Did you know that the average government-subsidized pension fund of PHP 1,120 to PHP 18,000 is barely enough to cover the monthly expenses of a regular Filipino household? 1 With average monthly expenses ranging from PHP 35,000 to PHP 85,000 on a tight budget, how can Filipinos cope with the rising cost of living? 2
Part of BPI AIA’s efforts to Rethink Healthy is to care for your financial health. Being financially aware is more than just saving money. It's about being fully equipped for the future and staying resilient in the face of life's unexpected turns.
Here are a few simple ways to boost your financial awareness:
Approximate your future costs. Financial planning isn’t about imagining a perfect life; it focuses on being real with what you’ll need. Ask yourself the following:
- Where will you live?
- Will you still be paying rent, housing loans, or utilities?
- How much should you set aside for healthcare, food, transportation, and personal care?
- Do you need to support someone financially, and how will they cope if you’re gone?
Once you have a rough estimate of these expenses, you can determine how much income you need to earn each month to cover them.
Branch out your income sources. As living demands rise steadily, it’s crucial to have more than one stream of income to ensure financial security. Aside from savings and long-term deposits, having any of these can provide you better financial safety net:
- Insurance plans with payout benefits
- Retirement-focused investments
- Rental income or small business dividends
Get ready for tomorrow’s expenses. Health-related expenses are some of the biggest reasons people drain their funds early. Financial protection matters. Having life or health insurance that covers critical illness, long-term care, or living expenses can prevent you from sacrificing your savings when health emergencies strike.
Plan with your family, not just for them. Real planning can translate into setting healthy boundaries or initiating honest conversations about the future. Ask your partner, siblings, or adult kids, “How can I help give you that even when I’m no longer around?”. Asking the hard questions is important so that you can help lay down a plan that’s right for you and your family’s future.
Aside from saving money, financial awareness is about anticipating life’s changes with clarity and real-world perspectives. The more you prepare for tomorrow’s challenges, the more confident you are that you can shape a better future for you and those you love most.
