Working hard is important, but making smart financial choices can help you achieve your goals faster.
That’s why it’s important to find a career that not only rewards your effort but also helps you reach your financial goals.
It can be tempting to fall for get-rich-quick schemes, especially when your hard work doesn’t seem to be paying off. But if something sounds too good to be true, it probably is. Instead, learn how to make the most of your money with advice from AIA Philippines Life Planner, Edna Liz Medalla-Damaso.
Edna worked in the banking industry for over 16 years before leaving her high-paying corporate job. In 2016, she joined AIA Philippines to start her own business and help people through financial planning. Now in her fourth year at AIA Philippines, Edna has gained valuable experience and shares strategies with her clients to make their money work harder and help them reach their financial goals.
Set S.M.A.R.T. Goals
Your financial goals should be specific, measurable, attainable, realistic, and time-bound. “Set goals for different stages of life—your 20s, 30s, 40s, 50s, 60s, and retirement. Our needs change over time, so it’s important to review them regularly to stay on track,” says Edna.
Edna herself followed this approach. After 16 years in banking, she reassessed her priorities and decided to focus on work-life balance. She joined AIA Philippines with this goal in mind and now enjoys more control over her time while achieving her financial goals.
Save Before You Spend
“Save at least 20% of your income,” advises Edna. This aligns with the 50/30/20 budget rule, where 50% of your income goes to needs, 30% to wants, and 20% to savings. Rather than letting your savings sit unused, consider putting money into insurance to protect your family’s future.
Prioritize Needs Over Wants
Avoid impulse purchases and unnecessary spending. Financial discipline is essential for achieving your goals. Many people overlook the importance of financial protection, but having a policy that covers critical illnesses can prevent medical expenses from wiping out your savings—even if you have health insurance.
Track Your Expenses
Spend within your means. Keeping an eye on your expenses helps you cut unnecessary costs. Overspending, especially with credit cards, can lead to financial trouble due to high-interest rates if you don’t pay your bills on time.
Start Investing Early
“The best time to invest was yesterday,” says Edna. Once your basic needs are covered, start investing as soon as you can. Even small amounts can grow significantly over time with the right approach.
“AIA Philippines is committed to developing its Life Planners through training and business-building support. This helps us gain expert knowledge and skills to better serve our clients and grow our business,” she adds.
Invest Wisely
Research before you invest. Choose established and reputable companies to manage your funds. It may be tempting to go for investments that promise high returns, but always check the company’s track record and the reliability of the people managing your money.
Diversify Your Investments
Don’t put all your money in one place. Spreading your investments across different options reduces risk and protects your savings from major losses.
Build Wealth Gradually
Avoid schemes that promise quick riches. Growing your wealth takes time. A useful concept is the financial pyramid, which starts with life and critical illness insurance as a foundation. Once that’s in place, you can focus on saving, then move on to investing and wealth-building. The process takes patience, but the rewards are worth it.
Consult a Licensed Life Planner
“Our job is to give expert financial advice. Make smart decisions today so your future self can enjoy financial security,” says Edna. She emphasizes that AIA Philippines has given her a meaningful and rewarding career as a Life Planner.
By following these practical steps, you can take control of your finances and work towards a secure and comfortable future.
