When I first started working my boss advised me to buy personal life insurance. He said it is the first thing you need to invest even if your company is covering you with health insurance. Nowadays medical, surgical and hospitalisation fees is sky high.

If you have somemore extra money, he said you should invest in fixed deposits and if you have somemore extra money, trust funds. I know today the fixed deposits rate is pathetic but it will be handy in the event of emergency.

The last investment should be shares. He advised that never take money out from your insurance, FD, EPF or trust funds to invest in shares. You only invest in shares if you really can take the risks and have extra money.