Stages of Family Financial Planning You Must Try!

financialtreat – will explain the Stages of Family Financial Planning You Must Try! which you will find in the following article. let’s look at this article carefully!

Live not only for today, but also for the future. And for the sake of a better future, everything in your life should be well planned, including family financial planning.

Family financial planning doesn’t need to be too complicated. Indeed, you should use a financial calculator to make planning easier. But what is important to do is to make details of expenses and income, as well as record keeping in an orderly and neat manner.

Stages of Family Financial Planning You Must Try!

If this can be done, you can measure your financial condition, and can find out whether the family’s finances are in a healthy condition or not. Well, here are five reasons that will explain why financial planning is so important for you and your family.

1. A financial plan helps determine spending priorities

One of the crucial points in financial planning is determining expenditure items. At this point, you need to create a priority list of spending items, from the most important to the most temporarily negligible.

By prioritizing spending, you can manage money coming in and going out more effectively. And when a priority list of expenses is made, you can promise yourself to stick to it. You make the list, you are also responsible for it.

2. Financial plans help manage expenditure allocation

The way to set the expenditure allocation is by referring to the list of spending priorities. The list should be a reference when every month you want to spend money to meet various needs.

Let’s say for example in a month you have to spend money for two different purposes: buying a laptop and paying child tuition. You can look at a list of financial planning and determine which of the two needs is the most important, and whether they can be met at the same time.

3. Monitor expenses with a good financial plan

By monitoring the flow of household money, you can maintain your financial condition in the long run. In addition, good supervision will ensure the health of financial conditions, as well as prevent leakage of household financial budgets. One important tip: never waste your budget on non-critical expense items.

4. Planning short-term and long-term financial goals

What do you want to achieve over the next year? And, where do you imagine your family to be in ten years from now? Will your family be financially healthy in ten years?

The purpose of financial planning is to visualize family finances over a certain period of time, either annually or every five years. For example, in the next 5 years, you need to prepare for your child’s school fees so that every month you need to save a certain amount.

By making short and long term plans, you can simultaneously measure the quality of life for you and your family. Because after all, a healthy family first starts with healthy finances, right?

5. Make life more calm and prosperous

Good financial planning can make life calmer considering that you have prepared your expenses well. Congratulations if you can make a good financial plan, but if not – because you feel you need help you can work with a trusted party.

Stages of Family Financial Planning

For those of you who are married, family financial planning needs to be done to achieve financial stability. This also needs to be done so that you and your partner don’t make a fuss about money. This is where you need to know how to manage family financial planning. Find the answer here.

Achieve Financial Stability with Family Financial Planning

Managing family finances is different when you manage your own finances. There’s a lot to consider when making a decision. You also need the help of a partner to do this. In order to be able to prepare a financial plan carefully, here are the stages of family financial planning that can be carried out.

1. Discuss with your partner first

Before starting, you and your partner need to first discuss this household financial planning. If you and your partner both work, it is necessary to know the amount of each other’s income.

Likewise with costs for basic household needs, whether you want to combine your income or there is a different percentage distribution between husband and wife.

2. Prepare a monthly budget

After agreeing, you and your partner need to make a financial budget that applies on a monthly basis. This budget will control home expenses right on target. That way, you will know your household expenses are running Where have you been.

It also makes it easier for you to plan your finances for clear goals. Why per month? Because your money could be used for different needs every month.

3. Prioritize needs

Family financial planning that should not be missed is setting priorities. The purpose of the arrangement is important to make it easier for you to meet the needs that must be met. The trick is to rank the most vital needs to the ordinary ones.

Sort by number to make ranking easier. For example, the need to eat, pay electricity bills, pay bills for those of you who use credit cards, and others. From here you can make good family financial planning for the household.

4. Have one family account

This one family account makes it easy for you to make payments for various household needs. The existence of this account is one of the important things for you to prepare. This is done so that you and your partner can jointly monitor incoming and outgoing money for household purposes.

It doesn’t matter if you and your partner have their own savings books for long-term savings, but savings for household transactions also need to be held. You can download the mobile banking application to facilitate all your daily transactions.

5. Prepare insurance

The next financial planning is to prepare insurance for family protection from various problems. Generally, the insurance that you can provide for your small family is life and health insurance. Both of these insurances are important.

For health insurance, you can choose insurance organized by the government such as BPJS Health or the private sector. For life insurance, almost all insurance companies here provide it.

If you want additional insurance, no problem. For example, you have a business, protect your business with business insurance. For those of you who own a vehicle, protect your assets with motor vehicle insurance.

6. Prepare an emergency fund

For an emergency fund, you also need to prepare it as early as possible. This fund will help you deal with various kinds of problems or obstacles that occur suddenly. Usually because there is no emergency fund preparation, you are forced to use savings that should be used for other purposes. This of course can disappoint you.

So that your plans are not disrupted, you need to save your emergency funds in another account. This account will only be accessed when you really need it, so it is different from the account for transactions.

The way to collect an emergency fund is that you calculate it from your household expenses per month. For those who are married and have children, the emergency fund should be 12 times household expenses.

7. Investment also needs to be made

Investment is financial planning that should not be ignored. By investing, you get additional income and it is used for future purposes. Some of the current investment options for you are mutual funds, bonds, to saving gold.

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8. Prepare special savings

To make you have a frugal lifestyle, prepare savings that will be useful in the future. You can save money in the bank by opening a special savings account. If necessary, there is no need to use an ATM card so that the money is not used carelessly.

The amount of this savings does not have to be a lot, as long as you do it every month and of course be consistent. One day you can use your savings to make your and your family’s hidden dreams come true.

That’s a little explanation about family financial planning and some of the stages. Don’t underestimate this activity, because if you ignore it, sometimes it can have very fatal consequences. Impact on future life and also marriage. Good luck!

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