Thursday, May 26, 2011

Financial Planning for Family

All people want to live happy, prosperous, and tranquil. But, is it possible that the desire will come true? Fate indeed exist in God's hands. But, not impossible happiness and prosperity that we can create its own, certainly with effort and hard work.

The desire to live better in the future is a valuable capital. The question is, how can achieve this? The key to all this is to set and plan our finances carefully. However, the basic desire to bring happiness just not strong enough to motivate us to be disciplined money management. There should be a specific goal for us is more focused on the goals and objectives into the future.

We must realize that a mission impossible to realize all wishes. We must be wise to determine specifically, what was the main goal. How, we must first record all the goals were based on the cycles and stages of life.
For example, if you're still single, maybe buy a car, owning a house, get married, including the purpose of your life. Once you get married and have children, pay for education for children up to the highest level, setting up a pension, set aside for child marriage, became the next destination.

Among the many that goal, we must sort by staying grounded in the earth. That is, by looking at the ability of yourself and family, financial condition, and the element of immediate needs. You must dare to decide which one takes priority.

Often, in the determination of priority goals, emerged amid the temptations of the road. For example, fears or worries you or your partner's serious illness or death. Various of these risks must be considered, but do not interfere with the determination of purpose in life.

Emotional factors that would interfere with your real goal of your family financial planning. Worries and fears for the future can not be the basis of family planning purposes. A more fundamental motivation is to reach out and bring happiness to you and your family.

Financial planning is not just related to the value of money. If we just simplify in a matter of numbers, financial planning purposes was not optimal. Therefore, we could not say, allotment of money to enter a child to college $ 75 million and cost only $ 10 million holidays will always be true.

Although ultimately we have to count with numbers, financial planning purposes bigger than that, namely to provide the best for the family. Concretely, this is how to bring pleasure and happiness for the family. Success is not simply calculated from the achievement points. Moreover, the highest size is the inner satisfaction.

So, when setting priorities for family financial planning purposes, it would not hurt us begin to sort destination with time scales: long-term and short term. Short-term goals usually within 12 months. While the long-term goals can be more than one year to tens of years.

Short and long term planning is as urgent and important needs sorting. We often difficult to distinguish between them. Possibly, needs and our goals are important but not urgent at this time. For example, we now have a child was a baby and intend to plan baby education funding. The cost of child education is clearly important, but not urgently needed in the near future.

There are five things to consider in determining family financial planning purposes. Namely, SMART: specific, measurable, achievable, realistic, and time-frame.

Specific. That is, we should be able to imagine our goals in detail. For example, to fund children's education, we should be able to estimate the prospective university our children later. We also need to imagine the life we ​​want at the time of retirement to fill later. Measurable. The measuring tool is the amount of money. Suppose, we want to formulate a plan year-end holidays. We have to estimate the budget needs a vacation together. Achievable or we can achieve. Should be adjusted financial goals with our financial capabilities. Realistic or reasonable, not the fantasy that can not be realized. Time-frame. That is, we must have a specific time frame to achieve them. Suppose for the education of children, we must know clearly when the child going to college. We also need to know at what age we are going to retire from our jobs

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