Financial mistakes can be made out of ignorance and misinformation. At Summit Planners our professional advisers are trained and adequately equipped to offer the best financial plans to our clients, and advise them against making the three common mistakes of Not Protecting, Not Saving and Not Investing.
Not Protecting:
“I have always been healthy and strong so I will leave things up to fate. Plus I don’t have much assets to distribute hence things will fall into place naturally!”
Complacency has no place in a good financial plan. It never pays to take things for granted and that extends to your financial health as well! Think of insurance as a very big emergency fund that can help cover the things you couldn’t save up for in advance. There are so many different products available that making a decision can be difficult. This is where a professional financial adviser can help you tailor a customised suite of solutions; from which you can decide which ones to take up.
Estate planning is another vital aspect of protection that many people overlook or avoid due to misconceptions or taboos. Do you have to be rich and own many assets in order to plan your estate? The answer is NO! Estate planning is essential to ensure that your loved ones are well taken care of, and money can be channelled to the causes you care about.
Not Saving:
“Yay it’s payday and time to check out my online shopping cart, try out that expensive fine-dining restaurant and buy that new designer sofa I’ve had my eye on!”
Does this ring a bell? We often only think about the need for better financial discipline when we find ourselves lacking the means to pay for our material desires. This also means that you will not be able to fork out the necessary funds to handle unexpected situations such as acute and critical illness, sudden retrenchment or a family financial emergency.
The trick on building financial discipline starts with SAVING. The easiest way to begin is by setting a personal and practical budget. Doing so also compels you to take a realistic look at your expectations and goals. How do you get started? There are many handy apps available for download, or you can simply do it the good old-fashioned way – with paper and pen!
Not Investing:
“I have low appetite for risk and I prefer to keep my money where I can see it.”
It is true that investing carries the potential of financial loss; however it is one of the best proven ways to grow your wealth. If you don’t invest, you are missing out on opportunities to increase your financial worth. If you invest wisely and stay within your risk appetite, the potential to gain money will definitely be higher than if you never invested in the first place!
Again, it pays to get a head start. If you begin investing in your 20s you can build a portfolio with a higher risk tolerance and in turn attain higher gains over time. Choosing to invest in real estate can allow you to enjoy the benefit of assets that may appreciate over time, plus the advantage of low repayments in relation to higher inflation in the future.
We hope you’ve gotten a good grasp of what NOT to do, and go forth in building your assets wisely.
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