Millennials’ #homegoals
I want my own condo To rent or to buy my own space ILLUSTRATION BY STEPH BRAVO
It’s never too early to get a head start on your future. Or, at the very least, if you want to tick off items from your bucket list this early, you will most definitely have to start building up your funds as well.
And that bucket list could range from something more immediate as travel and a new hobby, to one that may require a more time and thorough scrutiny, such as purchasing a new car, or a condominium unit.
Many of today’s young professionals and millennials who just jumped in either the corporate or entrepreneurial world would find themselves spending more of their money for travel, dining out and gadgets. A few years down the road would find the same group aiming for loftier goals: this time, a car and a condo unit to signal their entry into maturity and adulthood.
So it’s not surprising to hear that millennials now comprise the bulk of today’s condo buyers.
If you’re part of this group of professionals hoping and aiming to invest in a piece of property while still at their prime, then better gear up and prepare for the road ahead. At this juncture, you will need to have that financial discipline and commitment to not just save, but also spend prudently.
Here are some ways you can build your financial portfolio as you work on your goals.
List your expenses
It’s best to draw up a list of your monthly expenses so you’ll know exactly how much you will have left after all the deductions. This will allow you to identify how much you can afford to spend and how often. You’ll know too, if there are areas you can cut back on.
Avoid impulsive buying
Remember, you do not have to buy every single time you see a sale sign—unless of course, you really have a need for it.
Make sure to avoid impulsive buying by asking yourself: “Do I really need this? Will I have a use for this? How long will I be able to use this?” If you’re uncertain of your answer, then most likely, it’s a no, and not worth your hard-earned money.
Open a savings account
If you now find yourself with extra cash on hand, it’s time to open a savings account.
Be a smart saver and set up a regular transfer from your current account (most likely your payroll account) to a separate savings account to make sure that you get to set aside, even a small amount, every month.
Local banking giant like Metrobank offers several deposit accounts such as a passbook or ATM savings account. For a more complete offering, you can check Metrobank’s website where you can find the requirements to open an account, maintaining balance and interest rates, among others.
If you have additional questions, you can readily talk to any of the Metrobank officers to help you choose the savings product that will give you the most benefit, such as a fixed term account which offer higher interest rates. You can also lock your money for a certain period to secure better rates.
You can start saving small in the first few years. Once the habit catches on, you can increase your savings in the third year and so on.
Building savings through UITF
Metrobank offers the Unit Investment Trust Funds (UITF), a pooled fund that provides access to high-grade investments which are not normally accessible to retail investors. This gives you the opportunity to maximize returns without necessarily taking on too much risk.
The UITFs do not offer guaranteed returns, but the actual performance of the different funds has been proven to be most rewarding over the long-term. These are perfect for you if you have money intended for long term investment and are willing to take risks in exchange for potentially higher return.
Depending on your income flow and resolve, achieving those lofty goals of owning a home may not be as hard as you think. Again, all you need is the financial discipline and the right banking partner like Metrobank to see you through.
