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This step is done with dreaming. Yes, you are not wrong, dreaming! Ask in your heart, whatever you want in life. Jaguar? Five-star apartments in the area? Defeating the socialite to a number of shoes, clothes, and branded handbags? or even a honeymoon to Paris?
Well, if it is, wake up from your dream to see the reality if all your dreams are in accordance with the conditions of wealth and income? If not, go back to dream. However, this time with a more realistic dream. Do not forget to prioritize the things where you want to get in first.
One thing to remember, besides the things that please you, put your priorities in emergency funding needs. Emergency fund? Moreover, is it? Emergency fund is a fund for the emergence not you might expect, such as the cost of inpatient care in hospitals. Surely this is not expected to happen, but it never hurts to watch such proverb “willing umbrella before it rains”.

Categorize your financial needs
This step is easy. Simply classify your needs based on the time period. Period is divided into three, namely short-term needs between 1-3 years, medium-term needs between 3-5 years, and long-term needs of more than 5 years.

Identify the type of investment that fits your needs
This step is quite difficult to do, because for some of you, this is nothing new. You can learn with the help of relatives or friends who have planned your finances well, hire a financial planner consultant, or you can learn it on this site, on the type of investment.
Once you understand the benefits of each type of investment, choose one that best suits your financial needs.

Choosing Investments to Fit Your Needs

After studying the types of investment above, the steps you must do is know the benefits of all types of investment. Each type of investment has some distinctive characteristics, namely the potential yield obtained, the level of investment risk, investment time period of an ideal, easy to dilute investments, and the amount of capital needed.

In terms of ease to dilute the return on investment, asset financiaI easier to sell than real assets. While the terms of the investment period, investment in real assets and financial assets divided by 3 to suit your needs.

For your long-term needs, shares and property is the appropriate type of investment because it provides the potential for high growth in investment returns. Bonds are a suitable investment for your medium-term needs because it provides coupons regularly. Meanwhile, for the short-term investments, products such as savings banks are the most appropriate financial products.

Once you understand the benefits of each type of investment, choose one that best suits your financial needs time period. In addition, you should consider other criteria that you established to make investments.