Today many financial institutions provide a variety of loans with easy terms and installment lightweight. However, many financial rules have changed, for example caused by an uncertain economy, how to shop and save money, as well as lifestyle changes. As a result, more and more people find it increasingly difficult to manage personal finances and family. Finally, many people who were in debt. Then because of the modern lifestyle makes a lot of expenses that make increasing financial problems. How to troubleshoot personal finances and your family?
Solution for Financial Problem
To control the personal and family resources can be a particular challenge. Credit or debt does seem the easiest solution to solve financial problems quickly. You can use the debt as an asset, but if not careful can result in painful consequences.
For some others, they are always trying to find a larger income to overcome financial problems. Financial experts say that in order to overcome the financial problems associated with awareness of the sources of money and expenditure as well as the willingness to make an informed decision. Therefore, a solution to overcome the financial problems is to create a budget.
Develop a Budget
Creating a budget is not difficult to learn. One is to make a list of income and expenditure list. Then keep the expenditure does not exceed income, as the saying goes unbalanced budgeting. By creating a budget will make your life more enjoyable and rewarding.
Anything that you can enter in the budget?
The first one you need to make a list of income. Generally that will go into this list are salary, interest from savings accounts, deposits, and so on. Record only definite regular income every month you get.
Avoid entering an uncertain income or non-routine within your budget. Some income is uncertain include overtime pay, bonuses, gifts, commissions, even though THR. The financial consultants warn that a plan based on uncertain sources of income can make you debt. However, if you want occasional uncertain income, such as overtime pay or bonuses, then you can choose to use the money for example to treat yourself and your family, travel, or give a donation.
Compile a list of expenses is not as easy as making a list of income. It could be that you are trying to record every expenditure to see financial wastage occurs. However, you should be able to make a list of monthly expenses if you know your spending habits. Some important things that must be present in the list of expenses such as basic needs. This includes food, housing, and clothing.
Do not forget to include periodic routine expenditures such as expenditures per three-monthly, mid-year, annual and other periodic expenses. For example, for the payment of home insurance, vehicle tax, or income tax. However, to put it in the monthly list, you need to divide the sum by the number of months that match.
Then for each expense, you create a weighting or priority. If you find the amount of your expenses greater than or equal to the income, then you can get rid of or delay some of the expenses you have listed. It would be helpful if you divide every expenditure by weighting as an absolute necessity, the necessity in question, or just a luxury that want to have. This method would be very helpful, if at any time your income is reduced as the situation changes. You can quickly get rid of some of the needs that still doubt or any form of luxury.
However, one of the most important in the list of expenses, savings. Although many people may not think of saving as spending, it is wise if you are budgeted portion of your monthly income for emergencies or special purpose. At least, you should set aside 5 percent of your income that has been taxed to save. If not, you have to make the hard steps. Get rid of credit utilization, and then adjust your lifestyle and consider your basic needs. Strive to enter savings in your monthly budget.
Your success in running your budget largely depends on how realistic the budget. The idea is for the list to reflect your personality and your choice but still realistic. If you create a budget too small and unable to meet the needs of household within a month, then certainly all that has been collated will not run.
Many people think that a loan can be a solution in the form of debt finance. However, uncontrolled debt can derail your efforts to live according to your income.
Certain types of debt can indeed be an asset. For example, long-term debt for the purchase of assets such as homes continue to increase in value can be beneficial. In contrast, credit card debt used to finance day-to-day life can be disastrous. Hold fast to the principle not to pay even a dollar of interest expense or credit card. Indeed, a credit card can simplify your life, but always be careful when using it.
If you have a credit card, pay off your credit card bills promptly before interest arises. The financial experts advise to pay off credit card debts even if it means you have to sacrifice your savings. Try to think logically, that makes no sense to get into debt with high interest rates while maintaining savings with low interest rates. This is tantamount to waste. Be wary of credit card interest bill loads!
Keeping Safe Financial Condition remains
Creating a budget and get out of debt you need to do seriously. Once you are free of credit card debt and other short-term debt that is not the nature of investment, then you can start trying some of the following practical steps:
Always provide financial reserves at least six months of income. This reserve could be a savings or other investments easily cashed if needed immediately. If the situation changes, for example, you were fired, then you will have sufficient funds for at least six months while you apply for new jobs. Conversely, if you get a raise, tabunglah half of the salary increase.
If you want to owe for investment, then try to carefully calculate the amount of the mortgage. Installment debt should not exceed 30percent of the husband’s salary. If you are a spouse who works full, simply calculate the mortgage debt of the husband’s income alone. Then enter into the budget that you have created to evaluate whether it still makes sense to get into debt or credit.
You can reduce the cost of borrowing by striking with a high down payment. But you have to save for it far in advance to include them in your family budget. Low start-up costs can mean loads of lower credit costs.
Other success factors in running a financial planning is good communication between family members.
Develop and implement the budget may be the only tool that can help you to overcome the financial problems. Avoid debt, and if you already have credit card debt, pay off immediately. Always set aside your funds to save and invest. Thus, you are able to overcome your financial problems.