Prosperous and free from financial problems is every one dreams. But how we can achieve all those dreams? And the only answer is a financial planning. There are five steps you need to do in financial planning, namely :
Determining the financial goals
The first step we have to do in financial planning is to determine what the ultimate goal is we want from our money, so we can make an appropriate financial planning, implementing it and eventually our goals can be achieved faster.
Here are the long term financial goals :
Funds to finance the retirement in a lifestyle that you want.
Family protection from the financial risk.
Funds to finance children's education.
Legacy for your children.
Besides, there are a short terms financial goals such as :
Buying assets, ex. houses, cars, electronic and others.
Year-end holidays plan, of course it would have to be adjusted with our financial conditions.
Analyzing the current financial conditions
After formulating financial goals you want to achieve, you need to know where your financial position at this time. After knowing the financial position and know the objectives to be achieved, then we can make plans for our financial lives. And to know our financial conditions is calculate the number of properties that we have, then reduced with the amount of debt we have to pay.
Make a financial planning
A simple way in order to become rich :
Expenditure must be less than the income
Invest the difference and re-invest the result. Make a personal/family expenditure budgets to achieved the financial goals that we want.
Doing implementation of financial planning
From the budget you've made, of course you know the available funds that you have every month and can be used to finance of the financial planning. Find out as many as you can the safe and suitable investment.
Periodic monitoring and evaluation
Once we make an investment, we need to do next is make a note of our investments and to monitor the changes in the value of our investment.
So, periodically, we must monitor and evaluate the return of our financial plans. Monitor useful to ensure that the investment was according to our plan, and if it does not we can take action quickly in order to keep financial goals can be achieved. While the evaluation need to be done because our need may change over the course of time.