25/10/2023
This is the “Solid Financial Foundation”.
WARNING: This is an eye-opener and might save you from future financial crisis.
Building a solid financial foundation is just like building a house. You build it from the ground up.
FIRST, you must have proper healthcare coverage in the event of a serious health problem or sickness. Both of these can greatly affect or upset a person’s financial stability, especially during old age. Statistics show that 90% of personal bankruptcies are due to unexpected and unforeseen illnesses.
SECOND, you must have proper protection in the event of your premature death. If this happens, then you have instant money to pay off any responsibilities and liabilities left behind.
THIRD, manage and pay off all your bad debts.
FOURTH, set aside 3 to 6 months of your income to deal with sudden changes in the job or business. This is also to pay for unforeseen accidents or repairs.
FIFTH, save and make long-term investments.
You should consider your healthcare and protection as a priority. Why? Even if you save a few hundred pesos a month, but have no healthcare and life insurance, it will not take you far. When you get sick, disabled, or die suddenly, your savings won’t last very long. Getting long-term healthcare and life insurance are the best investments.
Likewise, if you experience an emergency but your money is tied up in some investments, how could you deal with sudden unexpected expenses? If your money was not tied up then it could have been used as your emergency fund. Worst, if you have an emergency and you have no savings or emergency fund, then you may have to apply for debt.
A strong foundation will result to you having sturdier and resilient finances that can withstand any money-related storms, tornadoes, and earthquakes. Following these five building blocks of a strong financial foundation will help build and secure your financial future.
Source: p.18-19 of “The Secret to Saving and Building your Future” book.
Can you start to building your solid financial foundation right now? Yes, and that’s our goal! :D
It’s not as hard as you think! Having a “long-term healthcare” is equivalent to having (1) a healthcare, (2) a good life insurance coverage, and (3) an investment!
If you want more of these financial concepts/strategies, just send me a personal message for free financial advice and reserve your spot for a free live financial coaching or webinar wherever you are. :)
To Build your Solid Financial Foundation
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