Tuesday, 26 April 2022Everyone needs to have a financial plan, because a financial plan can be a guide to achieving financial goals. Financial planning takes time and a process that must be carried out on an ongoing basis. It's never too late to plan financially, the word regret is only present if you don't have a financial plan.
Whatever your financial goals are now, whenever the time is, and whatever the cost, everything can be planned and realized, as long as you want to do the following things:
Manage family finances well.
Provide appropriate risk protection and management.
Accelerate the repayment of consumer debt. Maximizing investment returns.
Funds for the purchase of houses, vehicles and assets.
Financing children's education costs.
Prepare old age funds (pension).
Achieve other financial goals.
Financial planning is also very important to be taught to children. That way they can learn usability and how to use money well. I've also written about the importance of financial education, you can read about it here.
Then is financial planning only for the rich?
Often, people think that financial planning is only needed for rich people. Because in his mindset he thinks that if he has little money.
Financial planning is not only for rich people because it's useless if you are rich and have lots of assets, but if you can't manage it your financial goals will never be achieved.
Even if you have little money, if you can manage your finances well, you can definitely achieve your financial goals.
Financial planning may not make you rich, but it can make you prosperous. Everyone who has financial goals and manages their own finances needs a financial plan as I described above.
We take the example of employees with relatively fixed salaries every month, an employee must be good at managing money to meet life and short-term needs, medium-term and long-term needs.
So employees need to be good at managing their money so they can buy financial goals that require a lot of money.
For example, to pay a down payment for a house, buy a car, prepare children's tuition fees, prepare marriage funds for those who are not married, prepare a pension fund, and so on.
Most people use the concept of a financial pyramid to plan their finances.
There are 5 stages in this concept, here are the explanations:
1. Wealth creation
At this stage a person works or tries to earn money. Whatever the job or business there is nothing wrong, but the most risky when someone only has 1 active source of income.
Yes, new income is obtained if we are actively involved. This is a very important stage, we need to have skills to be able to make money, we need to learn and keep learning. We should not only be busy chasing money, but we also have to think about how we are being chased by money. One way is to improve our competence and skills.
2. Wealth protection
At this stage we are building the Financial Foundation. We have to prepare well and count all the parts in detail. Because this is a foundation, of course it must be built firmly so that when there is a storm, our finances will not be disturbed. Despite the fact that many people ignore this foundation because it is invisible and cannot be exhibited.
3. Wealth accumulation
Here we start investing for future needs such as setting up education funds and retirement funds. The longer your TIME, the lighter we have to invest each month. You can calculate how much you have to set aside each month using the Financial Calculator from the Cekkeuanganku Application on the financial goals menu.
4. Wealth acceleration
After everything is done, at this stage you are free if you want to fulfill your delayed desires or invest/build a business that is not solely for your personal interests anymore but is already thinking about the interests of others.
5. Wealth distribution
This is the final stage, where after we build our Financial Pyramid in the form of various Asset Types, we need to make a wealth distribution plan/inheritance plan so that the assets owned can be distributed properly to the right people quickly and cheaply.
Many people consider it taboo when talking about inheritance, but we must not ignore this stage to avoid problems that often occur in relation to inheritance
That is how we can plan our finances for our future or our old age. Actually there are many other ways, depending on how you choose an easier way to manage your finances.
And it is clear that managing finances is very important for ourselves and our families.
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Financial plan is necessary, just like family planning, it needs a plan. It all depends on how we properly manage our money