Financial Success Guide
Guide

6-Step Financial Success Guide

6 Modules 30 Sections Easy

About this Guide

Factors To Consider Before Investing

There are several factors you have to consider before investing any of your hard-earned money. 

These 10 factors are:

  1. Emergency Fund -  Do you have an emergency fund equal to 3-6 months (ideally 6 months) income put aside in a savings account for emergencies?
  2. Regular Vs One-time Investments -  Consider whether you want to invest on a regular or one-time basis. Investment options vary significantly based on your preferred mode of investing.
  3. Your Budget -  How much money do you have to invest, over and above your emergency fund? Starting is easy, continuing is difficult. Always choose an amount that would be consistently affordable over the investment period.
  4. Investment Horizon -  Consider when do you need your money back. For example, if you are saving and investing for your child’s education, you need the money when they are 18. If you have 10 years left before they turn 18, you have to select an investment, that returns your money in 10 years.
  5. Capital Growth or Income -  Consider whether you are aiming for capital growth or a steady income from your investment. For example, you may need income during your retirement years, and capital growth when you are younger, or for milestone goals such as ‘Saving for your child’s college fees’, or ‘Buying a Home’, etc…
  6. Investment Portfolio -  Consider what other investments you have done as well, because no investment is done in isolation. If you want to achieve protect your money through proper diversification, you need to consider how this investments fits within your existing investment portfolio.
  7. Investment Type -  Consider what type of investment you are looking for. Sometimes you may want an investment that is capital and/or returns guaranteed, for example with milestone goals such as ‘Saving for child’s college fees’, or for ‘Buying a home’. Other times, you may want a market-linked investment that gives you maximum returns on your investment.
  8. Your Risk Appetite -  Some people are natural risk takers regardless of their age or investment experience. Others cannot tolerate too much investment risk or possibilities of losing money. The investment you select has to match your attitude towards risk.
  9. Understanding of Investment  - You should understand the way an investment works, at least the concept of the investment, not necessarily the minute details. If you don’t understand it at all, you may want to select something that you understand. The main factors of an investment that you should understand are: 
    1. The structure, 
    2. The charges, and
    3. How the investment returns are derived.
  10. Financial Advisor -  Are you using a financial advisor to begin with?
    1. Importance of Financial Advice -  Most of the time, a properly qualified and experienced financial advisor can clarify your understanding of the investment you are aiming to go for, and help you reduce the risk involved in investing.
    2. Salesperson or Independent Financial Advisor -  It is always in your best interest to select a financial advisor that represents you, not the investment provider or bank. This is because financial advisors who represent only one or two providers have to push their product to you, even if it may not suit your goal.An independent financial adviser who represents you will look out for your best interests so you can refer him/her more clients.
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Index

5 Sections

Step 1 – Understand The Basics

Understand The Basics Of Personal Financial Planning, & The Principles Of ‘How To Make Your Money Work For You’.

Introduction

Introduction to 'Understanding the basics'.

Rich or Wealthy? What would like to be?

Understand the difference between 'Being rich', and 'Being Wealthy'.

3 Real Life Stories

3 Real Life Stories Of People I Met, & How They Handle Their Finances.

Overview Of The Process

Overview Of The Process Of Financial Success

Value Of Independent Financial Advice

Understand The Value Of Independent Financial Advice.

2 Sections

Step 2 – Assess Your Current Financial Situation

Learn How To Assess Your Current Financial Situation, So You Will Know What Progress You Are Making.

Why you should assess your current situation

Understand Why You Should Assess Your Current Situation

How To Create Your Personal Balance Sheet

Find Out How To Create Your Personal Balance Sheet

3 Sections

Step 3 – Get Rid Of Bad Debt

Understand The Difference Between Good & Bad Debt, Learn How To Get Rid Of Bad Debt Quickly.

What is Good Debt, and Bad Debt?

Understand The Difference Between Good & Bad Debt

How To Get Rid Of Bad Debt Through Debt Consolidation

Learn How To Get Rid Of Bad Debt Through Debt Consolidation

How To Get Rid Of Bad Debt Using Debt Stacking

Learn How To Get Rid Of Bad Debt Using Debt Stacking

3 Sections

Step 4 – Protect Your Income

Understand What Can Stop You From Earning Money, & Learn How & Why You Should Protect Your Income Today.

Importance Of Protecting Your Income

Understand The Importance Of Protecting Your Income

Why You Should Protect Your Income Today, Not Later

Understand Why You Should Protect Your Income Today, Not Later

Two Ways To Protect Your Income

Learn About The Two Ways To Protect Your Income

4 Sections

Step 5 – Start Saving For Your Goals Today

Understand What Can Stop You From Earning Money, & Learn How & Why You Should Protect Your Income Today.

3 Reasons To Start Saving Early

Learn About The 3 Reasons To Start Saving Early

How To Set A Savings Budget & Pay Yourself First

Learn How To Set A Savings Budget & Pay Yourself First

Saving Money In The Bank Vs A Regular Savings Plan

Learn About The Difference In Saving Money In The Bank Vs A Regular Savings Plan

How To Select The Right Savings Plan

Learn How To Select The Right Savings Plan

13 Sections

Step 6 – Invest To Create Another Income

Understand What Can Stop You From Earning Money, & Learn How & Why You Should Protect Your Income Today.

Introduction To The Concept Of Investing

Understand The Concept Of Investing

3 Reasons To Start Investing Today

Learn About The Reasons To Invest

Securities Vs Traditional Investments

Securities Vs Traditional Investments

Understanding Investment Risk

Understanding Investment Risk

Factors To Consider Before Investing

Factors To Consider Before Investing

What are Fixed Deposits?

Learn About Fixed Deposits

What are Government Bonds?

Learn About Government Bonds

What are Corporate Bonds?

Learn About Corporate Bonds

What is Real Estate?

Learn About Real Estate

What are Commodities?

Learn About Commodities

What are ETFs, and Index Funds?

Learn About ETFs, and Index Funds?

What are Mutual Funds?

Learn About Mutual Funds

What are Stocks?

Learn About Stocks & How They Work.

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