There is a common saying: If we fail to plan, we plan to fail.
Planning is much more important now than ever, since we are in this global pandemic together. We need to come together and make sure that we plan for the future. As we plan our individual journeys, we need to take into account our life stages, our goals and responsibilities, and our needs.
There are six different stages of life, which are all important and have a huge impact on your journey.
Entering The Workforce
The first stage is when you first enter the workforce.
After spending a quarter of your life in formal education, you feel you are ready to take on the world. But reality strikes when you transit into adulting.
This is the point where you have to actually earn money and pay for things. You are at the most vulnerable stage of your life because everything is just starting out. You are new in your career. You are new to work politics. You are new to the financial terms and jargon.
You have a big dream to start your own business or to climb up the corporate ladder. But your dream seems further and further away as you step into the new realm. First thing first, you must get your life in order and your foundation right.
Your goals and responsibilities at this point of time will be to increase income and start saving. You should also be insured with basic insurance to avoid burdening parents. You can consider buying personal accident insurance, medical insurance, and life insurance for your protection needs.
After Working For A Couple Of Years
After working for a couple of years, life seems to be more stable. For the typical office workers, you are getting used to the routine of 8 – 5. For the typical sales personnel, you are getting used to running for production and handling rejections all the time. For the startup and business owners, you are getting used to constantly facing new challenges every day.
Life is not a bed of roses. You are at the stage of growing your potential and maximizing your abilities. You have probably cleared your outstanding education loan and made your first pot of gold. You may be thinking of having a car or a house. For those in a relationship, maybe you are thinking of settling now.
This is all great but you have to be careful because there are some things that can go wrong with your life. You need to manage your money wisely and have emergency funds in place. In addition, you have to prepare for your marriage funds.
As your income grows, so does your need for insurance. Thus you should increase your life insurance coverage and get a comprehensive health protection plan.
A wedding is for a day, but marriage is for a lifetime.
Marriage can be a taste of heaven on earth, or it can be a living hell, depending on the choices you make. The choices you make include the partner you marry, and the financial decisions you make. A lot of marriages fall apart because of finances. According to statistics, money arguments are the second leading cause of divorce, behind infidelity. High levels of debt and poor communication lead to stress and anxiety when it comes to finances.
As the two of you join in union to become one, you must bear the household expenses together. You can have a joint account and save money together as a couple. You can have savings goals together, for example, saving for travel and vacation, or saving for a new property.
Together, you should have a family protection plan and to manage your mortgage risk.
First comes love, then comes marriage, then comes a baby in the baby carriage.
When a couple gets married, they are almost always faced with the inevitable pester from friends and family: So when are you having kids? The older you are, the more pressing the question seems to be.
And the time finally comes when you have your first child. It can be a roller coaster of emotions. Having a new baby can be pure bliss, but it can also be equally exhausting and overwhelming. For more information, you can check out my previous article on My Journey To Being A Father and The Concerns Of A New Parent.
You need to have the basic children support and to prepare for their education fee. After all, as a parent, it is our wish to give the best to our children and provide for their needs and wants. And they will have a bright future ahead of them.
For now, you should look into increasing couple insurance coverage and creating income replacement. You can consider buying insurance for children and do savings or investment plans to prepare for their education fees.
Our babies will not be babies forever; they grow up in a blink of an eye.
Nothing fills us with quite as much pride mixed with sorrow as watching our kids grow up and become more independent.
As your kids get older, they need you less for sheer survival but more to guide them through life, root them on and help them become independent beings. And eventually, they will leave your home and head out into the world on their own.
Now that your children are grown, what is important now?
The empty nest is both exciting and unsettling. You can find yourself becoming nostalgic and reminiscing about extraordinary and ordinary moments of your life when your children still lived at home. You can also find yourself having the time and freedom to pursue your own dream. When you have been working so hard toward raising independent children, what’s your next goal in life?
Your next goal can be looking into accumulating more wealth and investing more into properties and having a retirement plan for yourself and your partner. You should also do a review for comprehensive risk management to bridge family protection gaps.
After years of hard work, we will be looking forward to the happy retirement we desire and deserve. What is your ideal retirement?
Many of us spend years picturing our ideal retirement – whether it’s traveling the world, spending more time with family and friends, pursuing hobbies such as painting, gardening, cooking, playing golf, or fishing, or simply enjoying the freedom to relax and take it easy for a change.
We need to give lots of thought to planning for the financial aspects of retirement. How much do you really need for retirement?
You can manage your retirement pension and plan for an inheritance.
No matter what your life stage is, I am here to help.
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