You certainly know that every human being has needs. Needs of adults will always increase over time. Of the need to get married, buy a house and vehicle, having and raising children, to enjoy a happy retirement.
However, to be able to meet all those needs, of course, funding is needed not less. eadaan it certainly raises the question for you, how I can fulfill all these needs? The answer is to do financial planning as early as possible, and have fun later.
5 Steps To Have Happy Later!
Financial planning is a process of managing finances in a discipline, to achieve your desired goals. For that, there are 5 steps you should do:
1. Check your financial health
Not only your physical health is important, but the health of your financial situation could not be ignored. Actually, the latter case this should be your first priority before physical health, for maintaining a healthy body also requires funding.
Do not worry if you do not have savings after paying off all debts, because even if you do not have any savings, you are going to do something much better for yourself.
2. Dream on!
The second step is to plan your needs. This step is done with dreaming. Yes, you are not wrong to dream! Ask in your heart, what you want in life. The house in the elite? Jaguar Cars? Five-star apartment? Beat the socialite to have a number of shoes, clothes and bags? or even a honeymoon to Paris?
Well, if it is, wake up from your dream to see if all your dreams are in accordance with the conditions of wealth and income? If not, start dreaming again. However, this time with a more realistic dream. Do not forget to prioritize and determine what you get first.
One thing to remember, in addition to the fun stuff before, enter the priority you need an emergency fund. Emergency fund? What is that? Emergency fund is a fund for the purposes of the appearance you do not expect, such as the cost of inpatient care in a hospital. Surely this is not expected to happen, but it never hurts to keep watch as the proverb "willing umbrella before it rains".
3. Categorize your financial needs
This step is easy. To categorize your needs based on the time period. The time frame is divided by 3, the short-term needs between 1-3 years, medium-term needs between 3-5 years, and long for more than 5 years.
4. Identify the types of investments that fits your needs
This step is quite difficult to do, because for some of you, this is a new thing. You can learn with the help of relatives or friends who have good financial planning, financial planner hire a consultant, or you can learn it from this site, on the type of investment. Once you understand the benefits of each type of investment, choose one that best suits your financial needs.
5. Discipline is Good!
All of the steps you applied will be in vain if you do not do it with discipline and commitment. The two important things that will make everything run smoothly. You want to honeymoon in Paris and enjoy your Jaguar? Be patient! The more you discipline yourself and keep commitments, then the faster your dreams come true.
Start Planning Your Finances Early as Possible
The earlier you begin your financial planning and investing, the less money is needed. This course will benefit you because the more needs you can plan. As an example, we illustrate the financial planning for your children's education fund below.
You have a son, and you are planning to send him abroad to take the S1, which at that age your child is 18 years old. You estimate the cost to complete college amounted to 100.000 U.S. dollars. If you put your money to get a fund of 100,000 U.S. dollars, assuming the deposit interest rate of 6% per year (not including tax).