How to Manage Your Financial Risk?

28 Apr 2017

manage, financial, risk, investment, future, retirement

If you expect to achieve something you need to make an effort think how to manage risk. Unexpected thing happen and there can be expensive. So many options that you can start when it comes to making investments. But the sooner start, the better returns you will obtain in the future.

Plan for the future

We never know what future hold but it’s best to prepared. The best way is to start saving early for retirement when you’re still young. Learning how to properly manage your finances takes time. If you educate yourself well then you can start to makes smarter money decisions and become and expert at having your back covered in case something emergency or unexpected comes your way.

Have Proper Insurance

Going without insurance is risky, to say the least. And yet, many people decide not to take out any insurance coverage despite the rising of medical cost will contribute towards financial risk. For example, fall sick or accident can happen anytime and anywhere. Just because the unexpected can happen. It doesn’t mean you have to be unprepared.

Build an emergency fund

Having an emergency fund ensures that you won’t resort to credit to pay for unexpected expenses. Ideally, the fund should cover your living expenses for at least six months. However, that sum can seem overwhelming, so start small. Setting aside only small amount like RM50 or RM100 every month is a good goal in the beginning.

The simplest way to build an emergency fund is to start working with a budget. Tracking all your expenses may seem like an exhausting and hardest task at first, but eventually you will be getting used to it.  

Photo Source:  

No comments:

Post a Comment