Find it hard to Manage Finance? Here are 5 Tips to Help You
Who would have thought of a man of ordinary stature could turn into a great bodybuilder. He has a physical shape to be the name of Indonesia in the international arena would not appear in an instant. Hard training and discipline and would be a daily activity for Ade Rai. In addition to training, the discipline to manage your diet is also taking an important role in his success as a bodybuilder. Did you know, finance is also needed in training and managing the discipline in order to generate strong financial condition? Exercises we do are also similar as that of biaraga namely: the gradual, focus, and consistent. So, in order to establish a strong financial condition of the following are 5 tips that you can do:
Perform a focused and specific. When we first began trying to arrange financing may be too heavy for us to fulfill all things at once, such as insurance, emergency funds, investments, debt management, inheritance, etc.. For simplicity we then should we focus on one or two things first. Try to focus on our weaknesses in advance, for example, if we are accustomed to extravagant, we focus first to reduce spending, or if we do not have insurance even though many people whose lives depend on us, we first focus on life insurance, or for example, we have no savings at all then we focus on the emergency fund and investment. Thus we can manage our finances with more calm and not to overburden our lifestyle everyday.
Do it gradually. Such as exercise, we can not be too drastic lifestyle change in an instant. As someone who never tried to exercise directly do 100 push-ups, we are also not possible to make savings of 50% of expenditure to be allocated to the investment and insurance. Do it gradually so that we can do it with more calm and comfortable. Do not be too too much psychological pressure on yourself. The pressure is too large will make your stress and give up halfway. If you can conveniently manage your finances then you will tend to be happier and termonivasi to do it long term.
Do it consistently. Sports experts say is needed to maintain fitness exercise regularly and consistently. Similarly, in finance we need to consistently manage our finances so we always excellent financial condition. All long-term financial plan will be achieved only if done consistently. If you have a plan to save for retirement then you should do until you retire, so if you have a link unit then pay the premiums until the deal is completed in accordance with the policy. Stopped in the middle of the road could result in investments you do not hit the target.
Keep your cash flow. Cash flow consists of two things: income and expenditure. At the expense of course you want to make your spending as optimal as possible so that is smaller than income. While the income you can do three things. First, try to multiply your income heading to minimize the risk of reduced income. Second, keep your income growing every year at least by inflation. Third, always add the investment portion of your income each time getting bigger. Also use this benchmark to measure the health of your cash flow: The maximum loan repayment is 30% of income, the maximum insurance premium is 10% -15% of revenue, and the minimum top-up investment is 10% of revenues.
Always monitor the development of your investment. This is the easiest thing to do but unfortunately the most rarely performed. Many of us who just do top-up investment but did not know how to move their investments. They always assume that the long-term value of their investment will definitely go up so that if they assume that the drop down only briefly. Though not always so forever. Be aware that any investment product does not exist in this world who go up forever. Even investment 'safest' was like gold had experienced stagnant for about 25 years to penetrate the new higher rates. So any investment product, you should always monitor how it goes. Minimum monitoring done once a year and do not hesitate to merubahan investment portfolio if you are not running as expected.
Above are the 5 tips to build financial strength. Keep in mind that a 'rich and affluent' is not only about capital, degree, job, or fate. Financial security requires more focus, consistency, discipline, willingness, and effort than anything else. So the conclusion is everyone can be financially stable as long as we all want to try.
Who would have thought of a man of ordinary stature could turn into a great bodybuilder. He has a physical shape to be the name of Indonesia in the international arena would not appear in an instant. Hard training and discipline and would be a daily activity for Ade Rai. In addition to training, the discipline to manage your diet is also taking an important role in his success as a bodybuilder. Did you know, finance is also needed in training and managing the discipline in order to generate strong financial condition? Exercises we do are also similar as that of biaraga namely: the gradual, focus, and consistent. So, in order to establish a strong financial condition of the following are 5 tips that you can do:
Perform a focused and specific. When we first began trying to arrange financing may be too heavy for us to fulfill all things at once, such as insurance, emergency funds, investments, debt management, inheritance, etc.. For simplicity we then should we focus on one or two things first. Try to focus on our weaknesses in advance, for example, if we are accustomed to extravagant, we focus first to reduce spending, or if we do not have insurance even though many people whose lives depend on us, we first focus on life insurance, or for example, we have no savings at all then we focus on the emergency fund and investment. Thus we can manage our finances with more calm and not to overburden our lifestyle everyday.
Do it gradually. Such as exercise, we can not be too drastic lifestyle change in an instant. As someone who never tried to exercise directly do 100 push-ups, we are also not possible to make savings of 50% of expenditure to be allocated to the investment and insurance. Do it gradually so that we can do it with more calm and comfortable. Do not be too too much psychological pressure on yourself. The pressure is too large will make your stress and give up halfway. If you can conveniently manage your finances then you will tend to be happier and termonivasi to do it long term.
Do it consistently. Sports experts say is needed to maintain fitness exercise regularly and consistently. Similarly, in finance we need to consistently manage our finances so we always excellent financial condition. All long-term financial plan will be achieved only if done consistently. If you have a plan to save for retirement then you should do until you retire, so if you have a link unit then pay the premiums until the deal is completed in accordance with the policy. Stopped in the middle of the road could result in investments you do not hit the target.
Keep your cash flow. Cash flow consists of two things: income and expenditure. At the expense of course you want to make your spending as optimal as possible so that is smaller than income. While the income you can do three things. First, try to multiply your income heading to minimize the risk of reduced income. Second, keep your income growing every year at least by inflation. Third, always add the investment portion of your income each time getting bigger. Also use this benchmark to measure the health of your cash flow: The maximum loan repayment is 30% of income, the maximum insurance premium is 10% -15% of revenue, and the minimum top-up investment is 10% of revenues.
Always monitor the development of your investment. This is the easiest thing to do but unfortunately the most rarely performed. Many of us who just do top-up investment but did not know how to move their investments. They always assume that the long-term value of their investment will definitely go up so that if they assume that the drop down only briefly. Though not always so forever. Be aware that any investment product does not exist in this world who go up forever. Even investment 'safest' was like gold had experienced stagnant for about 25 years to penetrate the new higher rates. So any investment product, you should always monitor how it goes. Minimum monitoring done once a year and do not hesitate to merubahan investment portfolio if you are not running as expected.
Above are the 5 tips to build financial strength. Keep in mind that a 'rich and affluent' is not only about capital, degree, job, or fate. Financial security requires more focus, consistency, discipline, willingness, and effort than anything else. So the conclusion is everyone can be financially stable as long as we all want to try.
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