KEY WORDS
1 Incoming cash flow Credit Insurance Income Cash flow Computability Structure of cash flow Outgoing cash flow Marital status Risk transfer GDP per capita
2 Private insurance Foresight Wage income Life insurance Self-insurance Life cycle Standardized life cycle Cash flow of life cycle Life, accident and health insurance
3 Phases of life cycle Social security Financial planning of life cycle Reserve Consumption Capital income Wealth Risk Active phase of life Risk community Inactive phase of life
How long ahead do people plan their future? If we search our own thoughts, or examine the actions of people we know, that allow for such deductions, we may get very different answers.
1. There are some people who know in the autumn exactly when and where they are going on vacation next year, and some who do not know even at the beginning of their vacation. There are some who are continually increasing their wealth, and some whose wages never last them through the month, etc. In general: the longer ahead a people plan their future, and the more of a strategy they follow, the better off they are in life.
2. Since almost every action a person undertakes requires some form of financial-type resources,15 the basis of long-run future planning of any sort is long-run financial foresight (or long-run financial planning)
3. The effect of intelligence can also be seen very clearly, which can be measured most closely by level of education, as they show a very strong correlation.18 A more intelligent person is better at finding his way in the world, can see the connections between things more easily, and can distinguish between the important and less important factors, which all aid in better foresight. It can be observed quite frequently that social classes with low income but high education levels (as are doctors and teachers in
4. Hungary, unfortunately) are able to do more in the long term (for example, educate their children, save for their old age rather than get caught up in the fashionable consumption trends) with the same income as classes with similar means but lower education levels.
5. t is very important, and a strong determinant of the possibility for foresight whether a person is living in a consolidated society, or one that is changing rapidly or perhaps at war? The basis of all foresight is a civilization that is predictable and consolidated, the presence of rule of law, etc. During the siege of Budapest, in the bomb shelters, the time horizon of foresight was probably only a few hours (can I eat today? Will I have a place to sleep? Will I be alive at all tonight? etc.),
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