In today’s world, many millennials find themselves grappling with how to handle their personal finances. From budgeting and savings to investments and insurance, the financial landscape can be overwhelming. Unfortunately, this confusion often leads to falling victim to scams, leaving young professionals vulnerable. But the good news is, it’s never too late to start building a secure financial future — with the right guidance.
As Rodora Mendoza, a Registered Financial Planner, emphasizes, “A Financial Planner is your best partner when it comes to managing your finances. They can help you identify how much you need today to achieve your long-term financial goals.” However, before diving into investments, it’s crucial to understand the fundamentals of finance — a step many young people skip. Mendoza explains that skipping this foundational knowledge can have significant repercussions, especially when it comes to building investment portfolios that last.
Building a Strong Foundation
Think of your financial life like building a house. “A solid foundation is essential,” Mendoza notes. “You wouldn’t put the roof on before securing the foundation, and it’s the same with your finances.” The first step in securing your financial future is addressing the essentials: health and life insurance. These types of coverage provide peace of mind in case of unexpected events, such as sickness, accidents, or death, allowing you to continue working toward your goals without worry.
Next, build an emergency fund. “If you lose a job or face an unexpected financial setback, your emergency fund is there to keep you on track,” Mendoza advises. An emergency fund acts as a cushion that lets you keep pursuing your goals without panic.
Creating Passive Income
Once the foundation is secure, start building passive income streams. “Whether it’s investing in stocks, forex, or even starting a small business, create another income stream,” Mendoza says. The key here is to invest in what you know or to study thoroughly before jumping into new investment opportunities.
The Importance of Learning and Debt-Free Living
To truly succeed, you must also keep learning. “Look for opportunities and find a mentor who can guide you,” Mendoza suggests. Additionally, achieving financial freedom means being debt-free. As Mendoza reflects on her own experience, she notes, “I witnessed how my parents struggled because they didn’t have a financial plan. They were stuck in a cycle where income didn’t exceed expenses.”
By starting early, prioritizing savings, and keeping your financial goals in sight, you can avoid these traps and build a stable future. Remember, “Time is more valuable than money,” Mendoza says. “You can’t earn back lost time, so make every moment count.”
Start today, build your foundation, and secure your financial future.
