Pots of Money

Going to any FRANK store, you see that there are four financial principles in life:

1. Saving
2. Investing
3. Insuring
4. Spending

Bank of England

Usually, we save before we spend, we save at least 10% of our income, and we maximise higher returns by looking at banks with higher interest rates. We also try to spend only the necessary, so we can eventually have more money for other uses.

Other uses may include insurance and investments.

Insurance protect our wealth. There are two types of insurance, namely: life and personal insurance.

For life insurance, we need coverage of 7 to 10 times of our monthly income, we need monies to cover our future hospitalisation and medical expenses that is an integrated healthcare plan and rider, we need a whole life or permanent disability insurance policy to cover our financial obligations when we are diagnosed with permanent disability. We may also need dependants' insurance, to cover our loved ones when we are not around.

Personal insurance covers travel insurance, home (housing loan and housing content) insurance and vehicle insurance.

As for investments, we multiply our wealth by two tools: fundamental analysis and technical analysis. Fundamental analysis looks at the intrinsic value of companies, while technical analysis looks at the direction of market prices and their effects on companies' stock performance.

May I humbly add something never mentioned in 'pots of money' -
5. Contributing.

What is the use of having so much wealth and protection when we are not relevant at all with our society? Our society has so much that we can improve on, especially with the widening rich-poor income gap, we need to do more to help the poor and helpless.