It is always ideal and essential that before you move on with any of your investment plan and bid ambitious money-making idea, try make sure that you have had your back covered.

Do not regard this as an unwelcome distractions or delay to your planning, in fact, this should be dealt with as the first step to any other dreams that followed.

Despite the well accepted fact that everybody’s circumstances are uniquely different from one another, but in general, each of us should do the following:

  • Establish an emergency fund
  • Ensure sufficient insurance coverage is in place for your dependents in the event of death or at the onset of critical illness.
  • Ensure you and your partner have wills on how your estate should be distributed in event of death.

Emergency Fund

Set aside or follow a disciplined effort to built up an emergency fund that is sufficient to cover at least 6 months of your income, so that you will not feel nervous or helpless during sickness, retrenchment, or when looking out for new job after resigning. This emergency fund should be kept in deposit or money market account which will give ease of liquidity when it is needed. With an adequate emergency fund backing up, things could not go too wrong as you have buffer to support you through the rough tide.

Insurance Coverage
Just sit down and imagine that you have stop breathing yesterday. How much is needed to settle your debt today, eg. mortgage, credit card, PTPTN, Hire-Purchase, etc. How will your dependent continue to survive without much challenge and hurdle financially especially if you are the breadwinner in the family or the person who bring home a big portion of the household income is you? If you were to become ill long term, how much of your current income or savings can continue to support you and family, for how long? Just ensure that, if at all possible, you will have at least this amount of life insurance coverage in place. Also, ensure that you have a basic medical insurance in place, so that your emergency fund and hard-earned savings will not be wiped out overnight by hefty hospital bill.

You may seek the help of licensed financial advisor to have a personalized insurance solution for you, as they will be able to integrate plans from different companies to cater to your unique need.


A will is a legal document which sets out who is to benefit from your property and possessions (your estate) after your death. There are a number of ways of making a will but, to be on the safe side, it is advised that you ask a licensed financial advisor on how your wills should be drafted in order to cater to your unique situation and wishes.

It is important to have a Will in place as if you were to die ‘intestate’ (ie without having made a will), there is a danger that your assets
will not end up in the hands of those that you would have wished to have them, not to mention that it will take relatively longer time for the court to issue clearance order.

Depending on your circumstances, you may wish to include guardianship arrangements in your will so that, in the event that your children are left parentless, there will be someone to take care of them: you obviously need to get the agreement of the people you intend to name as guardian(s) beforehand.

This may conflict with your priority of achieving your goals but, by building up this financial cushion (and maintaining it), you will protect yourself in the event of things going wrong and in a better position to work out alternatives, and you will be able to focus on the next step with peace of mind.