Wednesday 27 February 2013

Tips to Ensure Better Financial Security by Richard Cayne Meyer International Thailand

While financial security and planning are things that occupy most individuals’ minds these days, there are only a small percentage of people who actually take the right steps in order to secure the future of their loved ones as well as themselves. Richard Cayne of Meyer International Thailand offers the following checklist for individuals looking to secure the financial aspect of their future, so that they can efficiently manage their funds, while leaving enough room for contingencies.

    Emergency Fund - Richard Cayne of Meyer International Thailand opines that every individual must   have an emergency fund set aside at all times so that they can easily deal with life’s unexpected events. Allocating a part of your income on a monthly basis for an emergency fund can help you deal with situations such as an accident, car problems, loss of a job, etc. in a calmer manner, while avoiding a position wherein you would need to take a loan.
    Repay Your Debts – Next on the priority list according to Richard Cayne of Meyer International Thailand should be the repayment of your debts, besides mortgage. Working your way up from smaller debts or those with a higher rate of interest is an effective way to get rid of your obligations in a timely manner.

    Create a Buffer - Richard Cayne of Meyer International Thailand strongly suggests keeping a bank balance that covers at least three to six months of your living expenses. These could include rent or mortgage, monthly bills, gas expenditure, average food bills, etc. Ideally you should add up your monthly expenditure and multiply it by six to arrive at a figure.

    Investment – Once done with the above checks, Richard Cayne of Meyer International Thailand suggests it is time to start paying yourself or investing for your future. According to Richard Cayne of Meyer International Thailand, one should allocate 15% of their income in their 20s, while 40% should be the target for those in their 40s and older.

    Family – For those who have managed to tick the above items off their checklist, it is time to start concentrating on the needs of your family. Creating a college fund and paying off your mortgage should be high on your priority list now. The earlier you start, the better your chances of helping your family live a rewarding life. Richard Cayne of Meyer International Thailand adds that leaving your family with considerable wealth should also feature on your priority list. Appropriate tax planning and optimized wealth transfer solutions should be looked into along with suitable life insurance and other financial planning tools.

Richard Cayne is Managing Director of Meyer International which forms part of Asia Wealth Group Holdings Limited a London UK listed financial services holding company.