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| Financial planning must be well-prepared. (Foto: Istimewa) |
Entering the end of the year, financial planning and management must go. Financial planning must be prepared as well as possible, either individually or collectively. Elementary school-age children even need to arrange their savings and set targets to manage their financial matters.
Chalimatuz Sa’diyah, S. E., M. M., our management department lecturer from the Faculty of Economics and Business, delivered the idea. She said that financial planning must be done from an early stage. Chalimatuz even noted that primary school students must be instructed on managing and using their money.
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She said, “When the kids are given an allowance by their parents, they should consider whether the money will be fully used for buying snacks, stored, or even donated.”
This skill of financial management must be honed as time passes by. Furthermore, Chalimatuz even divides it into several stages. Initially started from being fresh graduates who already own income, they usually freely use their money to have fun. They, whereas, should prepare a few savings to anticipate unexpected things in an emergency.
Chalimatuz explained, “The second stage is when they are married. Since there will be new necessities needed to think about, a new strategy is necessary. Next, in the retirement stage, when feeling whether property is enough or not to fulfil their daily life, a preparation for productive assets, like building a boarding house, should exist.”
Concerning saving and investing, she asserts that it should be done in the beginning, not at the end, by waiting for the rest of the current income. In her view, if saving and investing are done in the end, it cannot give maximum results.
Interestingly, Chalmiatuz also shares tips for effective and efficient financial planning. It starts with understanding the level of personal finance, and it is necessary to ensure that expenditure is not more significant than income. Then is allocating funds followed by financial records, so it will not be out of set fund allocation.
She added, “If we have debt, pay it off soon, because it will influence our finances. If it can be restructured, do it soon, or if we cannot, we have to suppress other financial allocations, so we can settle debts more quickly. Don’t forget to also conduct an audit even though it is only for personal finance.”
The last is to plan for the long-term or short-term. For the mid-term, to save money in an investment instrument, which can be withdrawn anytime, can be an alternative like ordinary savings or fixed-income funds. However, saving money in ordinary savings can risk inflation. Another choice in the mid-term is to invest in gold.
She ended her statement, “Gold is also called a safe haven asset due to its fixed or increasing value even though the market is not stable. It will stabilise its owner’s wealth, not increase their wealth. Meanwhile, in the long-term goal, gold can be invested for stocks, lands, and houses although their fund disbursement is long to wait for.” (imh/rev/wil)
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