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Posts Tagged ‘Investment’

If you and your husband is currently thought to plan for the child’s education funds or retirement funds, how what you choose? Saving or investing?
For example, college tuition plans one child in a period of 18 years. Because college costs are always rising due to inflation, you need to set aside Rp 3.5 to Rp 6 million per month in savings. This fee shall be excluded from your income and the husband, outside of other routine expenditures. Try calculations, if you and your husband have this capability?

Saving money will not be enough because of inflation. The solution is an investment with long-term risk, over 10 years. Saving can be done for short-term needs, four years. For example the preparation of kindergarten schools. But when it comes to higher education, it takes a bigger budget, taking into account the inflation rate every year.

Cost inflation rate of kindergarten education could reach 20 percent per year. Inflation rate colleges rose an average of 15 percent per year. Although there are schools that low inflation rates, but remained high entrance fee.

Inflation became the main consideration why investment makes out a financial solution. This also applies to the preparation of the pension fund. Because if you rely on savings for retirement 25-35 years, it is necessary to USD 75 million – USD 135 million per month. This amount is too large for savings, right? It was no ordinary employee salary was sufficient.

If aged 25 years, by investing USD 587 000 per month you prepare for retirement easier. For the age of 35 years, you can invest USD 2 million per month. Both have the same target investment return of 25 percent per year.
Investing is risky, but risk can not invest more than the investment itself. Risk can not be 100 percent avoided but can be arranged. Investment is to be measured, from its purpose, risks, and investment results. Therefore the purpose you want to invest becomes important. Set a goal now, make financial planning, and select the right investment, if you do not want your money worthless in the future.

Regardless of your job, and regardless of income every month, should be managed better to avoid a deficit. Management and proper financial planning will give the solution of financial problems. Including developing self-sufficiency, particularly for women heads of households. Often deny women could never spare the money. Including to save let alone invest. Though, by reducing the consumption of goods that are less important, such as jewelry or clothing different variations of the model and color, women can set aside Rp 300,000 each month. By leaving money USD $ 300 000 only, women can save money, have insurance or other investment.

Five stages that can be started women in managing finances:

1. Paying off debt
Although financial management already cluttered, not too late to fix it. Especially if you have the amount payable for patchwork. Start setting aside money from revenue to pay debt. However the debt to your obligations. Unpaid debt will gradually destroy your credibility. Your reputation is at stake if the liability (debt) still not settled. Allocate a maximum of 30 percent from a month to pay salaries or debt repayments.

2. Save
Convince yourself that regardless of the value of income, so could be set aside for saving. Allocate funds 10-20 percent of income for savings. To be able to carry out this plan, limit consumption. Women often tempted by any of the goods purchased are actually not too important. In fact, sometimes only carry the influence of friends or a trend. Begin firmly to yourself, by making the priority needs of a much more important.

3. Emergency Fund
Prepare also a reserve fund as an emergency fund. There will always be unforeseen needs, such as serious illness and should be treated. Hospitals need not cost a bit right? Start setting aside funds amounting to five percent of monthly income. Prepare emergency fund to six months ahead. As a precaution, make a special passive account for emergency funds, or acting as a savings. Separate accounts are passively activated from the special account for everyday needs.

4. Insurance
After deducting monthly demand, pay the debt, saving, and preparation of emergency funds, the remaining income can be used to purchase insurance.

Polar life insurance for the head of the family. Anyone who has become the backbone of the family, woman or man, should have life insurance, because if anything happens to the head of the family, family life can still walk and pay of insurance for a specified time.

In addition to life insurance, other insurance types that can also be given priority among health insurance. Also insured property, let alone used to do business, such as kiosks or stores.

5. Investment
Set aside money for investment, should be performed after the above obligation is fulfilled. The simple shapes, if you have more funds, invest your money in gold. But should be careful when investing gold, notice and understand the value of sales and quality.

Allocating money for investments can be taken from other revenue sources as bonus, inheritance, or other income outside the main income. Many kinds of investments, the risk varies, as well as with its investment in the future. Should identify more carefully before selecting an investment product.

If all five of this obligation has been fulfilled, monitor expenditure and adjust the plan that has been built. Disciplined use the money to be key to the success of financial management.