Just like a builder, when they’re building a home, they start with the foundation.
Insurance
The main foundation is life insurance. Protecting your loved ones and assets if anything should happen to you.
Investing
The second thing that we have to consider when building our financial household is investing. We can’t just put our money in the bank and forget about it. We need to ensure that we’re investing in a vehicle that’s going to give us the most significant return. And when we are investing, we also have to think short-term, medium-term and long-term.
Longterm is for retirement. Medium-term is, for example, if you want to buy a house in a couple of years, and the short-term is that emergency fund just in case your car needs to be repaired.
Get a Will
And last but not least is getting a will put in place. A lot of us think about it, but we never really follow through. So having a will in place is really important. What that means is when you are no longer here, those assets that you’ve worked really hard to accumulate will be allocated according to your wishes.
