Despite your best intentions, have you found yourself in a more stressful life than you’d like? Thankfully there are a few ways you can develop your finances to relieve some of the worry.
When you know you are financially stable a strange thing happens, you become more focused more comfortable, issues that would have bothered you in the past are taken in your stride.
How do I develop a stable life?
Build a solid foundation
3 key principles to create stability.
Health insurance, an emergency fund and critical illness insurance are your priorities in that order, when you start to develop your finances. It is essential to have all three of these in place before you attempt to invest, buy a property or commit to other long term expenditure.
- Health insurance
Your life is your most precious commodity. If you are hurt and need medical attention, having health insurance will ensure you are treated without delay. In most case’s health insurance is provided for by your employer. If not, for whatever reason, you must get cover.
- Emergency fund
Three months salary should be held in cash offshore for emergencies. This is not your float in your day to day account. This is to provide immediate spending power when you need it.
- Critical illness insurance
If you fall terminally ill and are unable to work, without critical illness insurance you will be faced with very difficult decisions. Imagine if you are forced to keep working because you need the health insurance to cover your medical costs. The scenarios are endless. Critical illness insurance will pay you a lump sum on diagnosis. This money will give you options to make the situation better for you and your family.
Once you have this in place correctly you have the basics of a good financial plan. Now you can look to the future and plan for the things you want to achieve with your money.