For anybody thinking seriously about building up their savings, it is essential to begin with a plan. Having a financial plan will not only help you better manage your money to set aside funds for savings, it will also give you guidance for what will be a long-term action plan.
Financial planning need not be too intimidating. By following these three simple steps, you can start off on your financial planning journey.
Start out by writing a list of your current monthly expenses in terms of housing costs, transport costs, food, entertainment, clothing, education and all your essential spending. Then deduct this from your income – this tells you how much you are able to save.
Once you have this, write down your life goals – what do you want to achieve? Are you saving for a car? Your wedding? Your children’s education? Or maybe you want to save for your retirement? Set a financial target for each one of just how much you will need to save to reach each goal.
Before you can think about how to save for the future, you need to first organise your income. Start by dividing your income into what you want to spend and what you want to save. A useful rule of thumb is the 50-30-20 formula, which breaks your down into three categories:
Remember, you can increase the amount you save by thinking about reducing spending on the things that you want. Another great tip save your pay rises rather than spending more on a more expense house, car, holidays, clothes. By keeping your living standards modest, you can save more for your future and not fall into the trap of increasing expenses.
Once you have set your financial goals and organized your, you need to make sure you are planning your savings. It helps to prioritise your savings according to needs. Depending on the amount you have to save, these can be done one at a time or all at once.
One more thing…protect your finances
Insurance is an essential part of your financial planning. Protect yourself and your family against the financial damage that can be brought about by unforeseen events and circumstances. As a minimum, you should consider life and health insurance options. Speak with a Chubb Life Vietnam who can create the right insurance solution y for your needs.
With all these elements in place, you are set to begin your savings journey, safe in the knowledge that you have a plan in place to guide you. A financial plan needn’t take too long to create, but its value will stay with you for many years.
Life protection for Invidiuals & Families: https://www.chubb.com/vn-en/personal/life-protection.html
or contact Chubb Life Vietnam to find out information about insurance packages specifically for you at:
Hotline: *8123 or (84 28) 3827 8123
Fanpage: Chubb Life Viet Nam