Financial Wellness

6 Types Of Savings We Recommend You Should Have

We all know that it’s important to save money for the future. Surprisingly, the easiest way to accomplish this is to actually split up your savings into different accounts instead of just maintaining a single one. 

“By opening multiple savings accounts, it becomes easier for you to identify financial goals and make sure you are on track to achieving them,” says Mariel Bitanga, financial advisor and founder of Simply Finance, a boutique financial planning firm committed to empowering Filipinos. 

While managing more than one account may seem time-consuming, Mariel assures that the benefits outweigh the extra work required. Splitting up your money into different categories makes you more aware of where your salary is going. “When you know what’s happening to your money, you make better purchasing decisions and can adjust your financial goals accordingly.” 

Mariel adds that people now have the benefit of living in the Digital Age. “Opening a bank account is much easier to do now than before,” she explains. “There are so many digital banks now where you can open an account online without even having to talk to anyone. Most banks even have a feature where you can open sub-accounts under one account, so you can manage your money conveniently.”

Small earnings should not be a deterrent either; you can still split up your savings. “Put in small amounts here and there just to get started,” Mariel advises. “When your money is small, it’s easier for you to keep track of them and manage them; the key is to build the habit so that when you have more money, you’re still able to budget wisely.” 

When your financial life becomes more organized, you will become less anxious about your personal finances, make better money decisions, and enjoy better health.

“When you know what’s happening to your money, you make better purchasing decisions and can adjust your financial goals accordingly.” 

Mariel Bitanga, Financial Advisor and Founder of Simply Finance

Types of savings

There is no hard rule about how many accounts a person should have. “It depends on your personal situation, so always reflect on what’s suitable for your lifestyle and what you want to achieve,” Mariel points out. That being said, here are the six types of savings that she recommends:

  1. Emergency fund

As the name suggests, you only touch this money when a true emergency arises, such as job losses or other disasters that you need a lot of money to cover like major home repairs, car repairs, or even pet-related emergencies.

If you have dipped into your emergency fund because of the COVID-19 pandemic and do not have the income to replenish it yet, it may be time to think of ways to cover the loss. “Consider other ways you can make more money, such as taking on a second job or starting a side business, so that you do not deplete your emergency fund,” Mariel advises. 

  1. Retirement fund

This ensures that you will still have enough money to pay for your bills and expenses when you are no longer working. Start putting money into this fund even when you are still young; the earlier you start, the more opportunities you will have to grow those savings through investments. Consult a financial advisor on what opportunities are available for you.

  1.  Personal savings for day to day and regular expenses
    Since you can’t touch your emergency or retirement funds, this is where you should get your cash for your food, utility bills, and other essentials. 

As with the other types of savings on this list, the amount you should have in your personal savings depends on your lifestyle and needs. You can calculate this by adding up your monthly contribution to your retirement and emergency fund, and then subtracting these from your income. From what remains, make a commitment to set aside a reasonable amount that still allows you to have enough to meet your daily expenses. 

  1. Expenses for short-term goals

This is for expenses that require you to save up a little more than usual before you can spend them, such as a wedding, a downpayment for a car or gadget, or a vacation. 

  1. Hospital and medical expenses

This is money intended to cover a medical emergency, specifically something that might not be covered by health insurance. Even if you are young and at the peak of health, it would be wise to start setting aside money for this fund now. “We need to approach things responsibly especially now that we are in a pandemic,” Mariel says. “As human beings, it is inevitable that we or our loved ones will encounter medical emergencies or expenses at some point in our lives, so the smart thing to do is to have money set aside to cover those because they are really one of the first things that can deplete our investments and savings.”

  1. Optional: A fund for hobbies and other “wants.”
    “Wants” are defined as things that you buy for fun or leisure; you could live without them, but you enjoy your life more when you have them. These include expenses such as collectibles, games, or beauty treatments. If you see that you regularly spend a considerable amount on these items, consider setting aside money to exclusively fund these so you still spend with care.

How to get started

This is definitely not an exhaustive list of all the types of savings accounts that you could set up, but it is a great starting point. When you are ready, Mariel suggests that you start by making a list of all the categories mentioned above, as well as other categories that you think you need to budget for. After that, check all your current bank accounts and tally them up so see how much money you have to start with. Finally, start allocating to the various funds. Financial advisors can also help in this regard. 

For those still feeling unsure and overwhelmed, MindNation WellBeing Coaches are also available 24/7 to help you build better money habits.  Book a session now through or email [email protected].

Financial Wellness

5 Tips For Financial Wellness During the Holidays

The Christmas season is the most wonderful time of the year, but in light of the COVID-19 pandemic, it can be stressful for team members who are grappling with reduced income and yet feel that they have to spend to celebrate properly. So instead of feeling love, peace, and joy this Christmas, they end up feeling stressed, anxious, and guilty. 

“Financial worries can lead to poor mental health and productivity.” says Mariel Bitanga, a financial planner and founder of Simply Finance, a boutique financial planning firm committed to empowering women. “And it can get worse during this time of the year when people end up overspending and enter January with less savings or in debt.” 

To ease the anxiety and achieve financial wellness, your team needs to be more mindful and responsible about how they manage their money during the holiday season. Here are some suggestions you can share with them: 

  1. Start early. Ideally, planning for the holidays should begin in the months leading to December, not during December itself. This way, you have a head start in setting aside cash and avoid the panic that comes with scrounging for funds when D-Day comes along. MindNation WellBeing Coaches are available for teletherapy sessions 24/7 to help your team set goals and build better habits. Visit to know more about the MindNation CareNow Plan©.
  1. Make a list, check it twice, and stick to it. Just as your parents taught you to never go grocery shopping on an empty stomach because you’ll end up buying more food than you originally planned, neither should you do your holiday shopping without a ready list of recipients and corresponding budget.
  1. Great gifts don’t need to be expensive. “Scour online for cheap but useful finds,” Mariel advises. “If you are crafty, make something out of your own hands. Lastly, promote sustainability by normalizing giving secondhand gifts, like a dress that doesn’t fit you anymore but you know will look good on your friend.”

    Gifts can also be non-material. “During these tough times, a simple gesture or word of encouragement will mean the world to someone who is struggling,” assures Mariel.
  1. “Don’t go into debt just to impress people or make them happy,” Mariel says. This means you shouldn’t feel obliged to give gifts if you really cannot afford it. “If the gift giver is sincere and a real friend, they will not expect anything in return; just don’t forget to say ‘thank you,’” she adds.
  1. When all the spending is done, reflect on what you could have done better and set your goals for NEXT YEAR. “Financial responsibility entails a lot of self-reflection,” Mariel reminds. “When you have the time, sit down and audit your finances. Think about what you can improve on, and what your financial goals are for the following year so that you can start preparing.” A financial planner can help you outline your goals in an objective manner, help you make sense of the computations, and create recommendations and action steps to fulfill those goals. “We’re here to give advice and present a clearer picture about your financial status,” Mariel explains.

And in case you do overspend or miss out on your financial goals this Christmas season, forgive yourself. “We are going through tough times right now, so don’t be too hard on yourself,” Mariel assures. “There are always ways to change the financial plan and save more, you just have to be creative and trust the process.”