Creating Financial Overview
You know how to make money? It’s easy. You know how to manage the money? Now! Can be more difficult to mention if you sandwich generation members who have to bear and care for children and the elderly.
The solution, sit down with your family. Describe your finances clearly and honestly.
Make a list of the largest expenses that exist today or in the future. Include costs for each expenditure. Starting from the student exchange program your child to your mother’s heart surgery. Starting from buying a new car to replace the roof. Calculate how much expenditure can be covered by external sources such as insurance. Factor all additional expenses that you can expect. For example, you might just need a mother was hospitalized for several more weeks if there were complications. Add up the total. That picture of your family finances.
Determine and Routine Review of Financial Goals
Determine your financial goals alone. When do you want to achieve financial freedom? In 5, 10, or 20 years? Draw a map, place the achievement points. Routinely check your real achievements, compare with the dots on the map.
If you fail to meet the 2 points in a row achievement, it is likely that your target peg is less realistic. Or something unexpected happens and disrupt your plans. Means it’s time to draw a new map!