Life is a beautiful journey that passes through many milestones like Building a House, Buying a Car, Child admission to school of your choice, Career Coaching from best of the institutes like Akaash or Allen. Admission to UG course of their choice, MBA degree from a preferred institute, Desired Offer letter at the time of campus placement, planning their marriage, your own retirement etc. All these are very important as well as must to be met milestones.
In this journey forward, life offers just 3 situations and thats true for every rich or poor, businessman or professional. One needs to be prepared for all these 3 situations.
Situation 1
Happy Times – Living too long or Aysuhman Bhav is something everyone wants to listen and enjoy. Happy life is is all about passing through all above milestones by yourself, each milestone mentioned above involves finances (there is nothing that happens without money, from child play way school to post graduation, every class & every day needs lot of money. Today this becomes about half a crore but in coming years this would run into crores). Be it building a house or getting your daughter married you need lot of money. Given the inflation and deficit in what you need vs what you actually earn becomes a boiling point in life and it causes lot of stress. One needs to balance out the equation with adequate savings, non only savings but right kind of investments. As a bread earner of the family you should always be at ease of upcoming financial challenges and need to be better prepared to manage expanse for life goal. Best way is to take an expert advice to understand life goals and then plan for them with utmost perfection. When you live long and want to deliver your financial responsibilities with perfection, you certainly need Power of Compounding. Understand the fact that Mutual Fund SIP has the power to multiply your savings. Take expert advice to get ready for happy times ahead,
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Situation 2
Sad Times – Life is a risky affair, what ever profession you are in…you see around yourself everyday the kind of news that makes headlines, Accidents, Cancer, Blasts, Acts of Terrorism, now COVID 19…there are so many of life threating events that we notice around us, All these people who are affected of such events are one like us only who have their Financial Goals, their milestones ahead. Dying early is a very sad event for the entire family, everything comes at grinding halt. But as life comes back to normal there is a challenge that grapples the family…How will they achieve the coming Financial Milestones of life. One must be optimist in life, one must trust in god, one must work very hard but one must not make any compromise with an adequate Term Insurance Plan. Be bold but yet stay very emotional for close ones, its they who have to face the challenges after you are gone. When I say adequate Term Plan, be aware and make sure it should be min 10 times to your annual income. Say you make Rs. 75000/Month (9 Lakh/Year). You should have a Team Plan for min 90 Lakh to be precise more the batter. Never ever step out without a term plan. Insurance in any other form is just not good enough, all you deserve is a Term Plan. Take professional help to understand Human Life Value concept.
Situation 3
Medical Challenge – Kind of lifestyle we are used to live these days is a challenge within itself. Stress is taking a big toll on our health. We don’t realize but if you read any medical bulletin, you will discover that stress is a biggest reason for any health trouble in our lives, Our daily routines of rushing to work, taking stress, odd eating hours, working late hours actually add slow poison to our life that could be a reason to fall down to a critical illness like Cancer, Heart Disease, Liver Problem, Kidney failure or may be an accident that brings serious injury. Hospitals have become new hotels and cost of treatment is exorbitant and sometime out of reach as well. Its always advised to be well prepared for any kind of medical emergency in shape of a Family Floater Health Policy that covers entire family. Dont make the mistake for settling down with 3/5 Lakh cover, make sure you have min 25 Lakh (Base + Top Up) cover to meet an emergency that might strike without being informed.
Be well prepared with all three situations of life and where ever required take professional help to understand products that suit you the most.
(Kamal K Sharma – Co Founder at http://www.savefirst.co.in is an expert in Financial Matters with over 2 decades of experience at various levels. All views expressed herein are author’s own views)
