Build A Strong Financial House

Now you have the money!

Because you did the Money Jars method and proved to yourself that it works.

Wait, what Money Jars? You can read about it here.

If it didn’t work, go back to the basics.

Start again.

Start small.

Start simple.

Build your funds, again.

Then go back to this page.

Now you have the money! What to do next?

Build a strong financial house.

How is a house built?

First you think about what house you would like to build. You imagine the outcome–the finished building.

jul 7 - beauty tropical house
Image from http://www.weberdesigngroup.com/

You think of a design, you create a blueprint, you hire an architect, a civil engineer, a contractor, etc.

In other words, you look for people who know how to make the house in your mind a reality.

Now comes the work.

We know that to build a strong house, we first focus on its foundation. We build on a rock. We build on solid ground.

This is important so that when natural calamities come, your house will not come crashing down.

Next, we start putting up its walls.

Then lastly, we build the roof.

We focus the strength of the house from the ground up–the foundation is the strongest part of the house.

Similarly, we can liken our financial life to building a house.

jul 7 - financial house
Image borrowed from Sun Life Financial.

First we need to know the outcome–what financial goals do we want to achieve in this lifetime?

We think. We plan. We write down a roadmap. We write down a target.

Then we start building towards these targets.

It will take time. It will take diligence.

How do we build a strong financial house?

  • Know first what you want to achieve and set a deadline (have a target).
  • Consult with people whom you think can advise you to achieve your financial goals (you might need to educate yourself in the process).
  • Strengthen the foundation first: Insurance
    • build on protecting your income
    • reduce or eliminate bad debts
    • put up an emergency fund
    • put up a health insurance
    • protect your other investments
  • Then put up the walls: Investments
    • start investing in mutual funds
    • invest in the stock market
    • invest in real estate
  • Lastly, secure the roof: Estate Planning and Leaving a Legacy
    • retire happy and comfortably
    • prepare on leaving a legacy
    • plan the succession of your estate and/or businesses
    • mentor the younger generation

Where are you now in building your financial house?

Which part of your house should you strengthen?

Read Previous: The Money Jars

Read next: Protect Your Assets

To be updated of the latest blog posts, please like us on Facebook and put a check on “Get Notifications”.  Click on the picture below.

Check to be notified

Did you find this article or tutorial helpful? Let us know below :)

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s