3 Basket of Life Financial
Everyone must work / trying to generate revenue. Earnings will be used to meet basic living needs of each. Necessities of life will not be the same for all people, because the standard of living of each person is different. However, it will have in common is the fulfillment of life needs are met, then the rest will be saved.
If you ask people what they do to their savings, but be assured that the answer must be diverse. Why? Because they are saving to meet life goals each. Anyone wants to have a house, someone wants to send their children there who want to have a luxury car, there are only want to help parents. Whatever the purpose of saving, an outline can be grouped into 3 baskets of life as follows:
First Basket (I) - Security
This basket contains an emergency fund, life insurance, health insurance, retirement savings and other similar savings.
This basket is the first and foremost. Every person should have to fill the first basket I was. But the fact that many people are ignoring the basket I was, they would prefer to directly fill the basket II. They do not realize that a great many risks that must be faced by someone in this life. Consider the illustration below:
There are 2 people that Mr. Not Ready and Mr., both working in the same company. Mr. focusing savings Ready to set up an emergency fund, while Mr. focusing not only for investment only. After some time they already have enough savings, suddenly the company they work through problems that have to do mass layoffs. Mr. Not Ready and Mr. including people affected by these layoffs. We’ll see how it affects their lives.
For everyday purposes, Mr. Ready is not too problematic because he had prepared an emergency fund sufficient to anticipate this. Now he’s focusing on a new job, and still allows for Mr. Ready to choose a job according to him. In contrast with Mr. No, he is now a headache thinking about how to meet the needs of everyday life. Currently Mr. invested his savings in the form of property and can not sell the property easily, so Mr No need to quickly find a job and he will accept any job in order to earn a living.
From the illustration above, you can see why we prioritize I first basket. I was a basket, we are not too concerned with the return or outcome but rather focuses on ease liquidated in times of need (liquidity).
Basket Second (II) - Growth
The second basket was the saving of property, business, investment and savings like.
In this basket a person begin to expect that what is saved will grow into more. There are many ways to develop your assets.
Basket Third (III) - Luxury
The third basket was aimed at saving the luxury, like the roads out of the country, luxury cars, luxury homes, executive clubs, and savings are intended for other luxuries.
If you fill this basket make sure that you have filled in the basket I and II. This basket is a basket of costs, there is no growth in this basket. Someone must have had financial stability or a new financial freedom he can fill this basket, if not be very dangerous.
Your future is not only determined by chance, but choice. Thus, in selecting bijaklah and build your financial life with full of wisdom.
Tags: financial freedom, insurance, Investment, luxury homes, Property, Saving, security