Whether it is Financial Management?

Financial management is the process to achieve financial goals through financial arrangements carefully. Your financial goals can include buying a house / land, save for worship Umrah / Hajj, education for your child or your pension plan preparation and also have some insurance as required.

Basically, financial management is needed to determine clear objectives for managing our personal finances or family. Without a clear financial management, we will not be able to manage the revenue / expenditure us well. Without good financial management, we would be inclined to spend money we earn with difficulty. without necessarily the direction and purpose.
One of the common goals of financial management is that at some future time, we will obtain financial freedom, namely that we will have sufficient funds to meet our needs.

Open up your insight
Many of us felt it was doing financial management but the facts show that at the time the fund was needed was not sufficient.

The survey, conducted by AC Nielsen and Citibank executives showed that 70% of Indonesia's endangered old dihari poor.

Step / Financial Management Process You Should Go through
1) Determine the financial / investment.
What is its purpose: Your Child Education, Pension Funds, Health, pilgrimage or other financial goals.
2) Calculate and set your financial goals and strategy, to achieve it. You must specify that the funds will be needed when the time comes, for example when your child will need how much college costs. In addition, you also must have a strategy for your goals can be achieved. One strategy is one of them is to choose a generator that is suitable for you that allows your goal may be achieved. Generators can include insurance, or other investment instruments.
3) Implementation in accordance with the time available and your risk
When it's time you see your goals, the sooner you start the better the results.
Example: Want to raise funds amounting to Rp 500 million for the college your child when she was 18 years later. With an estimated investment return of 10% per year, then takes the savings every month for USD $ 643,848,000 when you start preparing it at the time of Children 2 years of age. But when you put it off and just starting at the age of children 10 years old, then you should set aside funds every month amounting to 2,932,763. This means that you quickly start a fund that you set aside of course lighter. Remember Time is the friend
You are in investing.
4) Monitor and conduct periodic evaluations
Once you've invested, the next step is to monitor to match the direction of the goal. Perform the evaluation as well so what is the goal could be achieved.
5) Revision of the strategy and planning
You can make revisions at any time on strategy and planning that you already use. This revision is intended to keep the financial goals can be achieved on time, or can be used to accelerate the time of achievement.

Benefits of Financial Management
Financial Management provides direction and meaning of the placement of your financial decisions. This gives you the sense that how every financial decision you make influence to other areas of your finances.
For example, purchase insurance products can help you to secure your assets or income potential, so that you are in the works will be more peaceful, and family that you love will be guaranteed financial. By looking at each financial decision as part of a whole, you can consider short-and long-term effects on your life goals. You also can more easily adjust the changes in life and feel more secure that your goals are still in line.


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