Investing can seem like a very daunting process. Here’s how you could get started.
The sooner you start, the easier it will be to build a big enough nest egg to make life easier in the future.
Investing always includes risk.
Risk of what? Well, simply put, it is the risk of losing your money, and your mind along with it.
Hence, it is important that you have a solid financial foundation before you begin.
What is a “Solid Financial Foundation”?
A solid financial foundation is your first line of defence: your health, hospitalization and accident insurance, your rainy day & emergency fund savings.
This serves as your first and most important line of defence for your financial health, as it protects your ability to continue earning an income (or at least weathers you through the days in which you can’t)
A couple of things to get right here:
1. For your “defensive” insurance, be sure to include adequate hospitalisation insurance on top of what your company already provides, as company insurance is not portable (you cannot take it with you should you be fired or leave the company). In the event you develop a medical condition during your company cover, and you subsequently get laid off, you’ll not be able to cover this medical condition in your hospitalisation insurance.
2. For self-employed people, ensure your emergency funds can cover expenses, liabilities and loans to be paid off, etc for a good 12 months (6-9 months is recommended for full-time employees)
3. If you have dependents such as children or if you’re supporting your elderly parents, speak with a financial consultant to ensure you have adequate insurance cover. Your financial consultant is trained in providing expert advice and solutions for you.
Ready to take charge of your financial health? Book your appointment for a financial review: https://calendly.com/cherietanjy