa.com.