Hi everyone. I’m a newbie here. Having insurance is important, what kind of advice do you give to someone who is financially strapped most of the time and can’t afford insurance plans for himself?

How about a term plan with just a couple of dozen dollars for a start?

Hi Anon,

I think before looking at insurance, you might want to see where your finances are going. Are there anything that you might be over-committing? Or you have more important obligations at this point? These are some crucial factors that you might want to look through first.

Cash Flow

Firstly, we need to have a complete understanding on our cashflow. Through this process, we will understand our earning ability and spending habit.

Here is a Guide:

Understanding Your Personal Cash Flow

Thereupon, we will be able to have a clear understanding on your financial situation - how to increase income, or reduce expenditure, or both.

Budget

Next, create a budget that is capable of helping you to plan for the future. The best way to do this is via automation.

How I do My Budget:

How to create a Monthly Budget

For the most part, any amount helps - even a dollar a day. In truth, we are looking at how disciplined you are to create a positive change for your future.

Planning

Meanwhile, start to plan ahead and to know what are your immediate priorities in life, e.g. stability at work. In addition, start learning about the type of insurance that you need. Once you are ready, we know what to get; rather than to waste more time going through the process again.

I share quality content on estate planning and financial planning here.

Take care of your health, don't take unnecessary risks, and set yourself a target of making $1k additional every month from now on.
The easiest way to start is to looking around your house for things that you can re-sell, offer services to other people at a low-rate to build your reputation (help to mop/clean the house, help people move their furniture etc), or to offer some kind of service that leverages on your existing skillset (photography, drawing, tuition etc).

Once you start making some additional income, consider buying a Term Plan to insure against death and TPD, get your medical plan sorted out. These two shouldn't cost you more than $100 per month.