February 9th, 2009 | Posted in Financial Tools, Personal Finance, financial goals, financial planning, insurance
In the previous post, we discussed about the first corner stone of Insurance in Financial Planning - Protection Planning. We shall look at the next two cornerstones in this post.
Insurance as an investment and accumulation tool
While traditional life insurance policies such as whole life and endowment policies do not looked as great as investments, they are extremely good savings and accumulation vehicles.
The reasons are
- Systematic Savings Scheme
- Better Than Average Yield
- Tax Advantage
- Relatively Low Risk
1. Systematic Savings Scheme
The secret of savings is the ability to save or set aside a fixed amount of money consistently and regularly. This is also the number one reason why periodic amount required from the policyholders to maintain the policy is so vital in helping you achieve your long term goals such as children’s education fund etc.
Continue reading »
February 4th, 2009 | Posted in Blog, Financial Tools, Personal Finance, financial planning, insurance
growwealthtips_insurance in financial planning
What is Financial Planning and the role of Insurance in Financial Planning? It is never easy to answer this question as different people will give you different definitions.
A simple way of saying it will be proper management of your finances to sustain your current financial status so as to meet your future financial goals, wealth accumulation and retirement. Financial Planning generally includes the following
- Protection Planning (Insurance)
- Investment and Accumulation Planning
- Estate Planning
- Tax Planning
- Retirement Planning
- Asset Allocation
Continue reading »
January 19th, 2009 | Posted in Personal Finance, financial planning, insurance
Different people have different insurance requirements due to varying personal financial needs. We have to admit that with the vast range of insurance products in the market, selecting an insurance policy can be quite an experience. Which one to pick? Who to buy it from?
Put it simply, there are so many things to consider
• Premium rates
• Policy benefits
• Bonus projections
• Guaranteed cash values
growwealthtips_financial needs analysis FNA
With some many different products from different insurance companies, how do you select the “best policy” when it is almost impossible to compare them apple to apple? This is the common mistake most people make. Instead, you should ask the most fundamental question - that is “What do I need?”
Through a simple 6 steps exercise called Financial Needs Analysis FNA which can be used to help to evaluate your risk exposure to events like death, illness or disability. This in turn will help to in your decision to determine how much insurance you need. Continue reading »
January 12th, 2009 | Posted in Money Management, Personal Finance, Saving Money
Too Much Savings Means No Money To Invest
We are in the last post of these 4 Parts Series on Top Money Mistakes People Make so if you are new here, you may want to follow this link to Part 1 of Top Money Mistakes People Make
This post will conclude with the last 3 as below
- Mistake #10 - Not spending within your means
- Mistake #11 - Too much debt
- Mistake #12 - Too much savings
Mistake #10 - Not spending within your means
This is one of the most basic of personal finance. No matter how much you earn, if your spend more than you earn, you will be in debt. There is no way you can be rich unless you understand this simple principle of spending with your means or in simpler terms, spend less than you earn. Continue reading »
January 10th, 2009 | Posted in Money Management, Personal Finance, Saving Money
Continuing from where i left in my last post, here are the next three Money Mistakes
- Mistake #7 - Spending windfalls or money saved somewhere else
- Mistake #8 - Not investing
- Mistake #9 - Not buying insurance
grow_wealth_tips_investing is a must to grow wealth
Mistake #7 - Spending windfalls or money saved somewhere else
What do you do when you receive a windfall like pay rise or bonuses? Where did the money go after you save some money when you purchase something at a cheaper price? Splurge it or spend on something else just like most people do. If you do this, you are doing yourself a great disservice, this “extra” money can be put to better use. Continue reading »
January 8th, 2009 | Posted in Money Management, Personal Finance, Saving Money
My previous post shares with you the first three Top Money Mistakes (Part 1 of 4) People make and we shall continue the list here with the next three
- Mistake #4 - Not tracking your finances
- Mistake #5 - Borrow at high interest rates
- Mistake #6 - Money leaking away
Mistake #4 - Not tracking your finances
You will be surprised when you ask around and many people cannot give you an answer on how much they spend and how much debt they have. Bear this in mind, if you not even aware of where and how you spent your money, forget about financial planning and getting rich because you will not even know where to start. Continue reading »
January 4th, 2009 | Posted in Money Management, Personal Finance
Let’s be frank, most people are poor with their finance and make mistakes. What is important is that we learn from our mistakes or better still, other people’s mistakes. Being able to recognise and then eliminate these mistakes are vital steps to your financial freedom. These posts identify the 12 Top Money Mistakes that most people make and how you can avoid and overcome them.
Mistake #1 - Spending on impulse
grow_wealth_tips_sale
Impulsive spending are things that you buy which are not planned for and seldom need. For instance, you go for window shopping aimlessly and see a sign screaming 70% discounts or those Buy 2 Get 1 Free Deals on things you rarely use but still open up your wallet or purse as it was too good a deal to miss. Chances are you will buy and forget.
What you should do - Plan your purchases before you head to shopping. Bring “just enough” money so that you will not be tempted to buy unnecessary things. If you really need something, go back the next day. Do not be tempted by these sales techniques. Continue reading »
January 1st, 2009 | Posted in Personal Finance, financial planning
Happy New Year 2009.
There are many ways to grow your wealth and be financially free. What are the secrets on How to Become Wealthy? In this post, i shall share 10 hot tips that i have found and practise on my search on How to Become Wealthy. Many of these tips may looked simple but are what the top millionaires in US have used. Here’s the 10 Tips on How To Become Wealthy
1. Start Early
If you want to be wealthy, start as early as you can. Not next month, not tomorrow but start today and use time to your advantage for compounded growth. The longer the time horizon, the better for you and lowers your risk too. Continue reading »
December 31st, 2008 | Posted in Saving Money, financial goals, financial planning
If your goal is to grow rich and become wealthy, there is one tip that you must follow, that is to set clear financial goals. The New Year is usually a good time to set some financial goals and get your financial plans to work.
Likewise, if you want to succeed in your financial goals, you have to be realistic and set attainable goals - small ones to start it off. As the saying by T. Harv Eker “Success Breeds Success” so have some small successes first, build up your confidence and carry on from there.
Having said that, here are 4 Reasons Why You Should Set Your Financial Goals For The New Year.
- Helps You Manage Your Budget
- Helps You Get Out of Debts
- Helps You To Save More
- Helps You Save For Retirement Continue reading »
December 30th, 2008 | Posted in Money Management, Personal Finance
You made it! This is the last of the 7 Part Series on Money Management Strategies but it could be the most important of all – that is your Emergency Fund. Read below for the last Money Management Strategy - Strategy 7.
Strategy 7 – Build Up An Emergency Fund
Why do you need an Emergency Fund?
Many people have the habit of spend first and deal with money problems later and they spend like there is no tomorrow. Their favorite quote is “What if tomorrow is the end of the world”. It is usually a big mistake as they often come to realize that tomorrow ALWAYS come and moreover, with loads of unexpected events as well. Continue reading »
