In addition to preparing the year-end party, Also means it is time to re-organize your financial planning in the year ahead.
Manage finances properly will provide many benefits, Including first Achievers the ideals of family, such as quality education for children, pension plan, buying a second home a bigger, buy a car, start a business / venture. Second, anticipating the family’s financial problems, such as up in debt. By doing financial planning, the risks that may Arise can be anticipated. Thirdly, there is always the control of financial flows in and out of the family, so it could be detected well and there is no “Bigger stake than the pole”
What should be re-done at the beginning of this year in managing the family finances?
1. Evaluation (review)
Time to reopen and gather all of your financial records and see how your financial situation this year. Is it in accordance with the planning at the beginning of the previous year? If it is Appropriate, you can continue or be added to the next year’s plan. If not fit, you need to check in advance where it Died, so the error will not happen back in 2015 this plan.
2. Financial Check Up.
Know all your expenses and income. After an evaluation, the first thing to do is to identify what your family expenses and especially knowing where your only source of financial income and how much. The first stage is important to Recognize your financial capabilities.
3. Arrange Financial Goals
Why do many people have financial problems? Insufficient income the cost of living, cannot even pay the debt? Turns out the main reason is Because they do not plan where the money they have to be used. Important elements in good financial planning, financial goals are clear. There are two (2) factors that we have to Consider in setting financial goals items, namely the duration and type of needs.
Based on the time period, we can divide Become financial goals:
• Starting with the current financial purposes, meaning that the fund in the form of liquid available as a source of funds to provide for the family, ranging from the purpose of payment of electricity, telephone, school fees, transport, up to the needs at the end of the week, such as eating in a restaurant, roads. This requirement needs to be designed and budgeted funds that can be controlled on a regular basis every month.
• Short-term financial goals are only taking 1 year to Achieve (e.g. Saving to buy a motorcycle, a laptop) or the funds for the purposes of a family vacation can be planned repeated every year.
• While the medium-term financial goals is a plan that takes 2 to 5 years to Achieve (e.g. Investment to provide children’s education expenses, buying a home).
What about the needs of your children’s education? Supposes next year your child starting school from, whether the investment you’ve done the previous year are sufficient for school fees? If you have not been allocated, you only have to have 1.5 years to prepare ahead of the new school year next year. Nowadays we know that the longer fund education will increasingly burdensome bag you as a parent, but the Earlier we prepare through investment ( ” The Variety Of Shapes on Investment ” ) will Become lighter to do.
Long-term financial goals. Your purpose is Categorized as a minimum in the next 5 years. Whether the investment for purposes of your own pension fund in accordance with the targets until the end of this year? are the investment products we choose are in accordance with the requirements? If it is Appropriate, you continue with the design of the investments made the previous year. If not done, Immediately calculate your retirement funding needs from now on, and Immediately invest to meet them. Do not be put off! Also think how to Achieve it, perhaps by setting aside separate funds each month for the purpose.
Emergency Fund needs Also need to be prepared as a protection or money precaution on the risk of death / accident on yourself as a funding source provider of the family.
While based on the type of requirement, you can divide the financial goals into three types of goods, such as consumer goods, i.e. Goods that we routinely use, relatively cheap price, but it needs to be large enough accumulated annually (e.g. The need toothpaste, bath soap, laundry soap, shampoo, groceries). Next is durable goods, i.e. Goods that are rarely purchased, the price is relatively expensive, but can be used for a long time, at least 3 years, so as to fulfill before we can the make investments (e.g. Cars, motorcycles, TV). And the last is the intangible goods, are goods that cannot be touched, but very Necessary for your family items, namely medical expenses, education expenses, your retirement living expenses, the cost of a vacation. The need for these items can be customized as per priority when the goods are needed, whether it should be Provided Immediately or they can be delayed to meet the needs of others first.
The next step of preparing the family’s financial goal is to do the classification of our financial goals and priorities based on both the above categories.
4. Create a Family Budget.
Next the make your shopping budget. Calculate the costs. At this stage it should be made very detailed with a nominal value of dollars already incorporate the budget for each institute to all financial goals, Including basic needs of your family.
Most importantly, the values you entered is reasonable numbers, so you can know the approximate real conditions of your family’s needs for a year ahead.
Inflation is an important factor that should be included in the calculation of the cost that you’ll need in the future.
Do what you already collated in the financial plan.
Good financial planning, without accompanying discipline would have no meaning. So there needs to be a commitment to discipline you will be running your own family financial plan.
7. Back to Evaluation
Evaluation is important to Determine Whether your financial plan is still Appropriate. E.g. investment for the purpose of education of children are reviewed restaurants on a regular 3-monthly basis from, whether the results are in accordance with the expectations of investment return is expected, if there is an increase of the value of money in the school, so that the value of your investment should be Increased?
But do not Also too strictly monitor your investments, your financial goals Because stacking is a medium or long term.
Finally, if it was easy not Regulated financial family done with a good plan and Carried out Gradually and discipline?
You and your family will be Able to enjoy your vacation plans in the coming years with calm without worries overshadowed an error Occurs excessive expenditure of funds from sources of funding your family.