Financial Independence for You and Your Family

I have been working for more than 4 years and for most of it I wasn’t able to save as much as I can. I do not regret it though because I spent most of my hard earned money traveling as much as I can. I will likely continue traveling again once my little girl is big enough to travel with her dad and I. However, traveling will not take the front seat now, it will be limited now since my aim is to build our wealth. I do not aim for my little unit to be super rich. I just want us to have financial independence.

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I honestly don’t want to be stuck working on an 8-5 job for 20 years knowing that I can save and invest. I am no expert when it comes to finance but I want to learn as much as I can about it. So when I found out that I was pregnant I read as much as I can and below are my steps on gaining financial independence:

  1. Open a bank account
  2. Every pay day save first before spending (at least 20-30%)
  3. Get insurance
  4. Start investing in the stock market
  5. Open a Unit Investment Trust Fund

So far I have 1-4 done on my list after a year, but the road to choosing which insurance policy I will get and opening my account in COL Financial took me over 9 months (same as the length of my pregnancy).

For my insurance policy I considered many factors and ended up shortlisting two companies: PruLife UK and Sun Life. I then asked for quotations from both companies to compare the difference. Took me almost three months before I finally decided to go with Sun Life.

Perhaps you are wondering why I got an insurance plan first before investing in the stock market. It is pretty simple. I want to get protected first before I invest, meaning  should I get sick or die at least I will leave E and my little one something. Also, from my observations I realized that people often lose their money due to sudden sickness or death.

After getting an insurance plan my next step was to start investing in the stock market. I know that a lot of people are afraid of putting their money in the stock market, but see I used the term invest. Meaning I don’t plan to do active trading, I will invest my money there for a long time.

Investing in the stock market is easy, you just have to open an account in COL Financial and start buying stocks. It is the part of choosing which stocks to invest in that I encountered a bit of difficulty. I am not a risk taker so I need to know as much as I can before I invest my money.

Fortunately Brother Bo has the TRC or the Truly Rich Club! I signed up for it and it gives me the information that I need to know which stocks to buy. At long last I am not at a loss on which stocks to buy and when to sell it. Aside from this, I get daily messages which are very encouraging and enlightening!

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Now in my list, I still have unit investment trust funds. But I will revise that list putting my little one in as well:

  1. Open a bank account
  2. Every pay day save first before spending (at least 20-30%)
  3. Get insurance
  4. Start investing in the stock market
  5. Open bank account for Alex
  6. Open a Unit Investment Trust Fund – under Alex’s name

The goal is to open Alex’s bank account when I get back to the office and also link it to a UITF. This money will be used for her future (college funds).

I encourage all working moms out there to also strive for financial independence. Do it one step at a time and perhaps soon you can stay at home and let your money do the work for you. Just Save-Insure-Invest!

2 comments

  1. Ace says:

    I acknowledge that with interest rates being so low now it’s difficult to make money anywhere other than the stock market. Savings accounts are offering .001% annual rates, but at the same time stocks are an extremely risky investment especially if someone doesn’t have the money to have a diversified portfolio. I think because the market has been making record gains over the past year it appears to be a good time to invest but in 2008 the market lost almost half of its value. I think you have some great points in this article but investing in the stock market can be very costly even to someone who has a lot of experience and a lot of money. It’s definitely not something everyone should be involved in.

    • den says:

      Hi Ace! Agree with your points, that is why it is important to invest in blue chips and if individuals don’t have a high or mid risk appetite best is to consider mutual funds instead.

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