How to save smarter: a guide to achieve your financial goals

Monthly bills, rising inflation, and never-ending expenses can make saving money overwhelming. But what if we tell you that saving money doesn’t have to be difficult?

Whether you are saving to start a new business, buy a new home, fund your child’s education, or plan your own retirement, saving is the most essential key to reaching your financial goals. With the right saving strategies, you can turn these aspirations into reality!

According to the 2021 Financial Inclusion Survey (FIS), 37% of Filipinos have some form of savings, which they typically keep in the bank or at home for emergencies. Despite the increasing number of Filipinos opening savings accounts, doubling in just two years, fewer individuals actually have savings and insurance.

This statistic is quite surprising, especially considering that according to the latest Manulife Asia Care Survey 2023, 80% of Filipinos believe in retirement planning, with 55% ranking it as their top personal finance goal. Regrettably, only a third (30%) have a plan in place.

What does it mean to save smarter?

Adopting a strategic approach to save money smartly and align it with your financial goals is smart saving. It is about being thoughtful with how you manage your income and make sure your savings are meaningful and built for growth.

Smart saving is more than just putting money aside. It requires the right intention, structure, and discipline. Intention is the first step, where you define clear financial goals and understand the purpose behind your savings. Whether it's building an emergency fund or saving for a long-term goal like retirement, having a specific target in mind guides your actions.

Structure comes into play by managing your finances. This involves creating a budget, automating savings, and dividing your income into different saving categories.

Finally, discipline is necessary for consistency. Sticking to your plans will help you stay on track and avoid impulsive spending. 

Tips to save smarter

Smart saving is more than just cutting costs. You need to make several smarter choices to ensure your saving is going in the right direction. Here are some practical tips for you:
 

• Set your goals: Firstly, define your saving goals, such as vacation and emergency savings, to stay focused.
  
  
• Prioritize high-interest debts: Pay off high-interest debts first to reduce your financial burden and free up more money.
  
  
• Automate savings: Set up auto debits to the savings account or investment funds to stay consistent.
  
  
• Use employer benefits: Take advantage of your employer-sponsored retirement plans or other benefits offered.
  
  
• Track your expenses: Use budgeting apps to track where your money goes and identify areas to cut back.

Common mistakes that prevent people from saving smarter

Many people fail to save smartly because of some common mistakes. Let’s take a look at these, which can derail your financial plans.
 

• Saving without clear goals: With no clears goals defined, you are more likely to lose focus and become inconsistent with saving efforts.
  
  
• Inconsistent contributions: Consistency is the key when it comes to saving. If you save one month and then skip the next one, it gets harder to build momentum.
  
  
• Ignoring protection needs: Many people often forget to consider protection, like health or life insurance, while saving money. With adequate protection, any unexpected expense can drain your savings over time.
  
  
• Focusing on short-term needs: Solely focusing on short-term expenses can leave long-term goals overlooked. You are more prone to be financially insecure in the long run if you do not save now for future needs like big life events or retirement.

Conclusion

Whether they are your short-term or long-term financial goals, smart saving is your most effective tool. You can build a strong financial foundation for your future by avoiding these common mistakes, setting clear goals, and being consistent. Don’t wait to take your first step towards smart saving today!

If you prefer guaranteed returns, Manulife Freedom is the right one for you. Get guaranteed payouts every two years and one lump sum cash at the end of your plan, all while staying protected.

There's no better, or more pressing, time than now to start saving. If saving is a top priority for you, Manulife makes it easier and more convenient for you to maintain a healthy savings habit. 

Key takeaways

• Set clear financial goals: Identify personal financial goals to guide your saving and investment strategies.
• Create a budget: Track income and expenses to ensure you're saving a fixed amount each month.
• Prioritize long-term savings: Focus on long-term savings goals, such as retirement, to ensure future financial security.
• Start early: The sooner you start saving, the more time your money has to grow through compound interest.
• Automate savings: Set up automatic transfers to make saving easier and more consistent.

Want to learn more about how to plan for a better, longer life? 

Talk to a financial advisor today!