Millennials' financial goals: Can you relate?

With everything going on in the world right now, many of us just want to enjoy and live life. Spend time with friends and family, travel the world, heal our inner child. And that’s totally understandable – what’s the point of earning money if you’re not going to spend it, right?

While it’s important to not let life pass us by, it’s equally important to plan and save for the future. Because if you don’t do that now, you might not have enough to enjoy your life down the line. 

The key to this is to set financial goals for yourself. These goals are entirely up to you, and the pace at which you achieve them shouldn’t put too much pressure on yourself. Remember, your financial goals should give you a feeling of security and freedom.

To guide you on your goal-setting, we’ve compiled the top five financial goals for millennials and Gen Zs worth aiming for:

1. Build an emergency fund: Having a safety net or protection plan for unexpected expenses like medical emergencies, car repairs, or job loss should be a top priority. To get started, calculate your living expenses for one month, and then multiply that by three to six months – that should be a good cushion to land on in case anything happens. 

2. Debt freedom: Debt, particularly high-interest debt, can be a major roadblock to financial progress. If you need to borrow money, make sure you understand the terms completely and that you’re not being taken advantage of. If you have any existing debt, prioritize paying the ones with higher interest, and consider consolidating loans to lower interest rates.

3. Home ownership: Owning a home these days can seem like a pipe dream. But it’s still achievable – regular saving and exploring flexible home loan options can help make this dream a reality.

4. Investing for the future: It’s easy to put off investing in long-term goals like retirement. But the earlier you start, the better – that’s because you can leverage the power of compounding interest. Even if you start with a small amount each month, you’ll be surprised at how far your money can go. Pro tip: explore Mutual Funds or Unit Investment Trust Funds (UITFs) for convenience.

5. Financial independence: Being able to live comfortably without relying on others is a feeling like no other. Just like building your emergency fund, take stock of your current day-to-day life and picture your dream lifestyle. Then, calculate how much that will cost. To achieve that, explore generating passive income streams, building dividend-paying assets, or pursuing career advancement for higher income potential.

Achieving these goals can seem intimidating, but there are a few simple habits you can build to help you get there. Here are some pointers:

1. Budgeting is key: Track your income and expenses to understand your spending habits. You can use an app, a spreadsheet, or even just a notepad. Then, allocate funds toward savings and investments and avoid living beyond your means. This will require discipline, but budgeting is a key first step to financial freedom.

2. Embrace automation: Budgeting each month can be stressful, but automation can help make this a lot easier. Set up automatic transfers for savings and investments, and automatic payments for important bills – this will help you stay consistent and ensure you don’t miss anything. 

3.  Seek financial knowledge: Getting to know what financial tools are at your disposal is key to making them work for you. Educate yourself on investment options, personal finance basics, and responsible money management. If you don’t know where to start, visit a BPI branch near you.

Remember, reaching your financial goals doesn’t always mean giving up the life you enjoy. It just requires consistency, discipline, and a long-term perspective. Achieving these goals is a marathon, not a sprint – with the right tools and knowledge, you’ll reach the finish line without breaking a sweat.

Watch this space as we share more tips for achieving financial fitness. Visit The Program for more content like this.