The Fortunate Minority

According to survey, only 2% of the senior citizen population are financially free. The other 98% depend on charitable institutions, relatives and social security. Few have accumulated or maintained at least enough wealth in order to support themselves without having the need to work.

Is there something wrong with this? It's a big YES. What does this survey tell us? This implies that most Filipinos are not financially conscious or aware. Not all of us were born rich but that is not a valid reason for us not to be able to reach for our dreams. Education is one of our basic needs however that doesn't guarantee that we'll become wealthy when we earn a degree. As far as I know in most schools, financial literacy is not taught. In classes, we are being honed to become money-making machines. Also generally, parents at home do not train their children on money management.

In effect, children grow too pampered, employees are not able plan for their future, old employees cannot retire, and the aged ones become dependent to their children who may already have their own families. Senior citizens in a way become burdens to their children or siblings especially when they start becoming weak. Disease brought about by old age is one thing no one can escape. It could cost you more than what you expect.

To avoid this problem, it is important to build your financial foundation as young as you can. You should allocate your income very well and increase your cash flow if necessary. First, secure short term and long term healthcare plan. This would serve as the strong base. Health is our basic asset, if we get sick we can't work. So we lose money. Then protect yourself so that in case something happens to you, your family will still be able to live well. Your life insurance will replace your income. Also, eliminate or consolidate your debts and create emergency fund. These will strengthen your financial stability. Lastly, look for investments that suit your appetite. You will need these for your retirement and other future plans like travel.