Skip to main content

Why we need financial planning

Financial planning is especially needed right now because of the growth of consumerist lifestyle, rising inflation that makes the necessities of life in the future more expensive, number of investment products offered, and and the more conscious people to prosper.

These are some of the reasons why we need a financial planning:


1. To protect ourselves and our families from financial risk


In our life cycle, there are times of rise and fall, and can not be denied regardless of the circumstances of our lives, no doubt it's related to money. The ups and downs of the financial situation we can still overcome with the help of a professional. Some of the important problems and emergencies related to finance, for example: job loss, illness, accidents which cause death and disability, the head of the family as a source of income.


2. To pay off debt


It's very good if we already have investment, like investment on the stock market, property, business or collectable items. But there are still many of us who also have large debts, especially consumer debt. It is actually very important to look for the way out.

But it is not appropriate if we invest each month to accumulate assets but accumulate debt interest rates higher than the results of our investments. Therefore, resolving the debt is the most important thing in a financial plan that we create.

3. For the cost of raising children


Every parent would want to give the best for their children, and therefore a considerable portion of the household budget is for the cost of raising children that can last up to 20-25 years before our children can be self-financing.

These costs include when the child is born, to the cost of the wedding, and cost of education since they entering pre-school to college. As an illustration, if the current tuition is $ 5,000, then with the presence of inflation in the last 15 years the total cost to about $ 7,000.

4. for the purchase of assets, from vehicles to home


The house is a major asset that must be owned by someone, because besides being used as a residence, the house also becomes an asset whose value is increased from time to time. The second asset that we must-have is a vehicles (The vehicle life cycle is about 5 years, so it should replaced every 5 years).

Unfortunately not everyone even when they have a job, can afford to buy a house and a vehicle because the salary is only enough to cover their daily lives. Therefore we need a solution so that the desire to buy can be achieved.

5. To purchase an insurance policy


All the assets that we've collected on essence is to meet the needs of our families, but imagine in the event of an accident, illness or death, which make us can no longer support our families. If that's the case, we need insurance to protect ht person who acts as the family breadwinner.

The next question is whether the insurance held enough have good value to ensure the future of the family life of the deceased. What is the actual value of the insurance to be possessed? What are the benefits of health insurance do we have?

6. Enjoy retirement with a comfortable livelihood


Retirement is the time we enjoyed the rest of the job, surely we want to enjoy with a comfortable livelihood. But where can we get enough money to pay for retirement as we want? It's not convinience that when we retired, we still have to find a job to pay for our lives. It's not right too if we had to rely that costs to our children that may still require money for his own life and his family.

As an illustration, if our current age is 45 years with living cost $ 1,500, so when we retired at the age of 55 years we need to save money $200,000 to enjoy our retirement for 20 years.

7. To inherit our wealth to children


If we already have a financial plan, it means all assets and wealth has been arranged for every purpose. In the end, if we live long and retired, all the wealth that we have can be passed on to our children. Therefore, preparing a will should also be part of the financial planning, so our next generation can enjoy and maintain the wealth we inherit.

So when is the right time to start financial planning? The sooner we start, the better, especially when we are still productive.

Comments

Popular posts from this blog

How to have a perfect body while on vacation

Having a perfect body shape while on vacation to a tropical island (beach) is not just only a dream. Because you can make your dream come true by following the tips in this article.
These are body treatments and beauty products that must you do and used, before and while on the beach.
1. Clean the body from hair Don't forget to clean the hairs on the feet area, underarms, and bikini line area. Waxing can be the most powerful option for cleaning and prevent hair re-grows quickly and hygienically. The best time to do the waxing is after a shower, because the body will be damp conditions.
2. Disguise cellulite and tighten your buttocks Cellulite can often reduce our confidence. But you can imitate the Hollywood actress who can perform seamlessly on the beach by using a combined treatment scrub lipo sculpt organic and herbal masks. That way, the fat cells will shed, cellulite will disguised, and tightening our skin. You must do this in ​​the buttocks and thighs area.
3. Face Nutritio…

Tips to stay young and fresh naturally

When we are getting old (above 30 years old), facial lines and wrinkles around the eyes and forehead will begins to appear. And when you look at a mirror, our facial skin seems no longer tight and smooth. Worry not, because we will tell you some tips to stay young, fresh and tighten your facial skin naturally:
Clean your face maximally
A clean face skin is able to absorb maximum nutrients. Clean your face with attention to details. First, wash the face with warm water and use a face wash soap according to your skin type. And If you just use makeup, use a face cleansing brush to clean the remains of the make-up and softly massage your face to help improve blood circulation on your face
Rinse your face and dry it with a clean towel. Apply a refresher to give maximum care and then continue with daily care such as using face serum and moisturizer. (Note: Don't forget to change your towels on a regular basis, because if used too long the fabric will become rough and more vulnerable to…

Tips to overcome boredom at work

Most of the time while at work and at noon, your eyes will getting heavy, body feels weak, losing concentration, and feeling bored. These are the signs that your energy levels have began to decline and you feel lazy to do anything.
You don't need to worry because this is a normal situation. Each individual has a different boredom level, it depends on several factors that influence it such as age, the food you eat and your activity level. You can follow these tips to prevent and overcome boredom that comes in while you are working.
Do light exercise (push up, leg raise, etc) If by chance your boss was not in place, you could take a short time to do push ups, dips or even doing exercises using your seat. Don't do it too long though (10-15 reps is enough), after that your body will feel refreshed.
Eat fresh fruitInstead of choosing a sugary snack with high calories and fat to boost your energy, you better eating fresh fruit instead. The vitamins and minerals contained in it, as well …