 |
| Photo by JIRO |
Preparing for your financial future now is better than waiting for a financial problem to appear before you do anything. This is because its harder to look for possible solutions to existing and current financial problems than to prepare for them in advance.
To help you fully understand why preparing for your financial future early is important, I've prepared 5 reasons why you need to do it:
1. It's cheaper to prepare for your financial future early - You might think that getting insurance, long term healthcare and investments now are expensive. But if you look at the long term implications of these financial tools, you'll actually be saving more money (especially for healthcare and investments). Once you start approaching retirement age, these financial tools become even more expensive to acquire. And it will be more expensive for you and your family in the future if you don't get them. Because as we get older, we tend to experience more medical problems, so having long term healthcare will address that need. Once we retire, we stop earning money already. Yes you might receive a big retirement package from your company, but will that be enough to cover for everything you need until you die? That's where investments come in. If you were able to start early, you might have accumulated a big enough amount already that can cover for everything you need, until you die.
2. It's easier to prepare for your financial future early - It's easier to get financial tools early in your life, when you don't need them yet. Healthcare and insurance companies don't just give plans to anybody. They conduct a background check first to see if the person has undergone or is currently undergoing any major health problems. They also check the family medical background to see the likelihood of them experiencing major health problems. This is because it's going to be costly for them to give plans to people who will be using them in less than a year of paying for their plans because of a major health problems. Imagine these companies just giving plans to everyone regardless if they are more likely to get sick or not, they'd go bankrupt in less than five years. That's why it will be harder, not to mention costlier for older people to get these services. Because of the higher risk they provide.
3. It's more convenient to start early - Healthcare, insurance and investments are financial tools that you'll need to acquire before you actually need them. Yes, it is possible that you may not need them in the future. But what if you did? You can't just suddenly go to any healthcare company or insurance company and demand that they give you a plan because you've been diagnosed with a terminal illness. Or go to any investment house and demand for a big amount of retirement money because you're savings won't be enough to cover you. So it will be more convenient for you to get them when you don't need them yet, just in case you will in the future. This will be your protection from any unwanted and unctrolled circumstance happening to you.
4. Time is precious - All of grows old, no one stays young forever (unless you're immortal or something). So preparing for your financial future while you're still in your 20's or early 30's gives you ample advantage to grow your investments or get plans at lower prices, as opposed to starting in your 40's or 50's. Take a look at investments. If you start investing P10,000 in a mutual fund that grows at an average rate of 12% a year while you're still at 24 years of age, you'll have grown your money to P640,000 by the time you reach the age of 60. Save the same amount of money at the same mutual fund with the same 12% average annual growth at the age of 40, it will only reach P100,000 by the time you reach 60 years old. So which do you want to have, P640,000 or P100,000? So start early.
5. No one will do it for you - If you don't prepare for your financial future, no one will do it for you. You can't expect your company, your friends or anybody else to do it for you. Because it's not their life, it's yours, and you are the one responsible for it. So be responsible enough and take care of your own financial future.
It's important that you prepare for your financial future as early as possible. You never know when you might need it.
2. It's easier to prepare for your financial future early - It's easier to get financial tools early in your life, when you don't need them yet. Healthcare and insurance companies don't just give plans to anybody. They conduct a background check first to see if the person has undergone or is currently undergoing any major health problems. They also check the family medical background to see the likelihood of them experiencing major health problems. This is because it's going to be costly for them to give plans to people who will be using them in less than a year of paying for their plans because of a major health problems. Imagine these companies just giving plans to everyone regardless if they are more likely to get sick or not, they'd go bankrupt in less than five years. That's why it will be harder, not to mention costlier for older people to get these services. Because of the higher risk they provide.
3. It's more convenient to start early - Healthcare, insurance and investments are financial tools that you'll need to acquire before you actually need them. Yes, it is possible that you may not need them in the future. But what if you did? You can't just suddenly go to any healthcare company or insurance company and demand that they give you a plan because you've been diagnosed with a terminal illness. Or go to any investment house and demand for a big amount of retirement money because you're savings won't be enough to cover you. So it will be more convenient for you to get them when you don't need them yet, just in case you will in the future. This will be your protection from any unwanted and unctrolled circumstance happening to you.
4. Time is precious - All of grows old, no one stays young forever (unless you're immortal or something). So preparing for your financial future while you're still in your 20's or early 30's gives you ample advantage to grow your investments or get plans at lower prices, as opposed to starting in your 40's or 50's. Take a look at investments. If you start investing P10,000 in a mutual fund that grows at an average rate of 12% a year while you're still at 24 years of age, you'll have grown your money to P640,000 by the time you reach the age of 60. Save the same amount of money at the same mutual fund with the same 12% average annual growth at the age of 40, it will only reach P100,000 by the time you reach 60 years old. So which do you want to have, P640,000 or P100,000? So start early.
5. No one will do it for you - If you don't prepare for your financial future, no one will do it for you. You can't expect your company, your friends or anybody else to do it for you. Because it's not their life, it's yours, and you are the one responsible for it. So be responsible enough and take care of your own financial future.
It's important that you prepare for your financial future as early as possible. You never know when you might need it.
No comments:
Post a Comment