Yes, you want to get rich and get crores of rupees in your bank account. Don’t we all want this? But all of this is meaningless unless you make sure you secure the basics.

Because the foundation matters else the building falls. Let’s understand and implement those.

1. Health Insurance

No one can predict your health. One sickness and your family would need to run to the hospital. Apart from the mental agony, your savings will deplete faster than you can imagine. A week in a hospital and you lose a lakh rupees.

Of course, you can go to a government hospital, but there will be huge lines, and you need to have one person to do the complete legwork.

Here, good health insurance coverage helps you. It makes sure that when you fall sick, your savings will be protected.

Else, what good is a crore rupees if it all goes poof in a medical emergency.

2. Emergency Fund

If you have a job, then you are getting a salary which is supporting your needs, wants and investment.

If you lose your job, your desires and investment can wait, but rent and food won’t wait. And god forbid it happens, you will be time crunched and under stress to get your next job asap.

But if you have an emergency fund savings of at least 6 months to 1 year of your basic needs covered, you will be relaxed. And when you are calm, you are more likely to ace your next interview.

No one wants to be in this situation, but given the changing times, you never know when your job security will be gone. It’s always better to be safe than sorry.

Along the same lines, you need to be upgrading your skills because if this situation arises, you will be up to date and be an asset for some other company.

3. Term Insurance

This is the insurance which pays your nominee for your death. Don’t confuse it with Life insurance which pays you regardless of your death. That’s a bad deal.

You need to secure your dependents life if you have some.

Buy the term insurance which has the cheapest premium if you buy it early. It’s a safety net for your family unlike the above two which are the safety net for yourself.

Conclusion

Personal finance has many tangents, from active income to passive income to wealth generation. But all of this is waste if your basics aren’t covered.

Many people ignore them and suffer when things go wrong.

Because it’s not a question of if, it’s a question of when. And if you are super lucky and none of the bad things happen to you, you will be calmer and stress-free with this product in place.

Now, if you haven’t got any of these in place, go and buy them and make your life relaxed.

And for your personal finance goals, keep following this blog ,and you will get updated guidance to become rich.