You are not alone!
I feel you. I am also a Millennial.
I see money not an end in itself but as means to enjoy life, travel the world, and pursue my dreams and passion.
This is the reason why most millennials have no savings and are drowning in debt.
We might be enjoying life now but we will suffer in the future when those debts pile up and we can’t afford to retire because we have bills to pay.
But it doesn’t need to be that way, we can live #YOLO at the same time save for the future.
Why Is It Important to Save?
We need to save because life is uncertain.
As they say, Life Happens.
We don’t know what will happen tomorrow.
Will we still have a job?
Will we still be healthy?
Will everything be okay?
You May Say That That’s the Point of #YOLO!
Live in the present! Don’t worry about tomorrow!
Why worry now?
If something bad happens tomorrow, at least I was able to enjoy!
The Problem Is Not #YOLO but Because You Will Live Long.
Yes, you were able to enjoy life and do #YOLO but as your debts pile up what if life happens and critical illness such as cancer strikes?
Or what if there was a family emergency?
Someone got sick or got into an accident?
What will happen?
You can no longer travel and enjoy life.
You need to work harder so you can PAY NOT ONLY your BILLS but also your DEBTS.
The few years of #YOLO is replaced by a LIFETIME of sacrifice.
The Answer Is Balance
Anything in excess is bad.
The example above is an excess of #YOLO.
But having lots of money but not being able to live life is also excess.
The answer is to work hard, save and invest harder, and enjoy life hardest.
And hopefully, in the future, our investments can provide us with enough passive income so we are no longer obligated to work just to pay the bills.
3 Tips on How to #YOLO and Save for the Future
Tip 1: Know Your Number
Financial Freedom can be achieved by anyone.
You don’t need to be a multi-millionaire in order to be financially free.
You just need to know your number.
For example, if you need at least P30,000/month in order to live a comfortable life then you just need at least P3.6 Million of nest egg.
Why?
P30,000/month x 12 months = P360,000/ year.
10% of P3.6 Million is P360,000.
Hence, if you can find a fund that earns 10% a year, your P3.6 Million can give you P360,000 a year return or P30,000 per month without working.
As you can see you don’t need to have hundreds of millions of pesos or be an owner of a big company in order to be Financially Free.
Your number depends on the lifestyle you want to live.
You can make it higher or lower.
Knowing your number is important because this is the number you need to strive for.
What’s your number?
To help you compute your number, you may want to read this article “What Does It Take to Be Financially Free?”.
Tip 2: Create A Budget
Creating a budget is easy.
One of the most common budgeting techniques is the 70-20-10 Rule:
70% goes to your living expenses
20% goes to your savings and investment fund
10% goes to your giving fund
Another technique is the money jar system which you can read here,“Budgeting the Easy Way (Money Jar System)!”
Tip 3: Create a Play Fund
A Play Fund or Travel Fund should be included in your budget.
This will keep everything in balance.
Allocate 10% of your income for your #YOLO goals.
If your current 10% is not enough, save for it or find ways to increase your income.
Click the links below to know more about Play Fund and Travel Fund:
“3 Steps on How to Build your PLAY FUND!”
“Never Travel Without a Travel Fund”
At the End of the Day, Life Is Meant to Be Enjoyed!
Saving for the future might not be as enjoyable as living #YOLO.
The only way to make saving for the future enjoyable is a change in perspective.
Have a long-term perspective and visualize living in Financial Freedom.
Your Millennial Wealth Planner,
Harold Q. Gardon, CWP, CEPP
How do you find the article? Do you have any questions? Please feel free to message me if you want me to discuss a particular topic or if you are seeking financial advice.
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