As we welcome a new year, I'd like to congratulate everyone for getting through the very tough year 2020. Congratulations everyone! We all did it.
To start with, allow me to share with you all the three (3) important life lessons I ascertain last year.
1. Savings is important
2. Relying on only one source of fund is not enough
3. Financial Protection is essential as savings
 |
| Photo Courtesy to iStock |
Having savings is important for many reasons. For instance, savings is important as it would help us protect in the event of any financial emergency we may come along. Also, it would help us avoid debts or even reduce any financial stress.
Why do we need more sources of income?
This question might be off but how many sources of income do you have? Well, the COVID-19 Pandemic is surely a wake-up call that relying on only one source of income isn't ideal at all.
As most of the countries around the globe announced lockdowns in almost all areas, our work and businesses are affected. It resulted in a global crisis, financial losses, and even poverty to some.
Why do we need more than one source of income?
Having more or even another source of income is more like having financial security. It would allow you to have more income streams, and at the same time, if you lost your job, you have a backup that would help you sustain your needs, monthly bills, etc. Financially wise, isn't it?
The Essence of Financial Protection
 |
| Photo Courtesy to Portal Financial Planning |
What is the goal of financial protection? According to the World Health Organization (WHO), Financial protection is achieved when direct payments are made to obtain health services. Also, it protects people from being exposed to financial hardship and does not threaten living standards.
Same with, if you consider an aircraft without an oxygen mask and life vest dangerous, wouldn't you agree that a life journey without protection is dangerous as well? That's the essence of Financial Protection. It protects you and your family's income from any life uncertainties.
I'm much gleeful that I have come to realize at a very young age (and even before we face this global crisis due to the pandemic) that savings, augmenting income, and even financial protection are paramount to life while living my best life (being able to travel with my partner, buy the things I want and need as well as for my mom and younger sister, finance my younger sister's school fees, etc.). What's my secret and how did I do these all? Well, it's all about mastering the art of balancing your priorities and self-discipline at the same time.
Besides, I am very passionate about encouraging millennials (like me) about the importance of these things because I have seen the beauty of them. Moreover, I would like everyone to have a worry-free financial life and enjoying their retirement.
 |
| This photo was taken in the traditional restaurant where we dined in Ho Chi Minh, Vietnam. (Haven't read my Vietnam Blog yet? Click here) |
hii friend, awesome blog
ReplyDelete