Stages of investing for young families
Finances when you are single and have a family will definitely be different. In terms of fulfillment, previously alone, now must be divided between spouses and children.
Even after having a family, their daily needs are increasing, but investment is still mandatory. Of course from the monthly money.
Investment goals also vary. When single, the purpose of investment is to travel, get married, go on a pilgrimage. If you are a family, the investment goal is to buy a house, fund children's education, pensions, and others.
If you are married and want to invest, here are the steps in planning a family investment.
First Stage
In the first stage, you need to sort the money based on the family's needs in a month. There are several types of needs that must be allocated at this stage, including:
- Daily Necessities Cost
Starting from the budget for shopping for basic foodstuffs, paying bills for water, electricity, telephone, and internet. Paying debt installments up to child tuition fees.
Prioritize money for these routine needs. Do not let anyone forget, so that these routine costs are met. Ideally 30 - 40% of salary or income.
- Emergency Fund Savings
This is important, set aside money for an emergency fund . So if you suddenly need cash, in an urgent situation, you have not been paid, an emergency fund can be a lifesaver.
Set aside at least 10% of your salary for emergency fund savings. Keep emergency funds in a separate savings account. Let's not be disturbed or tampered with.
The emergency fund portion is ideal for those who are married, have more than 2 children, around 6-12 months of expenses.
- Child Education Savings or Insurance
If you are married, you should start thinking about your children, especially their future. Even though they have not been blessed with children, there is nothing wrong with preparing for the cost of children's education from an early age.
Set aside about 10% of salary for children's education savings or education insurance . Choose according to your needs and financial capabilities.
- Retirement Savings
This is often overlooked, preparing a retirement fund . You and your partner should also think about old age.
Of course you don't want to depend on children when you grow up. Therefore, it is necessary to set aside money as retirement savings. You can place this retirement savings in DPLK or retirement savings.
- Paying Insurance Premium
His name is already married, not only you who must be covered by health insurance and life insurance, spouse and children too.
If you already have BPJS Health from the office, you can complete it with private health insurance. Which will guarantee the cost of care and treatment of diseases that are not covered by BPJS Health .
Second stage
After the main needs are budgeted, the next financial plan is to invest. Investment here depends on your goals.
Set aside about 10% of salary for investment. It can be placed in Government Securities or bonds, stock investments, mutual funds , peer to peer lending, deposits, gold, or property investments, such as land, houses, and others.
In addition to considering your investment objectives, you must also recognize your characteristics. Are you the type of person who is afraid or looking for safety, or dares to take risks.
What you have to remember is that the return on investment is directly proportional to the risk. If an investment instrument has a high risk, the yield or profit will be large, such as stocks and vice versa.
Third phase
The third stage is how you use the results of the investment. The profits you get from investment activities must be replayed for productive activities, such as opening a business or diversifying your investment into other products.
For example, if you make a large amount of shares, you use the results again to buy mutual funds or gold. Thus, you can minimize losses if one day the stock price is falling.
It can also be the result of investment for business capital, so that it can provide more benefits to realize your investment goals.
Investing Success Tips for Young Families
- Check Financial Condition
Your financial condition will greatly determine the success of the investment you make in your new family. This is certainly related to financial capacity and also the availability of capital to start the investment.
You and your partner need to look in detail at the family's financial condition, including the monthly budget that must be prepared in the finances. If the investment funds are still minimal, then you can tamper with your financial budget and make savings there.
You and your partner may have various habits that are quite draining of money, such as hobbies and activities on the weekends. You can start to organize all of this, so that expenses for non-mandatory needs can be cut.
Although capital is not always the main benchmark in making investments, it is equally important. When you have sufficient capital, you will be more flexible to choose instruments and diversify in the investments you will make.
- Calculate Debt Value
Don't forget to check the condition of the debt you have in your finances. Is the value large or you and your partner have no debt at all. The smaller or minimal the value of the debt, the more secure your financial condition will be. This also indicates that your finances will be better prepared to immediately start investing activities.
However, if you and your partner still have debt, then immediately calculate and see the total amount of the debt.
Ideally the value of the debt should not be more than 30% of your total household income. If it is bigger, then the financial condition is certainly not healthy. Calculate all your debts and start planning to pay them off in stages. Allocate a fixed amount of funds every month, so that this debt can be paid off immediately.
- Know and Understand Well Investment Instruments
If the two steps above you have done well, then your financial condition is certainly ready to start investing.
But even so, avoid investing in a hurry. It is very important to know and study in detail the investment instrument first. Adequate knowledge related to investment will really help you in managing these investments in the future.
Start studying investment instruments that you think are appropriate and in accordance with your financial condition. Make sure you study each of these instruments in detail, including the risks and potential benefits involved. If you already know and understand it, then you will be better prepared to start success in investing.
Discuss with your partner
If you are married and want to invest, discuss it with your partner. Because investment requires commitment from both parties to run smoothly, including in the allocation of the budget for investment. If one of the parties does not agree, then your investment and financial goals will never be achieved. In fact, it causes quarrels and financial problems in the household and leads to divorce. You don't want that, do you?