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In this article I want to say that after we do an evaluation of income next step is to do financial planning to meet future financial needs. Before we discuss it, we want to answer a few questions related to past articles. Many claim that the examples in the last article of income large enough, can we explain that the most important thing is not seeing numbers and behold formulation, the key is not the amount of income but the income calculation to apply formulations that fall into a reasonable income conditions.

So if the formulation applied the final result is the potential increase in assets. Once again that the potential increase in assets is not dependent on the size of income but place the position of your income in the range of reasonable profit corridor to the ideal, to count please use a formula that can be read in an article earlier.

The following questions from readers is how we make savings?
There are simple tips that easy but it requires self-discipline is make a list of needs and not wants. Eg children’s education needs, very much if parents forced to pay high fees at a private school while the amount of income is just barely, be wise to educate their children in schools of the country.

In this case the private school is not the desire of parents needs, otherwise the public school is a necessity rather than desire. So then make a scale of priority needs and desires that can lead to savings.

So now let us enter the next stage, after an evaluation of income and make a list of priority needs and desires of the next stage is to make the calculation of quantities that need. The first step before doing the calculation you need is grouped into 3 (three) categories:

• Short term need, goal achievement <3 years;
• Medium term need, achieving the target 3 to 5 years;
• Long-term need, goal achievement> 5 years.

After conducting further grouping is to calculate the huge funds needed at the time later, use the calculation method ‘Value Time Money’ or ‘Time Value of Money. Funds must be available in the year 2025, the time available to prepare these funds are calculated from 15 years today. Do not forget to calculate the increase in funds each year use the amount of the average inflation rate in Indonesia (data obtained from the Central Bureau of Statistics) multiplied by 1.5. Why do so because based on our research, education cost increases exceed inflation anywhere in the country.

Then where do I put the investment fund for the education?, It would be wise if you are able to invest properly and avoid speculation. The first step is to make protection of wealth (wealth protection) prior use of traditional insurance with the type of Yearly Renewable Term (YRT) to protect your family if you find that your age (sorry) it was not long enough.

Why is placed on mutual funds? This must be done for those who are busy and do not have sufficient competence to trade shares directly. Excellence placement of funds in mutual funds is that you do not have attempted to monitor the investment effort every day because the mutual funds managed by Investment Managers who have passed the test of competence in his field, he served for monitoring the day to day. Like a driver in question has a license (Driver’s license) the right to drive sophisticated enough so that the risk factors become smaller.

But for those who really like to invest in shares directly, not really interested in mutual funds, for these groups is essential to conduct training in the field of stock trading in advance, so that they can perform well in the stock analysis and technical fundamentals in order can suppress the existing risk factors. Do not ever make the stock trading without a good training because you will fall in speculation and not investment.

Boundary between speculation and investment is very thin. To avoid speculation and you absolutely must have a sufficient competence. This is also in accordance with expert input from partners in the field of stock analysis Wealth Acceleration Seloaji named Anton who said that good training will bring you to a qualified investor, so the risk can be managed well and are able to maximally suppressed.

Our advice to those who make direct stock investments should not automatically put 100% into the investment portion of the investment portfolio of shares, but can be done regularly and gradually increase. Because of the success nevertheless requires experience and is a learning experience.

So true success is the result of learning. Learning without success to chance and coincidence is the biggest part of the speculation. So good readers make wise investment not speculation.