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How to manage finances well

Many people think that financial management is limited to how to make money, how to spend money, and how to save money. In fact, taking into account that money is essentially just a measuring tool, a tool to carry out transactions in society, there is no significant effect of the existence of money itself. What is really a problem just a fact that in the long term, the finance function is the exponential function.
The benchmark are things happening around human life. Take, for example, such as population growth due to urbanization. From year to year, this process continues to occur with growth, for example, 7% per year.

Well, what's wrong with the urbanization rate of 7% per year? For example, a decade ago the number of urban migrants is 500 thousand people. With a rate of 7% per year, then after 10 years the number to 1 million people. Here we see something called computation time doubles.Calculation of doubling time (doubling time) determines the length of time required to reach double digits. With arithmetic functions, we use the natural logarithm, ln 2. To make it easier, calculated on the basis of one hundred multiplied by one hundred, the results are 69.3 rounded to 70. If we know the rate of 7%, it was meant to be double the required time 70/7 = 10 years.Imagine, urban population doubled every 10 years.  

The same thing happens in many other things, such as rising prices, or inflation, which averaged about 7% - 8% in the last 10 years. In fact, one can not avoid the increase, such as population increase, an increase in the necessities of life - while the world's carrying capacity is relatively fixed.What about the lives of the people who are building the future? Wealth is not increased, it will disappear in the long run. Therefore, the accumulation of wealth is important, to maintain a good life. We need a healthy mind regarding the long-term finances.Accumulating wealth does not mean relying on wealth, but concern for the families and descendants. We are not saying that all would be well and protected if we accumulate wealth, so that we do not need God or others. The whole process requires reliance on God, but with the wisdom of ants that gather in the summer to live in the winter. 

Bamboo Principle 
How does one accumulate wealth? We can learn from the bamboo. Accumulation is based on two principles are closely interrelated and inseparable.The first principle: before growing up, rooted deep into the bamboo. Accumulation of wealth begins by exploring the potential of up to much into that, so that could deliver such productivity needs to grow up. In the process, it may be for some people can not see the results or performance of real wealth. If other trees grow and bear fruit immediately visible, bamboo tree still looks short for a long time.This requires a change in the pattern of the way to see immediate results - instantly got a motorcycle or a car, instantly got home, immediately have the luxury - albeit by way of debt, a way of life that is simple, efficient, and work hard and smart. Note: the more difficult economic conditions, both global and regional or country, we should be more deeply rooted before rising to the top.Thus, the process of accumulating wealth always starts with the question, "how can I be more productive?" Before expecting to see that wealth actually collected. Perhaps we need a higher education. Maybe we need to join the seminar and workshop. Maybe we need better equipment, or maybe we should expand our network or the network. Many practical things we can do.The second principle: building wealth with toll system so flexible like bamboo. Accumulating wealth is not the time, in which wealth can be accumulated and suddenly disappear because of the economy. In this case we need the financial protection functions in the long term, such as insurance. There are various types of insurance, life insurance, general insurance or public insurance, as well as financial insurance also called hedging.All it serves as protection in the segment of bamboo, which is a pillar of strength that bamboo can bend when the wind storm, then back again to its original position. In practice, this principle makes the accumulated wealth has a definite value in the future. For example, today we live with a net worth of 10 million dollars; contract that ensures we make when we retire, we have 10 million dollars. With the passage of time, when we have had a net worth of 100 million dollars, we make sure the contract value of 100 million - that is adding 90 million to the pension fund.The accumulation of wealth is not a matter of time, done regularly over the long term along with an increase in our productive time. We need to build a custom to advance their earnings to the accumulation of wealth, which can be diversified between insurance premiums, investment, and savings just in case. As long as we make money, as long as it did we accumulate wealth.Insurance being a good means to accumulate wealth, because insurance claims including income taxes excluding objects. Thus, at the time of retirement is acceptable, the value is not net of taxes. For that we need to be observant to insure pensions for sure, from a company that can be trusted to manage finances healthy in the long run.In the end, the accumulation of wealth is part of the habit, not a short term project that depends on feelings or whims. Once again, all departing from our concern for the future of our lives: first that we do not become a burden to others, both so that we can continue the prosperity that God gives to the people around us. That is called a channel of God's blessings. 

