There is no difference between having your desired physical and financial house. Both of them require the same: a design, structure, the finished work exam and furnishing of each room accordingly.
You cannot buy the furniture first and put them in a storage room and then to get the design and structure of your house correct. However, many people do it with their financial house, buying all the financial products first then trying to get them fit into their financial house.
It may seem like a simple part of the overall construction process is the foundation, but getting it right before building your rooms to furnish them with the right products is incredibly important. The biggest reason for this is that your entire house sits on top of it! Any mistakes you make in the foundation will only get worse as you go up. You might skimp in the foundation and something fails, I can tell you that it cannot be an easy fix.
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 such as premature death, partial or total and permanent disablement and serious illness (- for instance cancer or heart attack-) will no doubt have an emotional strain however; they can, and often do, have a catastrophic financial strain for an entire family. The consequences of such events can result in unplanned loss of assets and lifestyle changes for you, your loved ones and business partners. Although an event might be a temporary one, the negative financial effects will last for many years.
Therefore, it is very crucial to have a solid structure, which has to support the weight of your wealth building and accumulation plans and goals like those that your physical house does. Do you know that after a building is built you cannot even see the foundations? Hence, it takes 30-40% of the time of building a house just to make sure the foundation is right and strong. The same thing applies to your financial house. Your financial foundation deserves the highest focus and attention.
Although everybody wants to have some form of protection, not many people take the action to have something in place.
Interestingly enough a survey was made by a research firm. The first question was that
What is your greatest hope in life?
The top answers were;
- To be financially secure
- To have happiness and security
- To be sure that my family will be secure
- To retain my health and my income
- To have the respect of my family and friends
The second question was that
What is your greatest fear in life?
The top answers were;
- Fear of insecurity
- Not being able to carry on for self and family
- Sickness and unemployment
- Poverty and death
People have always wanted and will look for security as it is our foundation generally at the cost of personal freedom.
There are four great threats to security: unemployment due to unexpected life events, total and permanent disability, serious illness and immature death. Life insurance offers you the most efficient method of achieving economic security against these four threats. You live, work, and bring home the fruits of your labour. You maintain certain standard of living that may not include Caribbean cruises and golf club memberships, but that do include a home for your family, food, clothing, education, and savings for your retirement.
Life insurance not only insures a life, it insures a way of life. Insurance makes it possible for you to have security and, at the same time dignity and freedom when you need it the most.
This document has been prepared by HQ Financial Solutions, 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 HQ Financial Solutions, 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 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.”