The Future – Realization and Its Challenges
In the world where everything seems moving so fast, so as our age. Isn’t it? Someday we will feel all of the sudden that we cannot do the things we usually do. Our body will eventually weaken as we continue to age. Come to think of it – What lies ahead in the future? Are we prepared for the challenging times ahead or are we not? What if we live too long, who will take care of us? What if we die too young who will take care of our family once were gone? Without preparation, whether we like or not most of us will face seemingly challenging life ahead like the following:
- Uncertain Labor Market
- Robotics, automation and powerful software have been developed which causes unemployment.
- Low Savings and High Debt
- Without proper financial knowledge we have to work beyond 65 years of age in order to survive
- High Cost of Education
- Apparently we are experiencing it every year.
- Increasing Cost of Living and the like
THE SOLUTION: PREPARATION IS THE KEY – TAKE CONTROL OF YOUR FUTURE
Our future is in our hand – we must take control by educating ourselves in all aspects of personal finance. It is not easy but we must. Know our priority and understand the building blocks of a solid financial foundation like the following:
- Increase Cash Flow
- Proper identification of wants and needs, additional income through online selling and the like
- Health Care (Long Term and Short Term Care)
- Get appropriate health care coverage to ensure proper protection in case of serious sickness or health problem.
- Protection/Life Insurance
- Ensure proper protection in the event of premature death. If this happens, then you have instant money to pay off any responsibilities and liabilities left behind.
- Manage and Eliminate Debts
- Pay more than minimum and reduce your debt sooner. Debt can turn into a disease and could control life and diminish happiness and limit freedom. Getting out of debt maybe one of the hardest thing to do and it takes time and effort. But you must persevere because you can never be truly free until you are debt free. Live within your means.
- Emergency Fund
- Set aside at least 3-6 months’ income to help cope with emergencies and unexpected circumstances like job loss, business not going well, Home or car repairs, illness, disaster, etc.
- Save and make long-term investments for retirement and educational needs of your children. Remember to save and invest the right way.
We must consider our healthcare and protection as a priority. For example you get sick, disabled or die suddenly, your savings might not last very long. It is advisable that we get long-term healthcare and life insurance as our investments. Having equipped with strong financial education and foundation is a must to build and secure our financial future.
Proper Financial Education and discipline will take care of us and our family’s future when time arises such as if we live too long or we die too young. This will also prepare ourselves when we retire and not to be dependent on someone else’s income. Invest in our future by acquiring Financial Education, exercise discipline and apply the knowledge you learn.
As Bill Gates once said, “If you were born poor, it is not a mistake; but if you die poor, it is a mistake. Remember that financial education is not just for the wealthy – it’s for everyone.
Credits to “The Secret to Saving & Building Your Future” book.