Now
days, the whole world is in a big chaos. It has happened in the past, too.
world's economy has been shacked, a big time. as the whole world is going out
of money, everyone is also worried about their financial health, but the
question is how someone can be financial healthy...?? a lot of people don't
understand that what the financial health is? even if someone asks them about
the financial security, future security... no one cares or even listen the
experts. Everyone, by them-self is acting smart enough to take care
of their finances, people think that they know all about the money. But believe
me, people don’t know what they don’t know. People plan their future vacations
but they never plan their financial future, because of this 90% of population
lives average or below and after retirement 90% of the population becomes
financially broke.
Financial
security is a planning to save some money or plant their money in a way so that
in rainy days they can have a shelter to go under. In simple words, it’s a process,
a plan to save some money for the future so that they can use that money to
cover unforeseen expenses or in case of any emergency. If they never face any emergency
in their life, they can retire early to enjoy the life they worked for.
There
are different legal ways to save money, in every corner of the world. But only
a few knows about them and for most of the population, those never exist. The tragedy
with the people is that they never listen the experts, they just seek advice
from their relatives, friends or co-workers. Believe me, to be financial
secure, someone must listen the experts, the people who deals with the legal
ways to save money and who are called ‘Financial advisors’. As someone needs
a doctor to cure the physical illness, in similar manner they need ‘financial
doctor’ to cure the financial in-security, poverty.
Here
are some ways to be financial secure:
1. Personal insurances:
·
Life insurance: This tool helps your spouse, your dependent kids
or even your parents when you will be not there to take care of them, to help
your family to pay of loans and debts like mortgage, auto loans, education
loans for kids etc. so that they can have the life you dreamed for them.
·
Disability insurance: With this powerful tool, someone can protect his or her
income in case of any disability. This plan gives you a monthly income
(according to your plan) so that you can cover your expenses and help your
family to live financial worry free.
·
Critical illness insurance: C.I. is a recommended and very useful
tool to cover someone’s income and family expenses in case of any life threatening
illness. With this tool someone can have a lump-sum payment (according to the
plan chosen by individuals) in case of a life threatening disease like cancer,
heart attack etc.
·
Health insurance: there are some other health insurances with
which you can cover your prescribed drugs, medical equipment, dental treatment costs
etc.
2. RRSP: Registered Retirement
Savings Plan (RRSP) helps you to maintain life style that you have today. When you
can’t work like you can today, RRSP will play its role to help you on your
terms.
3. RESP: Registered Education
Savings Plan (RESP) is a tool to save money for the education of your kids. With
this tool you can contribute a portion of your income to save for the future of
your kids and on top of that you can have Government portion as an education
grant. As we know education costs more every day, you must have some plan for
the future of your kids.
4. RDSP: Registered Disability
Savings Plan (RDSP) is a very powerful tool to secure the future of a
physically disabled person. Someone can use this tool to save a portion of his
or her money if they have any child with any physical challenge. If someone
wants to contribute in this plan, government also contributes to help the
family and disabled person.
5. TFSA: Tax Free Savings
Account (TFSA) is a very useful tool to save and grow your money Tax free.
Why someone needs financial security: here are a number of
reasons that why someone must have their financial security:
- ·
To
protect their family from unforeseen expenses.
- ·
To
help their family after them.
- ·
To
help their kids to have desired education.
- ·
To
cover last expenses.
- ·
To
live the life someone is living today while working 40 or more hours a week.
- ·
To
protect family income in case of any disability.
- ·
To
protect family income in case of any critical illness.
- ·
To
cover medical expenses which are not covered by government plans.
- ·
To
save some money for any disabled person in family.
- ·
To
let your money work for you.
- ·
To
grow your money tax free.
I want to
conclude with this that for someone, family is the most valuable and precious and
someone works his or her whole life to protect his or her family, to let their kids
educate and for the sake of family’s future, everyone need a future planning and
financial security.
--S.Gill