4 STEPS FINANCIAL PLANNING

Ideally, since the beginning of income, every person has a financial planning, from short term to long term. That way, the productive period does not end in vain, because the efforts that have been done to fruition when the productive ends.

"Financial management is as important as health care. Both of them must be considered to be earned in the work that we can enjoy and use for us as much as possible," said Dwi Kisniarti, Senior Vice President, Head of Wealth Management Commonwealth Bank Indonesia, the press release.

Dwi suggests, there are four steps you can do to manage your finances.

1. Understanding income and monthly expenses.
Before determining priority budgeting with monthly payments as a form of financial planning, you need to understand income and expenditure every month. Furthermore, it should be realistic. But it does not mean not being an investment because there is no more money.

"Start with what we got. With the theory of compounding interest (compound interest), better start faster with smaller amounts, but regularly, rather than wait until the accumulated amount more to start investing," he explained.

To begin with do not need huge funds. Everyone can do it. For example, young investors can invest in mutual funds of Rp 100 thousand / month. You can use AutoInvest system, which cuts funds from a savings account on a regular basis to facilitate young investors investing regularly with ease. Additionally AutoInvest train system also minimizes the risk of loss of discipline if done long term.

2. Defining financial goals.
What are your financial planning goals? Either short term or long term, set clear goals. Investments used to achieve the medium-term, while short-term savings or reserve funds are / emergency. Before investing long-term, first prepare a reserve fund. Reserve funds that should be available is six times that of the expenditures each month.

3. Reduced risk.
Risk in investing is inevitable, but there are several steps to reduce the risk:
* Diversification: In choosing the type of investment, choose which ones have low correlation, or different movement. So when return one type of investment to fall, it will be supported by other investment returns are rising.

* Invest regularly: what matters in investing is not a huge amount, but it could be a number of smaller but regularly. And by investing regularly, this can minimize the risk.

* In investing to get the most optimal return is to buy at the cheapest price and sell at the highest price. But no one else can predict with certainty when prices will go up or down. Therefore, rather than just buying at one time, where there is a chance the price could still go down, we'd better buy at the regular time in which the average purchase price we will be cheaper.

For you are a bit "extravagant", to facilitate disciplined investing, funds should be specified for dinvestasi, in direct debit each month. So although our payday cash runs out end of each month, we've been able to feel comfortable that the investment we've met.

4. Finding the right information.
Before investing you should really understand and feel comfortable with selected products. Do not be shy to ask and find out as much information as possible.

Financial Activities Expo Forum (IFEF) 2012 at the Jakarta Convention Center last October 5 to 7, 2012, could be one way for you learn a variety of financial products. You can gain knowledge of the event.

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