I am in my 30ies, do I still need a financial planning? But I only make a minimum wage a month, do I even need a financial planning?

No matter how much money you earn monthly, or your age, and profession, in fact, everyone should have a financial planning.

Why a financial planning? Because without a financial planning, you wouldn’t reach a prosperous life financially. Therefore, the only way to achieve that is by managing money, and making a financial plan.


What Is A Financial Planning?

A financial planning is a strategy to reach your financial goals and make your financial dreams come true. I believe that we all have dreams and goals to achieve.

On top of that, our resources are limited, such as time, energy, and money.


Why You Need A Financial Planning?

Maybe you say, I still can make much money even without a financial planning. But the fact is, there is a big difference between those who make a financial plan, and those who don’t.  


The Difference of Those Who Make A Financial Plan and Those Who Don’t

Those who make:

  • Know the cost of living expense from a budget
  • Having clear goals for saving, and can be discipline in saving when receiving income monthly
  • Have enough income to fulfill daily needs
  • Have a secure finance even when unpredictable events happen


Those who don’t:

  • Don’t know how much of the living expenses
  • Having minus income
  • Saving is made after spending. Usually no money left to be saved
  • Usually feel or think that they don’t have enough income
  • Get panicked, and looking for a loan right away when unpredictable things happen


So, which group do you belong to?


6 Benefits of Financial Planning for You and Your Family

Why you should have a financial plan? What are the benefits of making a financial plan?

Those who plan their finance:

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#1 Are Easier to Reach Their Financial Goals

With a financial plan, such as a monthly budget, you can know primary, and secondary expenses to make each month.

Moreover, you can anticipate the expenses, and make proper calculation for saving, investment, and fund.   

When a person doesn’t make financial plan such as budgeting, he/she usually will experience that the money run out quickly.


#2 Know Allocation for Expenses

No matter how much income people have, if they don’t control their expenses, they can’t fulfill several needs. For those who have small earnings, even making allocation is much more needed.

When you know the spending cost, you can adjust them to your income.

This can be done by creating a scale of priority such as the primary, secondary, and tertiary needs.

Also, set the scale based on its period, whether in present, future, or for unpredictable time such as an emergency situation.


#3 Can Protect Family Members

As parents, when they make financial plan, it would be easier to cover for education fees, for example. They make a plan such as for enrollment fees, monthly fees, tuition for a new semester, saving plan for entering university, etc.

In emergency situation, their finance is secure because they have allocated the money in emergency fund, and have an insurance when a family member get sick, or get a laid off from job.

When a family have a financial plan, they can control their budget. And can manage the income based on the scale of priorities within the timeline.


#4 Can Minimize the Risk of Having Too Much Debts

In time of emergency, such as in this Covid-19 pandemic, many family members get sick, and didn’t have enough money to cover for a medical treatment.

This will get them panicked, and looking for loans from relatives, or close friends. Or other financial pitfalls that force them to borrow. In the end, they just add up more debts.

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But, for those who have a financial plan, the risk to borrow money can be downsized in the midst of an urgent situation. They won’t be panicked, because they make a plan for emergency fund, and insurance.


#5 Have An Emergency Fund

As mentioned in point 4 before, those who have an emergency fund, have the money they need when urgent situations take place. As this can happen to anybody, it is necessary to plan ahead for an emergency fund.

A risk to pile up debts can threaten one’s finance, especially if he/she borrow from a moneylender who charge extremely high rate of interest (loan shark).

This can happen when a person need a lot of money in a very short time. It get him/her panicked, and finally seek loan from a loan shark.


#6 Can Be Healthy Financially

Cash flow and balance sheet are two tools which ones can identify what parts of their finance that needs improvements.

This can only possible by making a financial plan that includes not only financial goals, saving, and investment plan, but also debts (liabilities), total net worth, and other parts of financial plan.   

Families or those who have a financial plan are able, and easier to improve their finance condition to be better.


After knowing these advantages, hopefully you’ll be able to make your first personal financial plan, and start manage your money better.

Before we continue, I do recommend you to read Make A Plan And Get Your Financial Dreams Come True, a book that is helpful in make financial plan, and managing money better for every ages, and profession.

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The General Knowledge in Financial Planning

Even if you are not familiar with financial planning, you can learn one by one its basic knowledge, by applying them on you, and your family.  

