Arranging Your Financial Priorities


Financial security begins with the right priorities.  How do we structure our finances?  

To better understand and visualize this, consider the diagram below. Each of your financial plans, investments and policies can be considered as building blocks. Together, they form your financial structure. The arrangement of the individual blocks will determine the soundness of your overall plan. 

The first tier or level of your overall plan is the Protection Level. These are plans and policies that are conservative in nature or pays off in case of accident, injury or death. This is the solid foundation upon which all the other blocks are built on, and must be given first priority.
All the other blocks above this are for accumulation. These are to be secondary in priority because of their riskier nature or their slow growth. All the other blocks going up the financial structure must progressively be given lesser priority due to the same.
This is the proper arrangement of priorities to achieve financial security and peace of mind.  If we disregard the base or omit several of the blocks, one accident will be enough to financially destroy us.  Greed prompts some to give more priority to the upper blocks, inverting the structure and just hope things will never go wrong the entire life.