Financial planning helps us a lot to decide how much money we should save, invest, and use in our daily life. Most people do it well and the rest still don’t know how to manage. They also don’t know how to improve their income or at least they can invest and cover their expenses. The proverb say, “If you fail to plan, then you plan to fail”. In financial planning, it could happen. How can we manage our money properly?

Understanding financial planning is the key to reach your success in financial. Don’t think that you are never be a good person in financial planning. The future can be planned from now, especially the bright future and everyone can be a master in this field.

Look at this comparison among type A and B. Which person are you?

Comparison Type A and Type B

There are five ways to get the bright future:

  1. Make financial planning and Smart Shopping
    It is hard to do in the first time. Make it regularly and you will get used to it. Make your financial planning for next month in the end of this month. List your income, and expenses. For the expenses, you can split into three things:

    • Pay loan (max. 30% from income)
    • Saving
    • Living cost (max. 60% from income)After you have your list, allocate your money to your list.
  2. Save frequently. The minimum of saving is 10% of income. Saving is short term asset. It should be liquid, no risk, and small return.
  3. Invest carefully. Investment is long term asset. It doesn’t have to be liquid, risky, and big return. You have to know well before you decide. There are a lot of investment tools out there.
  4. Credit/Loan wisely. Don’t spend that you cannot afford to lose.
  5. Donate regularly. Donation makes you rich.

Now, let’s make a financial planning. First, list your income and expenses (on the next page). Make priority and be discipline on what you have decided.

Happy financial planning!

Iwan Hartawan. 29-09-2012. Bandung. Money Management Seminar.

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