Part 5/9:

• Emergency Fund: Aim to save 6 to 9 months' worth of expenses. Such buffers provide peace of mind during job loss or unexpected bills and are crucial for resilience.

• Debt Management: Control debt levels by monitoring ratios such as:

• Total Debt Servicing Ratio: Keep below 35%

• Non-Mortgage Debt Ratio: Keep below 15%

Proper debt management helps prevent financial leakage that could derail long-term goals.

Protecting Your Financial Future: Insurance and Risk Management

Life is unpredictable, so maintaining adequate insurance coverage is essential. While it may seem less exciting than investments, protection is foundational:

• For death coverage, aim for 9 to 10 times your annual income.