Financial Planning Tip #4 is to settle your basic Financial Planning needs before even talking about specialist financial services like taxation advice and investment management.
What Are Your Basic Financial Planning Needs?
If you do not know what they are and their priority, there is a simple model for you to remember, as you can refer to the picture below:
So how can you refer to the simple house model above?
Below any of your dream house can be built, you have to have the foundation set up first. So in this case, it will be in terms of your planning for your
- Life Protection for Critical Illness and Disability
- Health Insurance for huge Medical Bills
Why are they important?
Before you can have your luxurious interior design, furniture and such, you have to set up the foundation, the whole structure of the house, the fixtures and fittings first. These are of the highest importance to ensure the stability of the house. The initial cost for setting up these are high and you have to set aside huge amount of commitment before you get to enjoy the rest of the house later.
Therefore the same principle applies to Life Protection and Health Insurance. These two areas are of the highest importance. You can have the highest paid job or the most rewarding business but you have to be physically alive and healthy in order to enjoy all the benefits (moving up the scale to retirement, savings, dreams & ambitions and achievements).