Achieving financial independence is undoubtedly everyone’s ultimate goal in life. Preparing a retirement fund to become financially independent once we are old is crucial to have a bright and guaranteed future. A retirement fund is also important and helpful when we lost our fixed source of income every month, followed by some risks that can occur in the future. These risks can be reduced by having a retirement fund prepared as early as possible.
Qoala, an insurtech company put significance on retirement funds preparation. Calvin Teng, Country Manager of Qoala Malaysia shares that preparing a retirement fund is one of the essential obligations.
Of course, those who only have income from only one source must be wiser in managing their finances. This includes preparing to save for old age. Having a retirement fund is the same as preparing an emergency fund in old age.Calvin Teng, Country Manager Qoala Malaysia
Prepare Retirement Funds Wisely
According to Qoala, we do not have to spend a lot of money to prepare a retirement fund. If done consistently and continuously, we can set aside a little of our current income. So, what should we prepare?
5 Things Qoala Wants You To Pay Attention To
1. Determine retirement period
Determining when you want to retire is an essential benchmark in calculating retirement funds. Everything must be calculated carefully and you must have a particular financial strategy. The earlier the retirement fund is prepared, the easier it will be to collect the needed funds.
2. Find out & calculate needs in retirement
Needs cannot be predicted but can be comprehended by the plan calculations for each requirement. Like the daily or monthly needs in the present time, the retirement needs are certainly not much different. We still need some things, such as savings, house expenses, and paying for insurance. When calculating the cost of retirement needs, you can cross out some essentials that will no longer exist in old age, such as transportation costs to the office and so on.
3. Learn to prioritize needs
You have to separate needs and wants. For those who feel extravagant, you should try to discipline yourself. Make sure your expenses don’t exceed your income. How can we prioritize needs? Understand the difference between a need and a want. Needs are expenses that must exist to carry out daily life nicely, such as rent, food, etc. In contrast, wants are expenses that can make our lives more comfortable but less critical than needs.
4. Start saving by planning expenses in the present
Careful spending planning is one of the most helpful ways to save money. If you always spend according to your desire and lust, your finances will leak, so you don’t know where your money is going. For example, every time you go to the supermarket, write down the items you want to buy and shop accordingly. Once you start planning and tracking your expenses, you’ll see a significant difference and save money each month. You can allocate these reserve funds for your retirement fund.
5. Set aside income for asset insurance
Besides health, unexpected events in our assets are certain things we want to anticipate. These assets are certainly an essential part of our survival. If you don’t prepare yourself, the chances are that the retirement funds prepared will be used a lot beyond your calculations. Preparing insurance for assets owned is a solution in ensuring security and guaranteeing assets from all risks, one of which is vehicles. Having a vehicle, such as a car or a motorbike, is essential in carrying out daily life. When we retire later, we don’t want our money to run out because we have to pay for car casualties due to accidents, damage, or loss of cars. Therefore, we need asset protection such as car or motorcycle insurance.
Qoala, as an insurtech company, collaborates with more than 30 leading insurance companies to develop the best car or motorcycle insurance products. The company provides accessible policy submission services to help consumers choose and compare various insurance products. This helps to get the best choice at an affordable premium price and a fast registration and purchase process in minutes without the need for surveys. Consumers don’t need to worry about the claim process, everything can be done through the application, and the Qoala team will be ready to assist.
For more information, please visit the Qoala website.
Have you started to prepare your retirement funds?