ways to protect yourself financially.
Hello peeps!
Hows your November? We left another month before entering 2022. These past few months no doubt it gave us some uncertainties in life. No matter who you are, it is important to have certain plans and measures in place to protect yourself (and your family) financially. Why? Because life has a way of throwing curve balls at us when we least expect them and certainly when they’re not wanted. To make sure you’re able to make lemonade out of the lemons that can sometimes show up unannounced, follow these tips below and get some much needed peace of mind;
1.establish an emergency fund.
Emergency funds (also called Rainy Day Funds) are those funds tucked away in case of an emergency. As a general rule of thumb, it is wise to have at least three to six months of your income saved in an emergency fund. This way, should you find yourself out of work or otherwise down on your luck, you will still be able to meet your financial obligations and stay afloat in the meantime.
Saving money for an Emergency fund is certainly less fun than online shopping or nights out with friends, but I can assure you that the stress of not having money when you most need it is even less fun. If you don’t currently have any emergency savings, don’t fret…start now!
If you open a savings account, you can do so any number of ways. You can always open one with your local bank and begin depositing money each week. If you’re more inclined to save if money is automatically deducted from your bank account and transferred to your savings.
2. get a takaful plan.
The concept of takaful may seem like something you could not possibly need when you are young, but unfortunately, that’s not the case. Health takaful, house’s takaful, car takaful …all of these things come with fees attached, but are absolutely worth your while. Protecting yourself is so important – in the case of an emergency, you don’t want to be unable to seek medical attention (or hit with a huge debilitating medical bill!). Additionally, if you find yourself an unfortunate victim of some clever thief (it happens), the losses will be far more palatable if you have house’s takaful to lean on.
Hibah is one of the more important types of takaful to have, particularly if you have children or a dependent. Without hibah, your family could be left with more than a giant, gaping void in their lives should the unimaginable happen to you. Most families know to contribute hibah for the working spouse, but not all families purchase takaful for the stay-at-home-mom. If you’re a stay-at-home-mom, here’s the thing: you are important! You are the heartbeat of the family and keep your little ones engaged on a daily basis. If something were to happen to you, how would your family be able to continue? When you contribute for hibah, consider all of the costs you would need to include in order to maintain the same quality of life that you have now: the daily duties, child care expenses, household maintenance, etc. Hibah is the key to ensuring your family is protected and you, in turn, can achieve greater peace of mind.
3. set up a wasiat.
If you have children or a dependent, you may find yourself in need of a wasiat. Why? In the case of something happening to you, a wasiat is designed to serve as your legal way to ensure your wishes are honored. If you have had this item on your “to-do” list for quite some time, make a goal to cross this item off of the list this next week. There are helpful sites out there such a amanahraya.my that can quickly work with you to establish a legal document for a very reasonable and affordable price!
4. create a financial plan.
Believe it or not, ignorance is not bliss when it comes to your finances. Without a concrete plan, it can be easy to feel “stuck” or confused. Have a financial plan in place to account for things such as your spending, your budget, your investments, your retirement goals, etc. is critical if you want to make sure you are prepared. Financial plans are designed to help you feel more established and give you the tools and roadmap you need to feel confident, prepared, and fulfilled. Book your time with me for free one-to-one financial consultation here.
5. stick to your budget.
One of the best ways to ensure you sleep better at night is by establishing a budget and actually sticking to it. Sure, there may be other ways you’d like to spend your time, but if you stick to your budget, you’ll find that you will be able to course-correct potentially sabotaging behaviors before they spiral into unfortunate situations. You’ll also be able to give your money a purpose and a plan instead of it telling YOU what to do. Both of these things will give you greater peace of mind, will help you life a more purposeful life, and will be an essential part of staying prepared.
Great to catch up with you. Hope my tips above will help you greatly.
Untill next time.
with kindest regards,
EMIR xx
