4 Tips For Managing Finances To Be A Family Financial Hero

Family Finance (Pixabay)

JAKARTA - The financial hero is tasked with protecting the family's future by securing existing assets, assets, and savings and that are being collected for loved ones. All financial instruments basically have risks, just adjust to the risk profile of potential investors.

He also reminded that the risk in question is not simply because of being tempted by high interest rates from fraudulent investments and then losing the money that has been invested.

This risk is that there is a potential loss of capital reduction because the yields obtained may not be as expected due to local and global economic conditions.

According to Paculty Head Sequis Quality Builder Sequis Training Academy of Excellence Fandi Murdani, so that someone does not wrongly invest in a financial instrument, make sure the legality aspects of these financial products and companies are clear and correct, namely institutions that have obtained business licenses and supervision from regulators that are in accordance with their business fields.

Quoted from ANTARA, Saturday, November 11, someone also needs to ensure that they fully understand the rights and obligations as customers, know the benefits, costs, and risks related to the products purchased.

Then, if you already have knowledge about financial instruments, have determined investment goals, and want to develop existing assets in order to build a prosperous family future, here are tips from Fandi how to become a family financial hero:

1. Communicate the conditions and financial plans The first step is to communicate financial plans with a sufficiently old couple and family member regarding the condition and financial goals of the family, including plans to apply for a loan fund, sell assets to buy investment instruments.

"Don't decide on your own family's financial plans. It's a good idea to hear opinions and suggestions from family members for the common good," said Fandi.

It is better, he continued, that they also know about the family's plans and financial condition so that they can both determine what needs must be met, and what can still be postponed.

How much debt obligations are owned and are there plans to develop family assets. Thus, family members can take part and feel responsible for maintaining and increasing family assets.

2. Manage debt carefully Smart debt management is the key to achieving family financial goals. Avoid large amounts of consumptive debt exceeding the recommended debt tolerance (consumptive debt of a maximum of 15 percent of the total income) because it will increase the financial burden and burden of the mind.

"It's better if you get cash from bonuses, THR, or income from additional jobs, take advantage of it to accelerate debt repayment," Fandi suggested.

By slowly reducing the debt burden, a person and his family can freely carry out financial planning.

3. Prepare educational funds. Educational planning for education funds is needed because the cost of education continues to increase inflation every year. The risk of parents' lives also increases with age that can affect children's education plans.

Therefore, it is very important for parents to prepare a baby education plan up to the tertiary level.

Fandi suggested allocating education funds to financial instruments that are maintained until the child's education level is completed despite unwanted risks to parents.

For this reason, when deciding to take education insurance, it is very important to understand the benefits offered and also estimate the amount of education funds that will be needed so that it can be well planned.

4. The protection of health insurance and life insurance Health and life protection must be part of financial planning to protect family financial conditions from risks that can occur at any time, such as critical illness or death which requires large amounts of money.

By having health insurance, as a family earner, one does not need to worry about the high cost of medical treatment because it will be covered by insurance companies.

Fandi believes that life insurance is useful for minimizing financial risks when there is a risk of life in breadwinners.