^{Equality through Financial Inclusion} Financial planning for a stress-free future

Steps to proactive financial planning

1. Document all assets
   • Knowing what you own is the first step in effective financial management.
   • List all your assets, including properties, investments, savings, and valuable possessions.
   • Keep this information organized and update it regularly.
   
   
2. Establish a will
   • A will ensures that your assets are distributed according to your wishes and helps prevent legal complications for your family.
   • Consult a legal advisor to draft your will.
   • Clearly outline how you want your assets to be distributed.
   • Regularly update your will to reflect any changes in your assets or intentions.
   
   
3. Create an emergency fund
   • An emergency fund acts as a financial cushion for unexpected expenses such as medical emergencies or job loss.
   • Aim to save at least 10% of your monthly income towards emergency fund.

   Example: If your monthly income includes AED 3,000 from aid, AED 10,000 from investments, and AED 15,000 from salary, your monthly savings should be:

   • Aid: AED 300
   • Investments: AED 1,000
   • Salary: AED 1,500

Example scenario

Imagine you are a resident in Abu Dhabi with a stable job and diverse investments. Here's how you can apply these steps:

• Document Assets: List your apartment, stocks, savings accounts, and any valuable items like jewelry.
• Create an Emergency Fund: If your total monthly income is AED 28,000, you should aim to save AED 2,800 monthly towards your emergency fund.
• Establish a Will: Work with a legal advisor to outline who will inherit your apartment, savings, and investments.

Preemptive financial planning is essential for ensuring a stress-free future. By documenting your assets, building an emergency fund, and establishing a will, you can prepare for unforeseen events and secure your financial well-being for you and your family.