Daily Archives: December 21, 2016

Archive of posts published in the specified Day

Dec
21

Effective Financial Goal: The Five Characteristics

In financial management studies, an effective financial goal should have 5 characteristics which could be easily remembered as S-M-A-R-T. The following paragraphs explain all the 5 characteristics:

1) Specific

We might be thinking of being financially free but do you know what it takes? This goal is seems to be too general. Our goal needs to be specific so that we can focus particularly in each area of financial planning and easily to manage our own expectations. Specific goal normally has only one outcome.

For example, goal to invest RM200 per month in unit trust and accumulate at least RM2400 in a year; or spend within our budget every month. These specific goals are going to have different outcomes but when combined, they will ensure our cash flow to be healthy. When each specific goal is accomplished, we are getting nearer to financial freedom.

2) Measurable

We might be working very hard, but how do we know whether our goal is achieved? Therefore, our financial goals should be quantifiable.

For instances, we want to invest and accumulate RM50,000 in 2 years and the progress can be easily quantified by looking at our investment account statement.

In fact, we must be able to measure or review the progress of achieving the goal such as calculating our current net worth, debt-to-income ratio and reviewing, return-on-investment (ROI) and our current insurance policy. It is good if we can keep a journal and review our current planning.

3) Achievable

Many people are influenced by the ‘Law of Attraction’ and believe that ‘nothing is impossible’. Because of this, we’re tend to set difficult goals which require great effort. However, are these goals realistic and achievable? It’s important to know whether the goal is within our potential and logical norm.

For example, if your target is to achieve RM1 million in a year by only investing RM1000 per month in any scheme. How likely can these be achieved? In fact, such investment scheme will require very high ROI within a short duration and often comes with very high risk. You might lost your capital easily.

The most importantly, we should not stretch ourselves to achieve unrealistic goals. This is to avoid frustration over failure which could ended up in great disappointment.

4) Rewarding

We want to achieve a goal because want to get something in return or else nobody will work hard. While working towards goal achievement, we must be certain on the outcome to be achieved and it’s importance to our life. In fact, it must be meaningful and enjoyable.

For example, a man wants to invest his money to accumulate education fund for his son in 20 years. In the future, this goal will be rewarding because his son will be able to enroll into higher education.

However, the rewards could be in any form such as material, financial, relationship and spiritual.

5) Time-bounded

We need adequate time to achieve our goals. It could be short-term, medium-term or long-term, depending on the type of …

Dec
21

Getting Great Life Insurance Quotations Tips

When you are shopping around, and getting different life insurance quotes, you should know a few tips that can help you keep your premiums and total cost down. Below are some helpful tips you can use to make sure that you never pay more than you need to for insurance, and that you can get the best deal possible.

Go online to check out life insurance quotes. It truly is the most effective way to check out different costs and see what will work best for you. Instead of having to call various companies for a quote, you can simply log onto a website and check multiple companies with a single click.

If you are part of a couple, then getting joint insurance can really help to cut the costs of your premiums, because they will be spread across two people. The down side to this is that the policy will only pay out once. Therefore, if your partner dies, you will get the payout, but then you will need to get new life insurance for just yourself.

Always sign up with a reputable company which can pay out the life insurance quickly when you die. To check and see if a company is reputable or not, read some online reviews about their services.

Avoid any extras that the insurance companies will try to get you to add on to your policy. Stick with the basics, as most of the add ons are not needed anyways.

Finding the best life insurance quotes is not difficult if you follow the tips outlined above. This will help you do everything you can to keep your costs down when shopping around for insurance. Remember these tips, and you will certainly find a policy that is affordable for you and your family. …