5 money to be. Understand the 5 pillars of the financial plan.

After working on financial planning for a while, it is understandable that many people do not like financial planning because they often think that it may feel that it is far away, that there is a lot of money, that there is a lot of money, that there is a lot of investment, or that there is a complex understanding of the numbers, but really, it is to "organize the financial life" to let us know what we have today, what we use, what we have to prevent, and what we can achieve in the future.

At the heart of financial planning, you can start by understanding the five pillars of financial planning.

It's like a stable house with a tight pillar.

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Pillar 1: Emergency reserves

The first pole is "life bumper money."

Because real life is not always linear, some months can cost a lot of money, cars, sickness, income stumbles, unemployed relatives, married friends, social taxes.

The emergency reserves are therefore meant to keep us from rushing to borrow, from selling vital assets, and from pulling out investments at inappropriate times.

Generally, there should be at least 3-6 months of required costs.

But if there is a family, a child, a household burden or an uncertain income, it can move to six to 12 months.

This money doesn't have to be risky, doesn't have to be very rewarding. It's important to be safe, easy to withdraw, and ready to use when needed.

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Pillar 2: Hedge with insurance

The second pillar is to protect what we build, underlining the big ones. Many people view insurance as an expense, but in the financial planning sense, insurance is a tool to prevent unforeseen events from destroying their entire lives.

Especially with regard to health, accidents, serious diseases, or the untimely departure of family leaders.

Health insurance reduces the burden of medical expenses.

Life insurance helps take care of the people behind

Serious disease insurance allows a lump sum when it comes to work off or treatment.

Primary thinking, not buying as much insurance as possible

It is bought to fit the burden, the risk and the people we need to care for.

Because a good money plan doesn't just think about how to get rich.

But also to think that if something happens unexpectedly, we and our loved ones will not be too difficult.

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Pillar 3: Retirement plans and property forwards

Pillar three is a long-term view of life.

Many people think retirement is a long way off, but the sooner the truth starts, the less tired.

Because after retirement, work income may be reduced or stopped, but expenses still exist, especially eating expenses, medical expenses, and quality of life expenses.

Retirement planning is therefore not a matter of old people.

But it's about people today who want to live comfortably in the future, not reduce their quality of life.

In addition to retirement matters, passing on property is another matter not to be overlooked, such as making a will, managing a beneficiary, or systematically preparing property for a family.

Because in the end, money is not just used today.

But it should be managed to take care of our whole lives and pass on smoothly when the time comes.

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Pillar 4: Debt and expenditure management

The fourth pillar is to know where the money is leaking.

Many people don't have a problem because of low income alone, but a problem because they don't know which way the money goes out.

Financial planning therefore begins by knowing one's own income, expenditure and debt.

Some types of debt may be those that help build the future, such as home debt, education debt, or well-planned business debt.

But certain types of debt, such as credit card debt, luxury installment debt, or high-interest debt, may gradually devour financial life unconsciously.

The simple core is

Spend less than you can find, and don't let debt grow faster than you can afford.

Once we control our expenses, manage our debt, our financial lives begin to breathe faster. Say goodbye to Pay Later.

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Pillar 5: Savings and investment for goals

The fifth pillar is to grow money.

Saving is the beginning of stability.

But investment is a tool that allows money to have a chance to grow, keep pace with future goals.

Each person's financial goals may not be the same, e.g.

Buy a house, send school children, do dream business, travel abroad every year, or prepare for retirement money.

It is important to know what the goal is, how much money it will cost and how many years it will take.

Short-term goals, such as use within 1-3 years, should focus on safety.

Medium-term targets may take some risks.

Long-term goals, such as retirement, can use investments with greater growth opportunities.

Investment is not gambling.

It is the choice of tools to suit the goals, times and risks we take.

That's it. It'll be too long, but I want you to# Top # Properties tynwealth♪ You can understand the pillars of financial planning that it is not too difficult, we can do it ourselves. Tell us a little about what your financial plans are now, or what it feels is difficult to do. Wait and hear.

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