One of the first steps in financial planning involves coming up with a position of net worth which involves listing all assets against liabilities and coming up with a net position. So the next question would be; What is your Biggest Asset? Is it your car, house or some form of financial investment?
Risk managers would indicate to you that your “future earnings capacity” is your biggest asset. In fact, this is the main reason why insurance is important. You cannot leave this asset uninsured against injuries, sickness and disability. Managing your finances tightly and starting to save is all very well but what happens if your biggest asset (i.e. you and your ability to earn an income) is put out of action? There are risks involved in today’s lifestyle and it is critically important that you analyse your individual circumstances and risks and get protection against the very real possibility of you not being able to generate an income. There is a fine balance in ensuring you do not have too much cover, too much of the incorrect product and then also having some money over to keep a savings plan on track. In the same way that most individuals do not self-diagnose and self-medicate there is need to carry out a regular assessment of your risks and protection.
Piggy recommends individuals and households to do the following;
Secure or protect income and any future earnings;
Create a Freedom or Emergency Fund; and
Start Saving for Retirement as early as possible.
C-Trade provides a perfect platform to create a personal Freedom or Emergency Fund that can cover households and individuals on unplanned spending such as medical and dental emergencies, car repairs and insurance excesses. That said, one of the most powerful tools that can be used to enhance your ability to create future earnings is an investment in financial education.
An investment in financial knowledge enhances your capacity to create earnings
Piggy has recommended beginners who would like to venture into the world of Global Market Online Trading to complete the babypips course. The instructions are outlined here; https://piggybankadvisor.com/2019/05/30/an-fx-trading-course-for-beginners/
Join a piggybankadvisor.com WhatsApp based social trading group today by following the link; https://chat.whatsapp.com/GOqNASPbCFWEyNDb5AWG28
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