Creating a budget is not difficult. All you have to do is take the time to make arrangements and planning. If it is made, a budget can be easily managed. Steps to manage a budget:
Step 1: Determine the target
The first thing to do is to specify a target, for example, has a new home, early retirement, or preparing for education expenses.
You can group your goals into three categories: short-term financial targets, medium-term and long-term.
Ask yourself: What things are important to me? What do I need? What do I want? The answer of these questions will help you determine your target. If you are married, you and your partner should discuss these answers to decide the target together.
TIPS
determining target
Write down your targets. If you already know what you want, you can begin to make a budget.
1 Short-term target:
Is the target you want to achieve in less than one year to the next, such as paying off credit card bills, buy a television or a refrigerator, or saving for a holiday.
2 medium-term target:
Is the target you want to achieve in the next two or five years into the future, such as a down payment home purchases.
3 Long-term target:
Is the target you want to achieve in more than five years
forward, such as retirement savings and college tuition.
Step 2: Gather information
Collect all the data of household income and expenditure. Thorough and honest when making estimates of expenditure. Budget that you create must be an accurate picture, not the "best possible". Collect the following:
- Salary Slip
- Refunds
- Note checkbook
- Credit card bills
- Receipt important purchases such as a car loan
- Receivables from banks or other financial institutions
- Other Expenses, such as: monthly shopping, social gatherings, school fees, etc.
TIPS
Managing information held
You have to manage the information that you have into three parts. The third section will be used to create a budget.
1 What is your income:
Collect all types of income, such as: including a "clean wage" after taxes, commissions, bonuses, social security or pension, disability assurance, interest income, dividends, and other benefits.
2 How much money you spend:
Collect all fixed expenses and variable expenses are not fixed. Fixed expenses are expenses that amount does not change every month, such as rent, loan, insurance, loan payments, retirement savings, tuition, money and other social gathering. and usually can not be contested. Spending is not fixed variable expenses which amount is subject to change and may be reduced or eliminated, such as cable television subscriptions, groceries, gas money, phone bill, and others. and can be reduced or eliminated.
3 Number of late:
Subtract total expenses by total revenues. The results are a reduction in the budget balance. If spending is greater than revenue, the budget shows an unhealthy condition. If spending less than income, the amount left remaining amount is called "discretionary income". This is the amount that can be used for emergency purposes or saved to and meet budget targets. And this shows a healthy state budget.
Step 3: Understand your current financial position
After all the information collected, you can see the relationship between income and expenditure. You can use numbers when making a budget estimate for the first time, because it takes time to understand your true financial position. At least this information can give you an idea of shopping behavior is good and right.
Step 4: Check the number of final
The final amount that you have is the difference between your income and the amount of your expenses. This figure gives an indication of whether you are spending too much money or not. If the number is positive, you can increase the amount of your savings and if the number is negative, it means you are spending more money than revenue.
If you spend more than 15% to 20% of net income to pay off debt and credit cards, chances are you're in the danger zone. If the final number is negative, you should re-examine your expenses, especially those that are not fixed, so that your spending habits back under control.
Step 5: Record spending
After you perform the initial stages of the budget calculations, start record monthly expenses. Even if your final number is positive, it helps you understand your spending patterns so far.
Carry a small notebook wherever you go to record expenses and withdrawals. From the notes you do, you could be surprised to find your spending patterns. Many people realize that they can spend millions of dollars just to buy snacks, clothes or pay a cell phone bill. Usually problems arise due to the purchase of goods is not important, if not purchased any that actually does nothing. The purpose of this recording is to look at the pattern and the amount of your expenses.
If you feel your financial mess, try implementing measures to make budget and planning below so you can get back in control of your finances. Maybe you need some time to fix the spending patterns, but you need to continue to adapt to get the most appropriate financial planning with your financial behavior and condition.
Manage the expenditure is not easy, so include your family in this planning. They also can assist your financial arrangements. In addition, any changes you make may affect them as well, so they should also be involved in the budgeting process.
TIPS
Overcoming financial troubled start
You will experience problems or are on the verge of a problem if your bills do not swell while increasing your revenue. Immediately fix your finances if there are at least two points below that suits your current situation.
- My monthly minimum bill 20% or more of net salary, not including rent or mortgage payments.
- I withdraw cash from one credit card to pay another credit card.
- I do not know the total amount of the loan and my credit card usage.
- I get a call or letter from a bank or lending institution does not make the payment due at maturity.
- I am often late paying bills.
- My credit application is rejected.
- My income is not enough to pay all my bills at this time.
My credit card was declined while buying something because its use has exceeded the limit.
- I have more than three credit cards are all I use.
- I have three credit cards and still apply for a new credit card.
0 komentar:
Post a Comment