Business Momentum

Posts Tagged ‘financial planning’

Financial Mistakes People Indonesia

Prosperous retirement must be the desire of every person. Unfortunately, in reality only a small percentage of people who managed to achieve this condition. The rest? Most people Indonesia had continued to work until the old, or rely on family life.

Why did this happen? The answer is because throughout his life, most of Indonesia tend to make financial mistakes. Many consider this error is not critical, so closing her eyes and let her keep one continuously. The result would be fatal to finance in older age.

What are the common financial mistakes people make Indonesia?
1. Not specify the purpose

If you do not know where he is going, how do you get? To build wealth, you first must have a purpose. You should first determine the amount of money you want, only then you can create a financial plan.
2. Does not regulate small expenditure

You probably know what your general expenses, but do you realize how much total money you spend on little things? Be careful at small expense, especially for the frequently occur, because after a large sum would be worth.
3. Submit all financial arrangements on others

You need to participate in making a financial plan. With the participation of this, then you will better understand the conditions
You are now financially. And you reduce your dependence on people who manage your finances.

Why must start from the goal? The analogy is like this. Imagine if by chance you have spare time on Sundays, and you want to spend it outdoors. Initially you still do not have a clear goal, that matters to you is to walk outside the home. So you get out of the house, drive your car without a definite direction. Well, in the middle of the street, suddenly your new kepikir, oh yes last week I would like to Mall A to buy something. But since you’ve spent a lot of time for a walk without a destination, especially if your position is now even further away from Mall A, you will need more time to get to the Mall A.

Another story from the beginning when you get into a car, you already have a goal. “I want to Mall A”. At that moment you will “plan” which is the fastest way to get to the Mall A. You will come to the Mall A lot faster than the previous story.

Similarly, the story with our finances. If from the beginning we have to determine what the hell we want to accomplish goals with the money we have, we can make an appropriate financial plan, implement it so that ultimately our goal can be achieved in a faster time.

The financial crisis can happen to you if you can not manage money well. Although work is still safe, or even macroeconomic conditions remain under control, their inability to organize, manage, financial planning and discipline to be a source of personal financial crisis.

This condition can be avoided even if they lose jobs, companies do not run smoothly, or macro-economic conditions worse. Owns and operates a financial planning solution.
Planning, strategy, and discipline, this is the key to address the many temptations that make consumer consumption.

Own savings and pension funds is only one way to save some of their financial situation to the crisis. By having a savings or reserves, you can also safely through a crisis. At least you can still survive and be able to earn a living despite the outbreak of the crisis due to job loss, for example.

Financial planners often asserted, you should have a reserve fund of at least three months of income. Some are not the measure of income, but spending more. That is, your bank account should be filled in the amount of money to three months if you lose your life.

Planning for retirement funds in the other conditions to be met. The goal is that you can still live comfortably during a crisis or when no longer productive to make money.

Knowledge of planning and financial management of these can be obtained in many ways. Following the seminar, workshop, looking for references to books, and sundries to be a way.

Here are some financial tips on how to manage or improve our personal finances:

Personal financial planning
The first tip is to plan personal finances, which means first knowing our financial situation (for example, developing a personal income statement and balance sheet treatment), then setting financial goals, and finally develop a plan of action that we possible to achieve those objectives.

Always look for ways to increase income
Another tip to improve our personal finances is to look for ways to increase our revenues from money, such as looking for new revenue sources, seeking to increase sales of our business, seeking a raise or seeking a new job, investing our money, etc.

Always look for ways to cut costs
Just as it is important to always seek ways to increase revenues is also important to always seek ways to reduce our expenses or spend less, for example, avoiding unnecessary expenditures, consuming less, always looking for deals and discounts, compare prices before you buy it, etc.

Getting out of debt
If we improve our financial situation is a prerequisite out of debt as soon as possible, for example, controlling the use of credit cards, negotiate debts, looking for a consolidation loan and, above all, leaving more debt to continue to acquire .

Read the rest of this entry »