Financial security is an important goal shared that everyone wants yet few are on the right path to realizing their goals. According to Richard Cayne of Thailand’s leading financial consultancy Meyer International Ltd, while most individuals would love to attain complete financial security, many of them do not believe it to be possible. However, Richard Cayne of Thailand explains that a few simple and strategic steps can help just about anyone to attain a state of complete financial security of which the top three are being discussed below.
According to Richard Cayne of Thailand’s leading financial consultancy Meyer International Ltd, the first and foremost tip to achieve financial security is to always have an emergency fund going. Whether your earnings fall in the category of modest or obscene, an emergency fund is one of the best gifts you can give yourself and your family, so that dealing with small roadblocks such as car problems to more serious matters such as the loss of a job do not cause much distress to your physical or financial health. Richard Cayne of Thailand further adds that to be able to avoid panic during a financial emergency is the best way to help maintain your financial health, since such emergencies usually affect individuals at least once in their lifetime, if not more, and need to be dealt with immediately. Once you have a sizeable emergency fund going, it is also recommended to go ahead and maintain a balance that allows you to cover 3-6 months worth of expenses.
The second most effective tip for attaining financial security according to Richard Cayne of Thailand is to start with the repayment of debts. Richard Cayne of Thailand advises that excluding mortgages ( depending on the rate of interest ) repayment of debts at this time is a prudent step, since those generally require more time to pay off and tackling them straight away would be advised. He further adds that listing and repaying your debts according to size and interest rates is of utmost importance, since that is what will determine their order of repayment. Starting with those with the maximum interest rates is recommended.
The final tip on the list according to Richard Cayne of Thailand is to invest 15-40% of your income depending upon your age. While those in their 20s should look at saving 15% of their income, those in their early 50s or late 40s should aim at 40%. Saving and then investing a part of your income will not only allow you to enjoy a stress-free retirement, but if started early can help you build a considerable wealth for your future.
