Money and young age is a deadly combination, without the intervention of discretion. because although the money and young age giving greater opportunities to enjoying life in practice is not an easy task.
Young people almost always can’t do two things that really are very important: a) Patient; b) Alone. They must always do something, want what they want from others.
The reason behind all this excitement is the attitude that went along with so-called contemporary or trends. When a young man defines success as “buy what others buy” it will create big power which soon pull this age group into the consumerist culture. Can they fight it? With financial planning, young people can.
The critical point called marriage
The world is crammed with romance story of princes and princesses who live happily ever after, to make society obsessed with marriage. Even the girls are holding their baby doll as if mother. Boys? Oh … they are fun to play anything except be a father doll.
Women may be realized as an adult, that asking a man to marry the same as telling a cat a bath!
Many were not aware that the issue of marriage is the major financial issues of young singletons. This is a critical point that will change not only the status of a person, but how he should manage the finances.
Unfortunately. the marriage, especially in our society, is something that is considered to be automatic, it means you must know itself later. Including finances, later arranged after marriage, just like our parents did.
Instead of financial planning in preparation for married life, young people just waiting for the marriage, taught it to them. Though outside careers, job-office, and business, then young people minds full of a huge boost – their opposite sex. With the cultures of our society, this meant only one thing that is the marriage.
Singletons period is generally shorter, because the passion young people makes them difficult to live alone (no one who can). Unfortunately the financial preparations towards family life is not well planned by women and men.
Consequence, young singletons tends careless with their money because it does not integrate the next phase of life, namely family life with their finances.
• Emergency fund: collect savings fund amount 3-6 times the income per month. The goal is to anticipate the possibility of temporary interruption of income due to termination of employment (FLE) or due to business conditions are a source of income to decline. If young people can allocate 50% of his income to establish an emergency fund then within 6-12 months will be achieved quota.
• Funds of marriage: the savings fund collected a number of 6-12 times the income per month. The goal is to anticipate the possibility of getting married any time soon. If young people can allocate 50% of his income to establish a marriage fund then within 1-2 years will be achieved quota. Do this after emergency funds collected.
• House: collect savings fund a number of 24-36 times earnings per month. The goal is to pay the payment on a house (or car down payment) and costs about buying a home. The assumption that most people can’t afford the cash for his home then they take out a loan (mortgage) banks. If young people can allocate 50% of their income for home down payment, within 4-6 years will be achieved quota.
• Retirement: pension plans follow the debiting a percentage of 5% -10% of income per month was the first time to work (probably age 22 years) and do continue to age 55 years when entering retirement age. Accumulation of 33-year period will generate hundreds of millions, even billions of dollars as initial capital retirement living.
• Health: buy health insurance – only if the company where work does not bear the cost of treatment. This is especially true for professionals and businessmen who bear its own costs of their health. Allocate 5% -10% of annual income to pay health insurance premiums.
If calculated on a conservative with a maximum quota, the whole will require the allocation of 50% -60% of income for savings and time of 72 months or 6 years years to establish an emergency fund (1 year), funding a wedding (2 years) and fund houses (6 years ). You may use the minimum quota if you want more light. If young people start work aged 22 years, he will be ready financially married at the age of 28 years.
By implementing the five priorities above, young people are automatically prepare their old age pension fund and be able to anticipate the financial risk with emergency funds and health insurance.
Inability of financial worries that often lead to delays in marriage can be avoided. Because each fund can combine their wedding and home funds as initial capital into the next financial life cycle.
