Building a strong financial foundation is not complicated as you think. It is very simple and doable. But you cannot make a shortcut. It is similar to building a house, you must build it from ground up.
First, you must have a proper health care coverage in the event of a serious problem or sickness. One major illness can wipe out your savings or investment or real estate particularly during your old age.
Second, you must have a proper protection in the event of untimely death. If this happens, then you have instant money left behind for your family dependents. There are only two constant in this world, DEATH and TAXES.
Third, you must pay off all bad debts. You cannot sleep well at night knowing where to get payment of your debts.
Fourth, you must establish three to six months worth of emergency fund. Sale in the mall is not an emergency. This will be used during sudden loss of job or business unforeseen accidents, and house repairs.
Fifth, you can make long term investment like mutual funds or direct stock investing.
Making a short cut or joining a scam will hurt you in the long run.
Following these five steps will help secure your financial life.
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