How many of your current income? No need to be answered. Because, no matter what your income, if not well regulated surely would never be enough.
Indeed, there is no special way of financial planning that can directly work for everyone. Like a diet, sometimes you need to do a few tries before finding the most appropriate financial planning.
Try these 4 steps as a way to organize your salary.
1. Track and recognize your finances
For those of you who still feel chaotic financial arrangements or just starting to manage finances, it’s time for self-examination.
The point is to find out habits to allocate revenue during the month. Try to compare between your income and expenses you did for the last month.
Typically, a person spends his income on a few things, namely food, transportation, and home. Then the rest will be used to pay the mortgage, the costs of entertainment or sightseeing, and shopping. Next, calculate what percentage of outlays. ,
2. Make three budget
Having managed to trace and identify the allocation of your money, then it is time to make a plan. As long as at the beginning of the month and you’ve just got paid, try to create a simple budget planning.
Armed with the results of the investigation record allocation of your money in the first point, you will be easy to make this planning. Make a shopping destination allocation based on the division of expenses respectively.
When you want to go further, you can also make budget planning in some parts. That short-term planning, medium and long term. Short-term planning is the expenditure that will be issued per month.
Furthermore, medium-term expenditure is spending to buy the things you cicil less than one year, for example, when you buy the phone using a credit card installment sale.
While the long-term expenditures are expenditures such as saving for retirement, buying a car, buying a home, or an investment.
3. Make the future goals
This point is specifically for long-term expenses. Therefore, the purpose of long-term expenses that are often overlooked by someone.
The reason, many people still consider financial planning as a punishment for bad financial arrangements made so far. In fact, with their long-term financial planning, such as inserting your way to achieve future goals.
Suppose you want to buy a house. Because they can not buy in cash, of course you want to take it with mortgages. Here you do budget planning should not be regarded as a reminder you can not afford to pay upfront.
However, to help where your money will be used each month. That is, you can adjust your spending and saving regularly to collect the cash advance you need.
4. Not enough time to find additional
At the same time, try to monitor your revenue. Compare income with expenditure. If the result is even or even deficit each month, meaning a sign that you need to look for sources of additional revenue.
Whatever efforts to regulate finance, the bottom line is you are prosecuted aggressively changing spending patterns. Most importantly, you also have to be disciplined with financial planning that you have created.