Delaying personal financial planning will cause risk of triggering financial problems. Early financial planning is better and more efficient.
Have you ever consciously calculate how much income for a year? If you diligently prepare a personal financial statement, it will not be difficult to know how many the total earnings during the last 12 months.
Perhaps someone would be a little surprised to find if their income is quite large for a year. But, why there are still many who complained about their financial condition in the end of the month?
Financial problems apparently are not limited to those who earn mediocre. Having adequate income but are not good at managing finances is also likely to trap someone in an acute financial problems.
There is no good financial planning. Money in and out just likes that without awareness manageability. Do you had these kind of problem? If yes, immediately conscious and clean up.
There is a great risk if you postponed your financial arrangements or invest for the future.
What other financial posts such as home, education funds, pensions, and others? Well, that is not getting late, do four steps starting today:
Check the overall financial condition
Do a financial checkup or examination of financial condition. Do you have a positive cash flow? Are you spending this time is always greater than income? Know your true financial condition and fix it first before proceeding further in financial planning.
You can see step auditing or financial check-up here. Examination of the financial condition should ideally be done at least once a year.
Calculate the financial resilience
Try counting your level of financial resilience. Start by signing up assets such as bank savings, deposits, gold deposits or other sources of passive income.
Is the value of all of it is adequate to sustain the needs of your when suddenly an emergency occurs such as layoffs? If not sufficient, it is a sign you’ve had to gather more emergency funds. If the status is still single, you need an emergency fund amounting to three times the size of monthly expenditure.
Measure the adequacy of protection
If you’re currently listed as the main breadwinners and dependents own soul, it would be better if you buy a pure life insurance products as part of financial risk management.
Start compiling a financial plan
When the condition of cash flow you already know, the debt burden does not exceed 30% of total revenue, begin to accumulate an emergency fund, start making financial plans with investing. Start with the most priority one