Do you know that all your hard-earned money can be wiped out in just a blink of an eye? Yes, it’s true! If you do not have these three major financial needs.
You spent most of your time making money. To provide your personal needs as well as the needs of your family members. But making money is not enough to assure that you will be financially secure in the long run.
What you need is to have the most important major financial needs that can address your financial problems. By this, you can secure your future financially.
So, here are the three major financial needs you must have.
Three Major Financial Needs
1. Income Protection
Income protection in the form of life insurance. How does it provide protection? If you are the sole breadwinner of your family and in case something bad happened to you, it will protect your family in case you die.
Your beneficiaries can receive benefits that can help replace your income. It can help to pay debts and can be used also as an educational fund. And if your family wants to venture into a business, it can be used as capital. Thus, your family can still continuously support their needs.
Life insurance is not mainly for yourself but it is for your family – your loved ones. You do not want that when you are gone, your loved ones will be financially unstable. Life insurance is the answer if you die too soon.
2. Investment
Aside from income protection, investment is also included in your must-have major financial needs. Your investment can cater to your needs since it will continuously generate income. You can still support yourself and do the things that you love without depending on your children.
Mainly, investing in building your wealth and financial security by ensuring that your money will continue to grow. Of course, your investments should be aligned on what are your financial goals – their purpose.
Investing is a way of beating inflation and can be also a way of avoiding tax depending on what type. Some examples of this are mutual funds and Pag-IBIG MP2.
The prices of basic commodities are continuously increasing. Putting all your money in the bank is not really a good idea since it will only decrease its value or buying power.
And if you really want to be rich, investing is the only way to become one. The secret to becoming rich is to learn how to make your money works for you and that is through investing. Isn’t it fulfilling that you can do what you want to do? To visit the places that you want to explore without worrying since you already have enough funds?
But be reminded, you need to learn first what things you need to consider before making any investment.
3. Long-term Health Care
Another major financial need that must be included in your list is long-term health care. Your long-term health care will provide your health care needs when you retire and grow old.
You do not want to be a burden to your children since they also have their own families to support. And definitely, you should not rely solely on the government either to take care of your health.
It is undeniable that as you grow old, your health will gradually decrease. You will be more prone to sickness and other illnesses that it will not addressed properly can really shake your financial status.
This is where your long-term health care insurance will come in. It can help you to maintain good health and to provide adequate health care depending on what plan you avail. You can continue to support your health needs without affecting much of your money and your children’s financial status.
Summary
Availing of these three major financial needs as soon as you can is really advisable. It already encompasses all, if not most, of your financial needs and secures your future financially. Carefully planning ahead is one of the keys to being able to be in control of your future and molding it.
So remember, the three major financial needs that you must have are income protection, investment, and long-term health care.
How about you? Do you have any other major financial needs that you want to recommend also? Comment it below.