Though the scope of financial plan is wide, here are some knowledge to help you get started.


#1 Financial Reports

A financial report record your income, expenses, asset, and debts. There are two part of it.


#1 Cash Flow

All your monthly income, and spending are recorded in a cash flow. Some people face difficulty when it comes to manage their cash. Usually questions such as what I should buy first, a house or a car?  How can I save money when my debts are stockpiling? appear.

Commonly, those who ask such questions have an issue to determine a scale of priority over their spending.

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You can begin by making a monthly budget, and expenses, to better manage the cash flow. For the budget plan, make priority from the most to the least important needs. Notice also the time. Are your needs for the present, future, or urgent time?

For example, your monthly rent and groceries are more important and need to be paid now rather than traveling spending.

Second step, in cash flow management is making notes of your daily expenses. If you still confuse in making a budget plan, and expenses notes, use Finansialku application. This feature is easy, fast, and very helpful. Download on Google Play Store or Apple Apps Store.

By doing this, you are one step closer to improve your finance.

#2 Balance Sheet

All assets, and debts (secured, and unsecured debts) are recorded in a balance sheet. With the data in a balance sheet, you can plan your finance better.


#2 Emergency Fund

As it has been mentioned in point #4 and #5 before, having an emergency fund is necessary for unpredictable or urgent situations, such as health issue, accident, or losing job.

The amount of this fund depends on a financial condition, and status (single, or married). The ideal amount of emergency fund is in the following:

  • For single: total 6 months of expenses
  • For a marriage couple: total 9 months of expenses
  • For a family with child(s)/dependent: total 12 months of expenses


#3 Productive and Consumptive Debts

Productive debts is ones used to by assets to make money. Buying a house (KPR), and rent it can create an income.

On the other hand, consumptive debts are the ones used to buy items that can’t make money for you, and just add more spending cost. For example a credit card debt to buy a new smartphone.

Ideally, you can reduce consumptive debts, and pay down the productive debts as soon as possible.

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#4 Insurance

There are always financial risks. Therefore it is necessary to protect your finance with insurance. But, know first the risk management, and what should be insured.

Here are some types of insurance you need to have:

  • Life insurance: to give reimbursement coverage for economic loss, when an insured die.
  • Health insurance: to protect from health risks.
  • Home insurance: to protect a house if there is any damage or, stealing.
  • Vehicle insurance: to protect a vehicle if there is any damage or loss.
  • Travel insurance: to protect an insured from any issues happened during a trip.


#5 Investment

As long as you can manage your investment, you can gain profit. Investment products today vary from stocks, mutual funds, peer to peer lending, and other instruments. Each of them have its own possibility for profit, and risks.

If you want to keep and make money work for you, investment is a great tool. It is a means to serve your financial goals and needs.

So be sure you set up your goals and know your needs before making any investment decision. Know how to manage the risks of investment is also important.

After that, you can begin to read all of these e-books to know what is the instruments that can help you get your goals.


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#6 Know the Spots Where You Can Lose Money

In fact, there are many cracks where can cause you to lose money, such as inflation that reduce the value of an asset.

Find out things that make you to lose money. By knowing those cracks, you can be more careful to avoid or solve them.


#7 Know the Mistakes in Financial Decision

There are challenges and difficulties you may face in financial planning. Mistakes can be made in the process to reach financial goals.

But learn from those mistakes, and improve your daily finance can help you reach your financial goals, and freedom.


#8 Minimize Tax

Personal taxes are financial obligation you need to fulfill. You can learn the strategies to reduce taxes in financial planning, or consult with a financial planner.

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#9 Choose Good Partners

Money problems tend to create conflict, and can ruin a relationship.

In planning your finance, you’ll deal with many people who are related to your financial plan. They can be insurance, or property agents, business partners, or a financial planner.

Therefore you need to choose the right partners who are credible, and professional, since conflict, and fraudulent activities can happen because of money.



Having a financial plan truly can make a big change, and impact in your life. Regularly evaluate your financial plan to adjust it with the current financial condition, and needs.


Hopefully, you can improve your personal and family finance better by making a financial plan. And please tag your family, or friends who also need this information.

If you have any further questions about financial planning, feel free to talk to our financial consultants who are ready to help you.  


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