Setting Spending and Revenue
In practice, implementing the principle of bamboo comes down to adjust expenditures and revenues. It is important to remember that the accumulation of wealth is basically a way to set spending and revenue, not to accumulate wealth. This is not a race of wealth, prestige and luxury of such a penalty which the materialism.Instead, base the self-control, patience, thrift, self sufficient. No one who accumulate wealth by showing off wealth or want more than productivity alone. In practice, this means not continuously replace HP following the latest trend. Do not buy any pair of shoes that look good. Do not force yourself installments LCD televisions because of the advanced stuff plasticity and can be exhibited.We need to remember, the purpose of the accumulation of wealth is to meet the needs of the future that has doubled, especially in developing countries, in a shorter period. If inflation in developed countries average only half of the developing world, the time it takes to become a double is twice as long.If there are any who feel 'wrong' or 'sinful' by accumulating wealth, wealth accumulation bawha remember starting with responsibilities facing reality and trying to be more productive - to give more. It takes faith belief that God wants us to do the good work that prepared him, including providing what is needed by the people around us both in the present and the future. Remember also that if we know how we should do well, but we do not, then we sin because we neglect. 

Shared Prosperity
Doing the accumulation of wealth should be a pattern developing in every member of the community. History proves that societies prosper only happens when each of its members to accumulate wealth. Prosperity is not the result of the work of an organization or government, apart from the ability of the community. If the people of Indonesia to become prosperous and well-being, each of us should be accumulate wealth. The government would only facilitate and maintain order and justice, so that we can all maximize our efforts.In society, the accumulation of wealth is NOT transferring wealth - take someone else's property into their own property. People can become rich quickly by gambling, or by winning the lottery, but in fact it is rich in the more people are becoming poor. Unfortunately, there are still many people who prefer to get rich quickly and suddenly, so there are many who like the lottery, even seeking the power of darkness to bring wealth.Nothing can replace hard work and efforts, diligent and honest. In contrast, each stealing behaviors can destroy the spirit to do a good job. However, if we are all stealing from each other, who really want to produce and deliver positive results? If we accumulate wealth, only to be consumed by people who beg, do not we from the beginning did not want to accumulate wealth?Therefore, we need to understand how we want to accumulate wealth. There are several ways that we can learn.Type accumulated number 1: the development of the neighborhood, raise the value of homes / real estate. While the number of people increases, land can not be added. In the area that is growing well, the increase in value place to stay is a certainty. But, of course, there is requirement of our efforts to protect the environment and improve it.Unfortunately, not all conditions are met. Some housing built without adequate environmental planning, so that instead of increasing, it decreases the value of the wealth there. There is also the scene of the disaster. We see the accumulation of wealth is not merely gather in the exchange rate, but also to maintain and protect.Accumulated number 2: in developing a scalable business and capital / tangibledan together successfully. Thus we build a healthy business as the accumulation of wealth, whether we do ourselves or we may provide capital to others. In practice, a successful business is always the result of good work together.Unfortunately, not many people are willing to share in a positive way to build a business as a form of wealth accumulation. In this case, the rule of law is needed to maintain a healthy business; might not we get it perfectly in developing countries. In addition, there are many barriers to starting a business in Indonesia, something that we hope will change in government is more prudent.Accumulated number 3: indirectly, through investments in securities. Fundamentally, we can save money in the short-term deposits and bonds as well as stocks for the longer term. But along with the growth of capabilities, we can also use a more complex instruments such as derivatives such as futures and options transactions.For many, it is a choice the easier choice and certainly, because it has a strong legal basis already and linkages with global markets, making it more professional management. The problem, to be able to accumulate wealth with this option requires adequate financial knowledge, or in need of a competent consultant and trustworthy. In many developed countries, this option has become common, even offered globally as products off-shore. For people who want a diversified wealth accumulation to various places around the world, can also take this option.While efforts in a wide selection is done, there is always a risk to ourselves. In good financial planning, protection of wealth accumulation is done by insurance, so the risk is transferred to the other parties insurance company. Thus, we apply the principle of bamboo as has been discussed, and make sure we save enough for our future.
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