Nobody feels we've been at the end of the year 2017 and soon we will be entering the year 2018. Already prepared to face the new year with targets and new resolutions? What resolution you want to achieve in the year 2018, good career, finances, family, education and many other things.
Before making plans for 2018, it's good you make an evaluation of the achievements in 2017. In terms of finance, financial evaluation can be done by performing financial check-up.
Maybe you more often hear the term medical check up, but there is also the name of the financial check-up. But not many know what it financial check-up, what are the processes that occur in the financial check-up, and the benefits of the financial check-up.
Financial check-up is an examination of the overall financial conditions, with the purpose to find out the health of a financial condition. If it is not healthy it will be used as material for the evaluation of financial condition to make improvements in the future.
If the medical check up is usually done when it reaches a certain age, in contrast to the financial check-up that is not age-dependent person. Financial check-up can be done at any time as the evaluation of your financial condition. The end of the year is the most suitable time to do financial check-up.
The result of a financial check-up can help you to make planning, target resolution and what to do in the coming years especially in 2018.
Here, anything that needs to be done and examined in a financial check-up.
1. Create Balance (Total Wealth and Total Debt)
Not only on the companies that make the report balance sheet as part of the financial statements of the company at the end of the year. You also need to know your personal financial balance sheet condition.
Total Wealth consists of all your wealth list i.e., property, vehicle, savings, deposits, gold, mutual funds, stocks and other, whether already paid or anything that still is credited. The computed value is the computed value when your wealth are sold now. While the total debt or total obligation is all list the debts you have. Enter the value of your final debt principal in a list of debts. The financial balance sheet is healthy if the value of your net worth is positive or your Assets is greater than the Total Debt or Total Liability.
2. Create a Cash Flow (Earnings and Expenses)
Have you been create records and knowing the condition of your Cash Flow over this, especially during the year 2017. Or you never take down so as not to find out whether your Cash Flow conditions are fine. In this case to find out the actual Cash Flow condition you must make a note especially where the income you receive is spent. By making the note wherever the flow of money you have then you can see if your finances is good, or the many expenses that should not be done.
From the note you can see if your financial condition is already healthy, i.e. a condition where income greater than expenses so that you still have a Disposible Income that can be used for investment or savings. More to look out for is when conditions are negative, i.e. expenses greater than income instead.
From the data of the balance sheet and Cash Flow that you've created in general, then it can be concluded that if the balance sheet and Cash Flow positive value, You mean your financial condition is generally healthy. But there's not enough, there are the checks carried out in detail by the financial planner by using the special ratios such as Ratio of Liquidty Ratio, Saving, Debt Service Ratio and some other ratio. The ratios can assess the health of your financial condition in more detail, such as the magnitude of the debt, asset, credit and a few other things.
Source: Detik
Source: Detik
