Hi, fellow hivers, I feel so glad to share with you my reflections and learnings on what building a strong financial foundation. Firstly, financial foundation may be, constituting the central part of the financial life that you planned to live. This central part includes an attitudinal exhibition of financial philosophy in your life.
Financial foundation needs strong, genuine building materials like every other strong structure that exists and built with durable materials. Without the right attitude, which is the base of the foundation, you may not likely meet your financial obligations.
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Many people have struggled financially without being able to meet their minimum and basic financial needs. Most of the time, family unit income is affected by poor planning, others have been found to live on recurring debt which has impacted negatively on some people’s health including mental stability.
Although, stable income, personal home or comfortable rented apartment are probably superb achievements, but these may not be able to give you and your family the needed adequate financial security. So, one may need to consider other units and bits that can be mixed to build a strong financial foundation.
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A well thought out plan on how to spend your money. This well thought plan will help you to know well ahead and to focus on what to do, when to do it and the amount of money required to do it.
Having a well thought plan, you need to have a reserve for unforeseen expenses and common among the unforeseen expenses are home, car maintenances and other bills such as medicals and probably loss of jobs or businesses which are integral parts of income.
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Another bit of a strong financial foundation is your savings which could be deposits, pension, other form of investments and your cash flow. Bits such as making a strong and virile verifications on to what to invest on should inform your decision before your decisions to invest on things like government or company’s bond based on your prevalent financial situation and age may also play a significant role while building a strong financial foundation that can withstand the test of time, weather irrespective of any financial adverse economic conditions.
