Expert's advice: Cold weather is increasing, do not take medicine indiscriminately if you have a cold As the country, including Kathmandu, has started to experience extreme cold, experts have suggested not to buy medicine if you have a cold this season. Children and senior citizens especially need more care during the winter season. Experts have urged people to take necessary precautions, saying that children are more likely to suffer from respiratory problems, colds, throat infections, stomach aches, etc. during the winter season. Pediatrician Dr. Ramhari Chapagain of Kanti Children's Hospital says that respiratory problems, pneumonia, and 'cold diarrhea' (cold-related diarrhea) are more common during the winter. 'Nutritious food is needed to protect children from colds. Although children need nutritious food at any time, they need it more during winter than at other times. It helps in digesting common diseases,' he said. He also said that all the vaccines pro...
What is the primary goal of personal finance? What are the 4 pillars of wealth?
### **The Primary Goal of Personal Finance**
The primary goal of personal finance is **achieving financial security and freedom**. This includes effectively managing money to meet current needs, prepare for future goals, and safeguard against financial risks. It ensures a balance between saving, spending, investing, and protecting resources.
Key objectives within this overarching goal include:
1. **Building Wealth**: Accumulating financial assets for long-term goals such as retirement, homeownership, or education.
2. **Managing Risks**: Using tools like insurance and emergency funds to mitigate financial uncertainties.
3. **Achieving Financial Freedom**: Having sufficient resources to make life decisions without being constrained by financial limitations.
4. **Reducing Stress**: Establishing a clear plan to handle debts, expenses, and savings minimizes financial anxiety.
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### **The 4 Pillars of Wealth**
The **4 pillars of wealth** represent fundamental principles for building and maintaining financial success over time:
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#### **1. Earning**
- **Foundation of Wealth**: Generating income is the starting point for building wealth. This includes active income from work and passive income from investments.
- Focus on increasing earning potential through education, skill-building, and leveraging opportunities.
- Diversify income streams to reduce dependency on a single source.
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#### **2. Saving**
- **Preservation of Wealth**: Saving ensures that you retain a portion of your earnings for future needs.
- Build an emergency fund to cover 3–6 months of living expenses.
- Automate savings to create consistency and resist the temptation to overspend.
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#### **3. Investing**
- **Growth of Wealth**: Investing allows your money to work for you and grow over time.
- Utilize diversified investment strategies, balancing risk and reward.
- Start early to leverage the power of compound interest.
- Invest in assets like stocks, real estate, and businesses to multiply wealth.
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#### **4. Protecting**
- **Safeguarding Wealth**: Protecting wealth ensures that your financial progress is not derailed by unforeseen events.
- Use insurance (health, life, disability, property) to mitigate risks.
- Have an estate plan or will to secure your wealth for future generations.
- Regularly review financial plans to ensure ongoing protection against evolving risks.
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### **Conclusion**
The **primary goal of personal finance** is achieving financial security and freedom, while the **4 pillars of wealth**—earning, saving, investing, and protecting—are the strategies that help build and sustain financial success. Together, these concepts empower individuals to lead a stable and prosperous financial life.
Which pillar of wealth will you focus on strengthening today?
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