No Financial Plan? Here’s the Results

23 Jan 2018 by Edwin

Everyone has their own priorities in life. There is a career priority, family, and some even put forward the affairs of his love. From the various priorities we can choose, almost all of them need good financial planning. Not just aimed at parents or who are already financially established, young people also must understand with financial planning because it is useful for the financial condition in the future.

What kind of financial planning is needed?

Clearly, an understanding of the importance of how to manage your finances starts from the awareness to avoid excessive spending. Start from recording the receipt of salary or regular wages, then always keep a good record of transactions or expenses that you do, all that is important to avoid bad financial conditions.

How if we do not have good financial planning? There are impact and danger to your lifestyle and can even be impacted by people around you. Here are some examples.

No Fixed Assets

Fixed assets such as property, vehicles, or other things are one form of investment because of its value. For those of you who have worked for several years but have no fixed assets, it could be due to ineffective financial plans. Spending regular salary for lifestyle and other needs without setting aside to invest can cause you trouble later on. With good financial planning, your work will always be seen from the ownership of fixed assets, whether mobile or immovable assets.

You have any difficulty to determine the cost allocation for fixed asset investment? Try to set aside about 20% of your regular income each month for savings and investment needs.

Depleted Salaries

Receiving a monthly salary would be a blessing because we can spend it on things we like. Eat in a favorite restaurant, buy limited edition toys, or vacation to where we want, all that can be done with the money you have. But, not all activities should be done at one time or within the adjacent time period.

You need good financial planning in managing when to spend money for what you want. Want to go on holiday? Wait for the right moment. Want to eat at your favorite restaurant? Wait for the right moment and invite your friends. Want to buy limited edition toys? Think again how important it is to your life. Try to decrease all expenses that have the potential to deplete your wages. You don’t want your salary runs out at mid-month, isn’t it? What if there is a sudden incident that requires you to spend more money when your salary runs out? Although there is an option to indebted, debt is not a wise choice for financial planning.

Got Lots of Debt

Debt, the impact of poor financial conditions, can make you and the people around you uncomfortable. When you decide to owe some money, there are many things that you bet on, including personal information and your relationship with the person you are asking for debt. Good planning can keep you out of debt, and even if it requires you to borrow, it does not make you trouble to pay it off because of good financial planning.

If you already own a debt, make an effective debt repayment plan. With good financial planning, you can use online loan services like KreditPintar to help improve your financial condition.

Anyway, never underestimate good financial planning for an established financial future. Especially if you are young, your chance to get financial establishment condition is still wide open!