Happy New Year from the Adulting Pinoy team!
Got any new year’s resolutions regarding your finances?
In recent months, the pandemic has shown signs of slowing down – but it doesn’t seem like we’ll be completely rid of it any time soon. Nevertheless, many Filipinos are learning to adapt.
Most of us have changed our habits: we no longer go out as often, we work from home a lot more, and we all probably wash our hands every few minutes (we know we do). Hopefully, we’ve adopted healthy financial habits during the pandemic as well.
But with everything that’s changed, how should we handle our finances or set financial goals for the future?
In this article, we will give you five tips on setting your financial goals this 2022 – Adulting Pinoy style!
Financial Goals to Prioritize During the Pandemic
Don’t hesitate to use your emergency fund
If there ever were a time to use our emergency funds, it would be the past years. We’ve all faced various trials and difficulties; it’s honestly amazing how we’ve all come this far.
These extraordinary times are exactly what your emergency fund is for, so don’t hesitate or guilt yourself when relying on it. Times are tough: bills are higher because we stay at home more, we need to be healthy more than ever before, and the overall prices of goods have increased.
Not using your emergency fund when you need to can result in bigger problems and more expenses later on.
However, this doesn’t mean that you should stop saving for it. If you’re in a position to do so, by all means, set money aside. Just know when you should
Don’t plan too far ahead.
It’s challenging to plan for the far future when everything is still up in the air. We don’t even know what tomorrow will bring; we hope it will be lesser Covid-19 cases, but it can just as quickly be new strains of the virus.
Planning too far ahead into an unforeseeable future can end up being a waste of time and energy as things evolve day by day.
We are now into a time where the future is indefinite, so it is essential to plan things as close to the present as possible. Thus, focus your planning on short to mid-term goals, and emphasize being adaptable and flexible so that you won’t be paralyzed when things change for the worse.
Pro tip: One of the best ways to do this is to plan your budget. Look at your spending habits carefully, and put every financial decision under a microscope. Filter out the necessary expenses from the unnecessary ones, the wants from the needs.
Minimize spending on your wants
In these uncertain times, we must be aware of our spending habits.
If you’re one of the privileged individuals who are not struggling as much as others and can spend money on extra stuff, be mindful that you don’t spend too much of it on your ‘luho,’ and still be able to put money on your emergency savings.
If you want (or need) new things, do your best to get them with as little cost as possible.
Upcycling and recycling have been a trend for years, so maybe you could save some money by with that. Not only will you have a more personalized item, but you can also unlock a new skill or perhaps even develop a new hobby out of it.
You can also surf the web for second-hand stuff, and always make sure to get the best deals out of your Shopee purchases.
Pro tip: This doesn’t mean that you should stop spending on things that make you happy! The key is finding the right balance and sticking to it.
Think of creating other income streams
Speaking of creativity, how about using that to your advantage?
Maybe your family and friends have always praised you for something. Perhaps you’ve come to realize that some of the things you have aren’t a necessity anymore and can be sold. Maybe you’ve always wanted to learn how to edit videos, write a blog, or invest in cryptocurrencies.
Plus, you have more time to learn now too. With work and school becoming primarily home-based, you now have more time on your hands. Revisit past interests, learn how to monetize existing ones, and learn how to put yourself out there.
Finding ways to generate even the slightest bit of income can help big time, especially with the economic effects that the pandemic is having on all of our livelihoods.
Don’t be afraid to plan differently than normal.
In times of change, we need to adapt to whatever life gives us.
Adjusting and prioritizing your expenses while simultaneously meeting your financial necessities is crucial today.
Knowing when and how to be creative with your finances should be your top concern.
Whether you should be prioritizing additional expenses for the sake of your mental health or creating ways to increase your emergency funds, what matters the most is how you manage your financial decisions.
Setting Your Financial Goals During for the Pandemic
These are uncertain times, indeed, and it’s up to us to remain focused despite the many challenges that survive us.
Setting financial goals is one of the ways that we can reliably prepare for the future, so make sure that you’re oriented in the right direction for this year.
What financial goals do you have for 2022? Let us know in the comments below!