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Setting long term financial goals

Have a weekly/monthly budget, save and pay off all your expenses. The savings should cater for emergencies and the excess could be used for investment. Investment is a way to make your money grow, but it is associated with some risks.

Always ensure that you have more money coming in than going out. Overspending is the biggest financial issue, but you can control your spending by creating a budget, living a lifestyle which is realistic for your income and working toward healthy spending habits.

One may consider investing in:

A pension fund or scheme - which provides you with an income after retirement. You may wish to take a Private Pension Scheme whereby you contribute a sum of money every month into a fund which will be available to you after you have stopped working.
Insurance companies – Provide you a financial compensation or a replacement for an unexpected loss you have insured against. There are different types of insurance policies you may opt for

Types of Insurance Policies

Examples of insurance policies you may opt for you and your family are:

Life Insurance

Insurance companies provide life insurance policies where you contribute on a monthly basis and the sum is repayable upon maturity (over a defined period) or upon early death. In case of death, the beneficiaries are eligible for the benefits.

Health Insurance

Insurance against the risk of incurring medical expenses by individuals (e.g. Hospitalisation, surgery, optical, hearing expenses). Health is unpredictable and medical expenses is exorbitant at times. Having family members insured may help to reduce medical expenses in the future.

Educational Plan

Some registered institutions such as Insurance companies provide for flexible savings plans which include educational plans. It enables you to build up a capital amount, which can be cashed upon maturity and will give your child the opportunity of carrying out studies at higher education level or to develop professional skills for a good start in life. These plans also come with security clauses in case of death or disability of parents.

Travel Insurance

Travel insurance is a type of insurance that covers the costs and losses associated with travelling. A travel insurance policy can protect you from a variety of unexpected circumstances e.g. Medical services as a result of a sudden illness or accident, loss of luggage and personal effects, accidental death or flight accident coverage. Having a travel insurance can prove to be very beneficial and reduce the financial burden in case of unexpected events.

Seeking advice before investing

You can consider enlisting the services of investment advisers before investing and ask them certain questions

Plan for your retirement

Retirement planning is simply planning and preparing for a future lifestyle to meet your goals, and financial obligations independently when you are a pensioner and are no longer working.

Small and medium enterprises - Things to consider

Small and Medium entrepreneurs need to take the right financial decisions in order to maximise their investment and avoid any unnecessary loss.

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