In the previous post about make your money work harder, we learn how to make money with money. Have we thought that we could lose it all? How about letting your money protect your money?
In our post 5 myths of financial planning, we talked about why people delay using insurance to protect themselves from risk. Top investment experts all over the world talk about the importance of financial planning/insurance but yet people still don’t do it.
Choosing to let money protect your money
Let’s take a look at this 2 jobs salary and benefits (A and B)
Most of you reading will probably have chosen between 2 or more job before. An informal survey done states that most people want to work for a company with good company benefits. Be it having a flexible cash system or a contingency cash system, with the salary being the same, people will choose the one with the better benefit. Now looking at both scenario A and B, which one will you choose? Most will choose B.
Naturally, we acknowledge that we prefer looking at more money. But what if we lose it all? If we lose our ability to work?
Picture 1: A person having heart attack
Why you should look to protecting your money?
Let’s look at statistics, one out of 3 Singaporeans will suffer from critical illness. 32% of those that have critical illness have been reported to suffer from another critical illness. Times have change. People are living long. People no longer die from the first critical illness. In a survey done, most people can only cover for 1.5 years of their lost income. What will happen if you have not recovered then?
Protecting money using money
For investment, there is this famous saying. If we take care of our downsides, our upside will take care of itself. Just like personal finances, we are always “saving for rainy days”. Have you realised that you can buy an umbrella to protect yourself from those rainy days? Instead of living in uncertainty of whether you are healthy enough to work, why not have the certainty of income even if you cannot work anymore.
There are many ways to protect your downside be it in investment or insurance. Journeywithmoney is conducting a basic financial workshop for people that wants to Generate money, Govern money effectively and Grow money exponentially.
I do invite you to join us for a FREE workshop where we can share more information. The workshop itself provides valuable information which we believe will make you financial literate.
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