When allocating for your needs, make sure to account only for the things you need to maintain your everyday life. These include your rent or mortgage, your utilities, and groceries.
What people don’t think about right away would be insurance and health care, but these should be part of the basic things you spend your money on because these provide a safety net in case the worst occurs.
Families with life and health insurance, for example, wouldn’t need to cut down on their future plans and goals when expensive emergencies happen: insurance protects their investments and savings, as they wouldn’t need to dip into them when the breadwinner gets sick.
Take AIA Philam Life’s AIA All-In-One Policy for example. It covers all the bases by providing essential protection against four major risks: untimely death, accidents, disability and critical illness.
For starters, the life insurance coverage through this plan amounts to P1 million pesos, 100% of which will go to the beneficiaries in case of an untimely death. All for less than the cost of a daily Starbucks coffee: a healthy, 32-year-old non-smoker will be able to avail this plan at less than 100 pesos per day. If you set aside this amount for 20 years, you will get P5 million worth of claimable benefit against the four major life risks.*
Shop around for a plan that offers the right balance of cost and coverage; if you can’t get it right the first time, adjust your budget and your goals accordingly.