financialtreat – will explain about A Guide to Financial Planning Tips for Beginners that you will get in the following article. let’s look at this article carefully!
It is undeniable that every parent or youth certainly has a wish that always wants to be realized. but still confused about how to try these Financial Planning Tips for Beginners so that you can achieve your wishes or realize the thoughts you crave.
You must know this financial planning because this is one way to realize your dream. but what exactly is this financial planning. well we will discuss in full from this article.
Definition / Definition of Financial Planning
Before that, for beginners, if you are still unfamiliar with the term Financial Planning, then you should first get to know the Definition of Financial Planning
Financial planning should be understood by everyone. This is intended for anyone to be able to do financial planning well. Actually, financial planning can start as early as possible, or since you get pocket money.
By knowing financial planning, you are required to calculate how to save expenses, all of which are sufficient. That is one simple form of financial planning. Well, to discuss more about financial planning, see the explanation below.
What is Financial Planning?
Reporting from several sources, the intention of financial planning itself is a form of comprehensive evaluation of the current and future financial condition of investors. Financial planning is also a process by which an individual will strive to meet his financial goals through a comprehensive plan implementation.
What is the Purpose of Financial Planning?
A financial planning concept requires a financial goal to be achieved. You also need to have a proper timeframe as to how long you want to achieve your main goal. Make a clear action plan so that you can make a planned path to be able to achieve your financial goals in a timely manner.
Examples of Financial Planning for The Purchase of a New Home
A wish that requires large sums of money to realize it, cannot be achieved easily without careful planning. As an example is the desire to buy a private house that requires a large amount of money. If you have such a desire, it’s time to do financial planning and project when the wish can be fulfilled.
You can start by analyzing the expenditure items every month. By analyzing your income and expenses every month, you can start prioritizing your income for any needs.
For example, if you buy a house of IDR 600 million in South Tangerang on a mortgage basis, it means that you must be ready to pay installments with a predetermined period. Make sure basic expenses Such as food, electricity, water and others are not disturbed because of the amount of mortgage installments.
How to Make a Plan for Beginners to achieve Desire but Free from Debt
Applying financial planning in everyday life, meansyou are easily responsible for the money from your income. Some unwanted things can happenYou are not responsible in your finances.
One of them is entangled in debts and receivables. To avoid this situation, here is how to make financial planning that can be applied in your life.
1. Start Now
A lot of times I hear the vents of friends or clients who say, “Duh, let me know a long time ago.” There is regret between the lines here. Actually, investment is never too late. We can still do it, as long as we do it and are willing to start it now.
It’s as simple as the more we are young, the risks can be minimized and the results can be greater, while the funds we invest can be much smaller for equally large returns. Time is our good friend. Take advantage by starting an investment now.
2. Consult or Talk to Someone Who Understands
There are many books and blods as well as articles on investing. Maybe we can understand and understand it, but the results will be different if we consult directly with financial planners because what we need can be specifically explained and directed according to our financial needs. After all, we will have the freedom to ask more details and learn, right?
3. Have Financial Goals
Financial goals are a map of our lives. If we have specific financial goals, then we will know what we should do and how to achieve them. For example: Pension Fund Needs. We want another 30 years of pension, for example, then the right investment instruments are those that provide large returns for the long term such as stocks and mutual funds. And by having financial goals, it will make it easier for us to monitor its development whether it is in accordance with the target or not.
4. Start Investing From Simple
If we are still afraid or hesitant to start investing in stocks, look around the products in our homes. Is the product listed on the stock exchange? Simple household products like Blue Band, already existed maybe even before we were born.
If we have believed in the product for more than decades, why don’t we have the company? Or start from a Bank whose ATM is stored sweetly in the wallet? Or we just have a company whose products are the brands of clothes that we always buy and are a mandatory clothing line for the contents of the closet, favorite coffee place, or our little brother’s favorite burger.
5. Invest As Far as The Contents of the Wallet
Investments don’t always have to be expensive and millions. There are several preferred shares whose prices start at Rp. 700.00 per share or Rp. 70,000.00 per lot. Banking stocks range from Rp. 4,000 to Rp. 11,000, – or about the most expensive million. Or we can also have Unilever shares with a capital of Rp. 4 million.
Still feel doubtful and expensive? We can try by starting to invest in mutual funds only. We can have mutual funds starting from Rp. 100.000,- And with the autodebit system, we don’t have to worry anymore about forgetting to invest because of the convenience provided.
6. Diversification
Don’t put eggs in one basket’, surely we’ve heard that term. A simple analogy with the intention that our investment returns do not all fall if market conditions are not conducive.
We could have invested in banking stocks, property, construction, mining, consumer goods, and only have one type of stock in each field. Can. And this already includes diversification. For beginners, it’s good that we only have 5 – 7 types of stocks that we are comfortable investing in long-term.
Mutual funds themselves already have a balanced diversification in their portfolios, so if we have a busy time to choose and limited funds, just buy mutual funds, because there are already investment managers who are competent in managing good results for our investments.
7. Independent
Standing on the broker is indeed delicious. There are already investment managers who help us arrange when is the right time to sell or buy stocks. But by being independent and doing the learning process yourself and knowing the supporting news, automatically there is indeed extra work done, but I am my own master.
If you want to do this method for beginners, then below is specifically for those of you who want to know how to complexly and thoroughly:
Additional Information On How to Manage Your Money Properly and Correctly
1) Check Your Financial Condition
The first step in making financial planning is to check your financial condition. Calculate how much income you can get every month and record the source from anywhere. Make an estimate of whether it is possible to get other income than your main income.
2) Make a Monthly Expense Post
After all income results are clearly recorded, you must make a monthly expenditure post in your financial planning. Record what should be a fixed expenditure Every month. Don’t miss important expenses such as installments, budgets for telephone credit to your vehicle’s gasoline needs.
By making monthly expenditure posts, you can find out how much money you need every month. In addition, you can set aside any expenses that are notused And allocate them to other expenses or for Savings.
Prepare a budget for unexpected expenses so that you can prepare if something happens in one month of travel.
3) Set Aside Income for Investment and Saving
If it is clear how much you need every month thenYou can start to set aside incomeYou for investment and saving. Need To do is to prioritize saving before making an investment.
Savings are more liquid than investments soYou have to divide them according to your needs. If you don’t plan to buy anything that is consumptive then you should switch your income for investment only.
Look for investments that can generate returns in the not too long time so that you can be more flexible in managing income. You also have to remember the principle of high risk high return in the world of investment so that there are no mistakes in making investment decisions.
4) Take Advantage of Financial Planning Technology
So that you can easily record expenses, income and various other needsYou can rely on financial planning technology. There are many financial planning applications that you can try to use to make your every activity easier.
The technology is already available in an application that can be downloade directly on a smartphone so thatyou can make planning much easier and faster.
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5) Never Go into Debt for Consumptive Purposes
Buying something you like is fun, especially if it can make your mind calmer and make the atmosphere more productive. Reporting from various sources, it is also good that you don’t buy various consumptive needs by going into debt.
This consumptive need is not a long-term investment because the nature of the price will fall steadily and is not profitable in the long term. If you really want something then use the money you have set aside specifically for these purposes so as not to really burden your fixed finances.
Those are some Financial Planning Tips for Beginners, in doing this planning, hopefully you can do it consistently. it may seem complicate but if you are use to applying it, it will not be as complicate as you think. let’s start this second we apply for your future.
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