Having the right financial plan is very important. In order to avoid a financial crisis, it is important to review financial flows again. Have you reviewed your finances?
As we get older, of course, everyone wants to achieve stability and economic stability. That's why it's important to pay attention to cash flow. How to have proper financial planning and healthy cash flow? Here's a healthy financial resolution that you can do.
1. Own a Job & Business
It doesn't matter if you are an entrepreneur or an employee in a company. By having a business and a job, of course, you have to make money. Where the money you get is used for savings and also fulfills the necessities of life.
If you are an entrepreneur, the challenge is that you have to be more observant in seeing business opportunities that can generate large incomes. Meanwhile, for those of you who work as employees, you can improve your work performance in the office so you can get a raise or position.
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Another alternative, you can also take a side job to supplement your income so that your savings increase. Whatever you do, persistence, discipline, and consistency determine the results you will get.
2. Have Insurance As Financial Protection
The first thing after having an income is setting aside funds for insurance. Insurance is very important for everyone to have. The three types of insurance that everyone must have are life insurance, health insurance, and critical illness insurance.
Life insurance is to be inherited if someone dies as a substitute for income so that the family left behind can continue and meet their needs.
Meanwhile, health insurance is insurance that pays for all medical bills at the hospital, hospitalization, consultations and doctor visits during hospitalization, medical equipment costs, and medical procedures such as surgery, etc.
If critical illness insurance is usually in the form of compensation, it can be used as a substitute for income if someone is unable to work temporarily or permanently due to a critical illness he is suffering from.
These three types of insurance are a must-have so that when a life risk occurs, you don't have to pay for the hospital from your personal account. But the risk of life is transferred to insurance that is ready to cover your needs.
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3. Prepare an Emergency Fund
An emergency fund must also be prepared to maintain financial stability. The goal can be used for unexpected things. For example, if you have a salary of 10 million per month, you can set 10% of your salary for emergency fund needs. This means that in a month you set aside 1 million per month from your salary. Within a year you have an emergency fund savings of 12 million. Make sure this emergency fund is in a separate account from the account normally used to pay for daily necessities. And make sure you don't touch it either. An emergency fund is used if you really are in an emergency.
4. Have the Right Financial Mindset
Having a good financial mindset is also very important. Because it will affect how we manage and use the money we have earned according to our goals and needs. Allocate 50% of your income for basic needs, 30% for fulfilling personal desires, and the other 20% set aside for savings and investments.
Some good financial mindsets that you must have are self-control, don't be extravagant, living simply, don't let other people change or influence your mindset, and our biggest enemy is ourselves.
Self-control is an attitude that needs to be possessed so that we don't easily spend money just like that. Especially those that are not in accordance with the goals and needs. Avoiding wasteful behavior can also help to run a tight money policy. Because if it's wasteful, how can you save?
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5. Prepare Budgeting
Determining the spending budget per month is important to do. Record your monthly needs in detail, starting from grocery needs, buying groceries, paying monthly bills, and children's needs for those who are already married, such as milk, diapers, school supplies, stationery, uniforms, etc. Don't forget to set aside a budget for insurance, emergency fund savings, and investments. Everything is important to make monthly routine expenses.
If you already have a budget for the necessities of life, don't forget to set aside a budget for alms and entertainment too, OK? Because maintaining a balance of life with a budget for alms and entertainment is no less important, you know. But still, adjust to your abilities and set the right budget for this one post.
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6. Choosing a Lifestyle
A pressing lifestyle is a challenging thing to apply to everyday life. If you want to have healthy finances, again avoid extravagance. Simple life, buy only necessary things. Not buying things you want but in the end, you don't use them.
Call Warren Buffet is one figure that can be imitated. Even though he is one of the richest people in the world, he still occupies the same house and he is not yet known as a billionaire as he is today. Ingvar Kamprad, Founder of IKEA, although he can afford to travel with a first-class ticket, he prefers to travel with an economy-class ticket. Wow!
What we can learn from them is simplicity. A simple lifestyle can make us have more savings and healthy finances, of course. Abundance does not always have to be synonymous with luxury.
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7. Set aside funds for entertainment
Even though living a simple life doesn't mean we are stingy with ourselves, OK? It's also not wrong to occasionally reward ourselves for the achievements of our hard work, as long as within the set budget limits. don't stray!
Entertainment funds such as going to the movies, pampering yourself at the spa, having dinner at a restaurant with the family on weekends, or planning a vacation once a year to unwind. Of course, all of this must be taken into account and allocated for entertainment according to calculations and abilities.
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8. Thinking of Long-Term Investments
It's also an important investment to have. Investment has various types. Starting from gold investment, stock market investment, stock mutual funds, mixed mutual funds, property, bonds, etc. As quoted from www.liputan6.com, the Minister of Finance Sri Mulyani said, "In developed countries, people can enjoy it comfortably, because their hard-working assets and money are invested so that this money or assets bring high returns, and they can relax inattentively. In Indonesia and developing countries, the opposite is true. People work hard, but their assets or money sleep, just put under the pillow. Hard work but not much results. So the mindset is different.”
He also added that in Indonesia, around 85 percent of the people aim to collect money, then spend it. This way of thinking is still practiced by Indonesian people during 71 years of Indonesia's independence. “Just imagine if whatever assets we have can be as productive as in developed countries, the Indonesian people can enjoy prosperity. So we have to think very ambitiously, in detail so that all of our assets work," suggested Sri Mulyani. Therefore, from now on, start allocating your income for investment.