Staying healthy financially

FINANCIAL PRUDENCE KEY TO HAPPY LIFE

Simple tips on having a healthy financial life by Datuk Dr. Elamaran Sabapathy

Take charge of your finances. Financial health is equally important as your physical health. Don’t wait for a crisis or major life event to get your act together. 

Don’t buy consumer items (cars, clothing, vacations, and so on) that lose value over time on credit. Use debt only to make investments in things that gain value, such as real estate or art/antique investments.

Use credit cards only for convenience, not for carrying debt.

Live within your means and don’t try to keep up with your co-workers, neighbors, and peers. 

Save and invest at least 5-10% of your monthly income. 

Research before you buy. Never purchase a financial product or service on the basis of an advertisement or salesperson’s solicitation and avoid financial products that carry high commissions and expenses.

Don’t purchase any financial product that you don’t understand. 

Avoid making emotionally based financial decisions. 

Make investment decisions based on your needs and the long-term fundamentals of what you’re buying.

Own a property based on your affordability.

Prepare for life changes. The better you are at living within your means and anticipating life changes, the better off you will be financially and emotionally.

Prioritize your financial goals and start working toward them. Be patient. Focus on your accomplishments and learn from your mistakes.

Don’t gamble, avoid casinos and don't get involved in get rich quick scheme.