There is no difference between having your desired physical and financial house. Both require the same elements: design, structure, examination of the finished work, and furnishing each room accordingly. You can't buy furniture first and stash it in a storage room before getting the design and structure of your house right. However, many people do this with their financial house, purchasing financial products before ensuring they fit into their financial plan.
While the foundation may seem like a simple part of the construction process, getting it right before building and furnishing rooms with the appropriate products is crucial. The foundation supports your entire house, and any mistakes made here will only worsen as you progress. Skimping on the foundation could lead to significant issues that aren't easily fixable.
A solid financial wealth will also be based on a strong foundation of wealth protection where it will reduce the financial impact of certain events that are out of our control such as premature death, serious illness, total or partial disablement, fire or an accident. Unfortunately, some people underestimate getting the foundation right first. They are all concerned with increasing wealth in their lives, however managing and protecting the wealth, assets and lifestyle they currently have is an extremely important aspect to consider.
Events like premature death, disability, or serious illness can cause emotional strain and catastrophic financial strain for families. These events can lead to unplanned loss of assets and lifestyle changes that last for years.
Therefore, having a solid financial structure that can support your wealth-building goals is crucial, just like the foundation of your physical house. Although the foundation may not be visible once the building is complete, it requires a significant portion of time and attention during construction. Similarly, your financial foundation deserves the highest focus and attention.
Despite everyone wanting some form of protection, many people fail to take action to put something in place. Surveys have shown that people's greatest hopes often revolve around financial security and happiness, while their greatest fears include insecurity, sickness, unemployment, poverty, and death.
Security has always been a priority for people, sometimes at the expense of personal freedom. Life insurance offers an efficient method of achieving economic security against threats like unemployment, disability, serious illness, and premature death. It provides the means to maintain a certain standard of living and ensures dignity and freedom when needed the most.
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DISCLAIMERS
This document has been prepared by Navel Private Wealth, an Authorized Representative of Lifespan Financial Planning Pty Ltd ABN 23 065 921 735, AFSL No.229892 based on providing for information purpose only. Accordingly, reliance should not be placed on this material as the basis for making an investment, financial or other decision. While all care has been taken in the preparation of this document (using sources believed to be reliable and accurate), to the maximum extent permitted by law, no person including Navel Private Wealth, Halle Yilmaz or Lifespan Financial Planning Pty Ltd, accepts responsibility for any loss suffered by any person arising from reliance on this information. Before acting on this material, you should consider its appropriateness, having regard to your financial circumstances and needs, and whether those changes may, may not be made law, and talked to a specialist in that field.
Halle Yilmaz is a financial adviser and business consultant. As a financial adviser, she gives solid advice that can create rapid and lasting results for her clients. Sign up for her free E-Book and download “7 Steps to Healthy Wealth Management."