Mitigating your risks is the best way of cushioning yourself from the unpredictability of life. After establishing your financial goals are advised to realize that not everything will go as planned. Life is full of uncertainty and managing risk is key to ensure you are covered in case of loss of income.
Start saving early enough for an emergency fund so that in case you become physically or fired in the workplace you have a plan to fall back as you look for other ways to earn a living. You can easily get more information about financial independence at This Tiny Life.
In the case of a physical disability, it is always wise to have an insurance policy to cover you. It is even more important if you have a family and you are the breadwinner.
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Ask yourself if you know your net worth today. Your net worth is the difference between all the assets or investments such as your home, business, cash in hand and obligations as the money you owe other people or financial institutions (loans, credit cards).
You can have or make a lot of money but your net worth lower because of the debt that you have. Therefore, as you fancy living to remember to calculate your net worth, and if you find that you are cash-rich and poor asset quick makeup financial plan for change.
Constantly, do everything you can to ensure that you strive towards an asset-based rather than just being cash-rich. To increase your net worth and thus achieve financial independence, you are prompted to save more, invest like in real estate and make an effort to pay off your debts. The power to generate wealth is in your hands.