COVID-19 is a Wake Up Call To My Finances

How are you doing people? I pray for your safety and protection amidst this COVID crisis.

I just want to share that because of the quarantine, it’s impossible to meet our clients face to face and it’s okay because we also value your health and safety. Thus, we are maximizing the social media platform to reach out to people.

I still want to give value and offer my services to people at times like this. A lot of things has happened. Businesses ceased their operation. Employees shifted to work from home arrangement. Some workers are currently struggling to earn on a daily basis. Our health got threatened by this virus. And most of us are not even financially and physically prepared for this. Because of that, It has been a burden on my part to continue my job and help people establish their cash reserves and safety net. This is the perfect time to educate people because we never know when would the next crisis hit us.

Let me share with you some of the bugging questions my clients have asked me due to our global crisis.

Can I build up my emergency fund or calamity fund at this state?

Part of our job is coaching people how to build up their emergency fund. Although we can no longer bring back the loss incurred today, the good news is we can start educating ourselves as to how we can prepare for the future. If your finances today are not that affected and you still have room to set aside money for future emergency situations, yes you still can. As long as you consistently set aside a portion of your salary in the coming months that would amount to 3-6 months worth of your income, you’ll have your emergency fund ready before 2020 ends. But if your finances are greatly affected by this crisis, I suggest when everything is back to normal, start building up your EF little by little and seriously. Crisis like this are inevitable so it is best that we are prepared just in case life happens to us.

I already have an insurance plan. Is it necessary for me to get another plan?

Whenever I ask people about their insurance, most of them are settled with one policy. This is a misconception for most policy-owners that I want to correct. When getting a policy you have to check first what is your recommended insurance coverage that matches with your current lifestyle and financial obligations. Does your policy have a health plan? So just in case another pandemic arises you’re fully covered. Is it flexible enough to be used for other milestones in life? Or will your coverage sustain your family in the long run? It’s good to have your initial insurance plan but I encourage you to review your policy with your advisor yearly or every 3 years because your life stage is constantly revolving and so are your needs. Ask your advisor about your coverage. Settling with one that doesn’t give you a full protection is like using a newspaper to cover your head during the rain. Don’t settle for a newspaper when you can avail an umbrella for yourself. Having a full-protection coverage can prevent you from suffering due to life crisis. If you cannot afford to get the full protection as of now, atleast gradually expand your investment for your future.

Why are people having a hard time prioritizing saving, investing and establishing their income protection fund?

Because this preparation is not presently tangible not until we face crisis. Most of us choose to prioritize what we think is just necessary as of the moment and fail to prepare for the unexpected situations of the future just like COVID-19. The bible says

”A prudent person foresees danger and takes precautions. The simpleton goes blindly on and suffers the consequences.” Proverbs 22:3 NLT

Insurance companies are birthed for this purpose and that is to help people lessen the risk of the future. We’re not anticipating, but just in case it happens we’re prepared. Sickness, disability, accident and death are few of those risks. And we want to help you and your family avoid that suffering due to financial loss.

Life insurance is not betting on the life of the person but it is a contingency plan which can save your family from an economic loss due to crisis. Does this make sense? It’s like having a spare tire on your car, so just in case your tires got flat along the way you’ll still be able to get to your destination. The purpose of contingency plan is risk management and same goes for any life insurance policies.

If you see this as value-adding learning for you and saw the urgency of preparing for your future as early as now, let’s talk more about it and I will share with you an action plan to help you get started right away. Keep posted on my blog. In the coming days, I’ll be discussing some basic principles on how you can manage your finances properly.

Learning session covers:

1. Budgeting your cashflow in a healthy way

2. Setting up your emergency fund

3. Explaining the financial planning pyramid (Wealth protection, accumulation and distibution)

4. The value of health and life insurance plans

5. Preparing for retirement

If you want me to personally help you get started, let me know so we can do a video call meeting. And we can set an appointment once this crisis is settled.

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