Solid Financial Foundation

Building a solid financial foundation is just like building a house. You build it from the ground up. 

First, you must have a proper healthcare coverage in the event of a serious health problem or sickness. Both of these can greatly affect or upset a person's financial stability, especially during old age. Statistics shows that 90% of personal bankruptcies are due to unexpected and unforeseen illnesses. Second, you must have proper protection in the event of your premature death. If this happens, then you have instant money to pay off any responsibilities and liabilities left behind.

 Third, manage and pay off all your bad debts. Fourth, provide for emergency fund; set aside 3 to 6 months of your income to deal with sudden changes in the job or business. This is also to pay for unforeseen accidents or repairs. Fifth, save and make long term investments. 

.A strong foundation will result to you having sturdier and resilient finances that can withstand any money-related storms, tornadoes and earthquakes. Following these five building blocks of a strong strong financial foundation will help build and secure your financial future.