35. Finances 101: 10 Perspectives - From my point of view. 9. Five Perspectives: Financial Goals. Go


In today's day and age, due especially to rising costs and incomes that may not rise in the same quantum or frequency, owning property may be a difficult goal to achieve. So difficult that some may not even bother to set it as a goal.

Though I agree, as mentioned in my previous post, that many things that people traditionally own may not need to be owned today, I still personally believe in the security of having a minimum of one property under your own name.

For me, it is a question of security. The comfort of knowing at least that no matter what happens, you and your family have a roof over your head. A bit traditional, I know, but for security, that's one of my goals.

Now the property need not be a super luxurious place that can park 5 cars, with a swimming pool and an orchard for a garden, it is just nice for a family to stay, comfortable and safe, so the place can be a small landed property or even a condominium would do for me.

Another aspect of security I looked at is protection in case something untoward happens to me, be it an accident, death, loss of ability to generate income for the family, etc.

While many may be taboo to speak of this, let's get realistic. These things happen, better be uncomfortable and talk and prepare now rather than allow a shocking event to turn our worlds upside down.

For this, as a basic, I turn to my trusty insurance provider / your favourite agent, if you have any, to help.

While Post 4 spoke about insuring stuff as part of stewardship and Post 7 used insurance as a form of preparation for retirement income, today I use insurance as a form of replacement income. For a time when you are still alive and kicking, but for whatever reason, cannot work or generate income on your own. You still need income to live and get by.

While it is true that many may use Investments and Savings for this, while you are starting out or do not have much savings on the side, there might not be much assets generating sufficient passive income for you were an untoward incident happens out of nowhere.

Next week I'll write about using certain portions of our income / savings to invest, but for now, I look at insurance as a way of providing this replacement income. Of course, when we start off, we don’t have much to set aside, but because we are actually preparing for something that may not happen, insurance is the best model to go for this, in my humble opinion.

Do you have a plan set aside for emergencies like this?

Think about it….

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