Quora Answer: How Do I Improve My Personal Finance as a 27-Year-Old?

The following is my answer to a Quora question: “I am 27 years old now; how do I improve my personal finances?”

Have a habit of trying to put aside 20% of what you earn less your expenses.  Although it will be challenging, cultivate this habit of saving.  Visualise where you see yourself in a decade or so, and how much you believe you need to get there.  Saving is also about saving smart.  Do some research, and put aside funds in lower risk financial instruments such a mutual funds, the money market, and even investment-linked insurance plans.  Finally, financial security is also about liability protection.  The more you are worth, the more you have to lose.  Look into getting good insurance coverage, beginning with a hospitalisation plan, and then adding to it with whole life coverage that includes payouts for disability and critical illness.  As your net worth grows, add to the latter.