Saturday, May 14, 2011

No one is indispensable!

Last week in the “Great Event” in Singapore, it has proven again that no one is indispensable. No matter how high are your position, how much experience you have and how much effort you put in, you may just lose your post due to some reason. Well, it is quite sad to know that is the truth in today society. So what can one do to protect oneself financially before the day really come?

Have zero or minimum reliabilities.
As you probably know that reliabilities are the thing that constantly take money from you. An example for reliability is buying a car just to drive to your work place and does nothing else. Having too much reliability will definitely add up to your financial burden. As for me, I have achieved to have zero reliability.

Commit only when you can afford.
Make sure that you only commit when you can afford. For example, buying a big house which stretches your financial boundary is not a wise thing to do. As for me, I can only afford a 4 room flat and will not be planning to do any upgrading at the moment.

Multiple income streams instead of just one.
Well this is one of the best protection again any income loss. Focusing on just one income stream is very risky. It is because once you lose it, you will not have any other income streams to support your living. As for me, I am having a main active income stream and 3 passive income streams.

Take good care of your health and have enough insurance coverage.
Make sure anything that you do will not affect your health. It is because once your health is lost, you are prepared to pay for huge amount of medical expenses and you may not be able to work again. And also, make sure your family and yourself have enough insurance coverage to provide all the protection you need. Currently I am spending about $500 per month on insurance to ensure that.

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