Sunday, 7 September 2014

Financial Stability

Before starting to a riskier investment or high commitment investment. It's better to ask yourself  few questions and check your risk meter.

Kindly answer Yes or No
1. Do you have emergency funds?
2. Are you debt free or loan free?
3. Do you own your house?
4. Are you permanently employed or managing your own business?
5. Do you have life and health insurance?
6. Do you have education plans for your kids?
7. Do you invest regularly without missing any month?
8. Do you give for charity or church?

If  you answered at least 5 Yes answers then you are on the right track, and try to work out all other questions that you answered No. Check your financial meter then you can move to other high risk investments.

Money is a big part of our daily living and yes the measure of financial stability always falls back to the questions how much money do you have or What is your net worth? Do you have enough money to support your family? Are you living paycheck after paycheck?

Once you understood the value of money and educated yourself about financial instruments, it will be easier for you to achieve financial freedom. The root cause of poverty in our country is lack of financial education. There is no subject in highschool about managing money or saving money. Let the revolution starts at your home. If there are circumstances that you cannot change then change your approach.

I'm looking forward that someday, every Filipinos are financially educated. Thanks to different financial forums and movements spreading financial literacy.

Sincerely yours,

Newbie Mentor

No comments:

Post a comment

How to Ensure you Have a Long Lasting Retirement?

#RetirementGoals. Everyone needs to plan for retirement because there will come a time that you will stop working. Sometimes, it can also b...