Building your own Financial Plan is like building a house. You start with the foundations.
3 steps to get you on your way to building the foundations of your financial plan are as follows:
- Build an emergency fund.
- Having money on hand for unexpected events is crucial. Having around 10 weeks of net income in an account should take care of all of life’s unexpected emergencies.
- Review your existing insurances. Do you have any?
- Check your Superannuation Fund for some cover 1*
- Protecting your income through an Income Protection policy is a way to ensure you are protecting yourself against an unexpected illness or accident. Most default Superannuation Funds offer an amount of Income Protection (Salary Continuance) to their members 2*.
- You will also be given a nominal amount of Life and TPD insurance cover within the Superannuation Fund.
- Start Investing your Surplus
Follow these three steps and you’ll have set the foundation for your Financial future.
By Chris Scriva
1*A nominal amount of cover that is selected by the Superannuation Fund trustee based on Age.
2*Traditionally the default Income Protection cover offered by a Superannuation Fund is a policy with a 90 day wait and a benefit period that lasts 2 years.