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Posts Tagged ‘Financial plan’

Life as a single mom single mothers alias is never easy. As a single mother, you have the same financial burden to others, plus you do not have a partner to share the burden.

You must provide your family and your finances for yourself, so it is important to be smart to manage your finances.

The following financial tips that can be adopted by single parents, so you are more confident to face your financial future

1. Make a Budget

Every person, whether he is single or married, need to plan the budget for better financial management. However, if you’re a single mother, it is necessary for greater financial plan for your income must be distributed for various expenses.

So it is more important important to you are more careful in spending the income. A single mother needs to have a household budget plan and discipline in accordance with these budgets.

2. Creating and Starting Investment Plan

When creating a household budget, do not forget to allocate any funds for savings each month. This method is known as “pay for yourself first”, which is included in the funds for yourself in the list of monthly expenses.

These savings should be included in a less risky investment because as a single mother, you can not take too much risk because you are the financial resources of the family.

3. More Financial Literacy

The biggest mistake that may be made by women is lack of knowledge about matters related to financial planning. Educate yourself by attending seminars, workshops, including discussions about smart investing and financial planning. It is important to ensure you are on the right track when making financial decisions based on information and knowledge they have learned.

4. Prepare Emergency Fund

As a single mother, the more important thing now is you have an emergency reserve fund that is safe for a few months of living expenses. Some financial experts suggest this, as there are additional savings, it also provides savings for living expenses at least 3 months for backup in case something happens, for example, you lose your job.

These funds invest in less risky investments so that one day you easily withdraw when something unexpected happens.

Other emergency preparation is also important, especially health insurance and disability insurance. If you are the main source to support children’s education, then you need to ensure adequate insurance to fund your children’s education.

5. Start Retirement Plan

The time will come someday retire. Seingga important for you to begin to plan for retirement, regardless of how old you are now. A woman must take into account life expectancy when planning for retirement because there are statistics that say women have a longer life expectancy than men. The best thing to do is start saving and investing money in earnest from now on.

6. Children and Money

Teach your kids about money, and so the money can encourage the spirit of a man, how the money we need to make choices and how the money may be able to bring us into line yan wrong if we are not careful to handle it.

Your children will always be afraid to think what would happen if you as a mother died. Explain to your children about your financial plans, units of investment, insurance or inheritance. All this information can give you confidence in your kids about the importance of financial planning in the future.

Conclusion: as a single mother, you must have a financial plan for you and your children can have a better future. If you do not have a financial plan, this is the best time to start making plans. Get started now! Do not waste your time anymore for the sake of the children you love.

Happy mother’s day ….

Achieve Financial Goals

Okay, after determining your financial goals. The next step?

Well acted. Try to achieve all the objectives it.

First, Create a financial plan. Write each action that you can do to achieve every financial goal.

Second, create a budget. This is the foundation of every financial plan. With budgets, you can identify items of income and expenditure. Also can see the flow of money and the remaining income (disposable income). Remaining income is money left after shopping. Figure income minus expenditure figures (for bills, shopping, cost, insurance, etc.), the result is that your remaining income. That money is then you can allocate to savings or investments.

Consider insurance. Insurance to minimize financial losses. Who knows you’re out of luck, then something unexpected happens (and usually bad).

There are many types of insurance, but whatever you choose, make sure adequate number of dependents. Equally important, understand the rules and policies of insurance companies. A time to read the points that are usually printed in capital letters to small-sized pages and pages of it. Be patient and be careful while reading and tracing it one by one. Make sure you know what situations are covered, where and how to make a claim, as well as anything that could thwart the claim.

Goal Setting Personal Finance (Family)
Personal Financial Planning

Why do many people who have financial problems? The main reason is because they do not plan how they will use the money they have. Important element in good financial planning is the financial goals are clear. There are 2 (two) factors we must consider in setting financial goals of the duration and type of need.

To facilitate financial planning, based on the time period we can divide the financial goals of 3 (three) types:

• Short-term goal that requires only 1 (one) year to achieve it (eg saving to buy a laptop). Some short-term goals can be repeated every year (for example, have the money for a vacation).

• Medium-term goal that requires a period of 2 (two) to 5 (five) years to achieve (eg saving for providing funds down payment (DP) to buy a house).

• Long-term goals that take more than 5 (five) years to achieve (eg
•  pension plans).

While based on the types of needs we can split the goal fulfillment of financial goals:

Purchases of consumption goods is frequently done and quickly consumed. Examples are food and other consumer products such as soap and sampo.Walaupun relatively low cost of consumer goods but its accumulation value per year is quite large.
Durable goods are items that are rarely purchased and expensive. Most durable goods, like cars, used more than 3 (three) years.
Intangible goods are goods that can not be touched but it is important for a person’s life and happiness. Examples of intangible goods include health and education.

After setting financial goals, we classify our financial objectives based on both the above categories. Classification of financial goals will help us to define our goals clearly so that we can plan personal finances (family) we are fine.

When the financial plan, start with a focus to your financial goals. Whatever it is, not a problem. It’s OK if you really want to be a millionaire at the age of 30. Importantly, with set goals, you can design a plan that fits, and the plan will help you approach or even reach it. You may also specify more than one purpose. Often dreamed, who’s banned? But remember, not everyone can make all his dreams real. That’s why you need a priority.

Of all the goals you have set, select the most important. Distinguish between needs and wants is also yes. Divide, and grouped into three priorities:

• All you have to have
• A lot of fun if you have
• That did not matter if you do not have

Identify the Key Events in Life

Try to identify the key events of what will happen in your life. At each step, financial considerations must come coloring. There are always options, there is always the decision: that money spent for nothing; how many will be issued; how much to save since now.

Different people, different of course also the leap of his life. But generally the most important thing for most people is the stage when they should:

• work
• Committed to long-term relationship or marriage
• Buy a house
• Have children and build families
• pension

No one can be sure the future will be like, but you also need to identify events that are less predictable. You may suddenly want to change career direction. Together with a partner or reduced income due to one of them stops working or die. Or maybe you retire early, could not it?