Should Millennials Insure or Invest First?

“Protect the goose that lays the golden egg.”

Insure or invest? Young adults making this decision are already on the right track of planning for their long-term financial wellbeing. I remember vividly when I got my first job; money was tight. On hindsight, I wish I had someone advising me what I am sharing with you now. Prioritise securing the right type and level of insurance coverage. Make sure you secure your vault first before you continue to save and grow your wealth.

Most of us earn a living by going to work. When an unforeseen mishap or critical illness prevents us from working, our earning capacity will be affected or completely stopped. Getting the right insurance safeguards our current wealth, standard of living and potential earnings. Unless you have an emergency fund to dip into, insurance minimises financial havoc. If you’re the lucky few with enough investments to fall back on, you may still suffer severe losses when forced to liquidate your assets in a hurry. You might also take a big hit when you terminate your investment plans prematurely to pay for medical expenses or other urgent needs.

Unlike insurance, investments play a different role by funding your future financial needs. They include long-term objectives such as retirement planning or saving for children’s education. However, always protect the goose that lays the golden egg first. Get your insurance portfolio done up well first. I have seen so many people go through so much pain, so I want to help you, and as many people as I can, avoid unnecessary hardship.

source