Financial Succes, Who don’t want to have a good financial? I think most of us especially those who read this want to succes in their finance. It ain’t easy to achieve that but we need to understand on how to cover personal finance.
I just read an article from Singapore investment author, Sean Seah that reveals the key milestones of financial succes :-
Milestone 1 : Insurance
Insurance is important as it is to ensure that you are adequately covered through insurance. As individual financial conditions and needs are different, the best way is to get a trusted insurance advisor to do an analyst for you. The solution is to understand what we are buying. Sean in his article show the two most important items such as :
Medical and Hospitalisation Expenses
– No one want to be ill but we can’t expected it. So secure the medical and hospitalisation insurance for every single person in family because we don’t wawnt to be saddled with financial burden during tough time.
Loss of income
– Financial advisor will ask you to purchase insurance to cover death, disability and critical illness. These will provide you a lump sum payout if these unfortunate events occur. The amount should help us tide through this period because if we loss income the key question to ask are:
1) Who to Cover ?
2) How much to cover?
Milestone 2: Deal Free (Consumer Debt)
We should ger rid of any debt which incurs more than 5% int4erest. It is difficult if you have high interest debts. Having huge debts with high interest can also affect the quality of your life as it is psychologically tiring.
Milestone 3 : Emergency Funding
It is a must to have emergency funding. The recommended amount of savings is six months of living expenses. It is not an investment fund. It is meant to be there so we can use it whenever we meet an unforeseen financial circumstances. It must be liquid and accessible. It should be kept out of sight but not out of reach.
MileStone 4:Advanced Goals
Work towards our future because our expenses in the future may be different from now. We should start preparing for those need.
That’s 4 milestone that been given by Sean Seah. It is a great tips that could help us to have better financial..
Book by Sean Seah