Currently many financial institutions provide loans with easy terms and installments of light. However, many financial rules have changed, the cause for instance by an uncertain economy, how to shop and save, 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 the modern lifestyle makes a lot of expenses that make the financial problems grew. How do I handle personal finances and your family?
To control the personal resources and family can be a particular challenge. Credit or debt have seemed the easiest solution to overcome the financial problems quickly. You can use the debt as an asset, but if not careful can lead to painful consequences.
For some other people, they always try to find a larger income to overcome financial problems. Financial experts say that to overcome the financial problems associated with awareness of where the source and expenditure of money and a willingness to make informed decisions. Therefore, solutions to overcome the financial problems is to make a budget.
Creating a budget is not difficult to learn. One of them is to make a list of income and expenditure list. Then keep the expenditure does not exceed the income, as the saying goes big stake than the pole. By creating a budget will make your life more enjoyable and rewarding. Anything you can enter in the budget?
The first you need to make a list of income. Generally that will go into this list are salary, interest from savings accounts, deposit interest, and so on. Take note that only the regular income you’ll get each month.
Avoid entering uncertain income or non-routine within your budget. Some income must not include overtime, bonuses, prizes, commissions, even though THR. The financial consultant has warned that a plan based on income sources of uncertainty can make your debt. However, if you get any time uncertain income, such as overtime pay or bonuses, then you can choose to use such money to treat yourself and your family, travel, or give donations.
Compile a list of expenses is not as easy as making a list of income. You might try taking down every expenditure to see the financial waste that occurs. However, you should be able to make a list of monthly expenses if you know your shopping habits. Some important things that must exist in the list of expenses such as basic needs. This includes food, shelter, and clothing.
Do not forget to include a periodic routine expenditures such as spending per three months, as of mid-annual, annual and other periodic expenses. Example for home insurance payments, vehicle taxes, or income tax. However, to put it in the monthly list, you need to divide that amount by the number of months suitable.
Then for each expense, you make weighting or priority scale. If you find your expenses amount greater than or equal to the income, then you can eliminate or delay some expenses that you have registered. It would be very helpful if you divide every expenditure by weighting the absolute necessity, the needs of the doubt, or just a luxury that want to have. This method will be helpful, if at any time your income decreases because of changes in circumstances. You can quickly get rid of some who still doubt the need or a luxury only.
However, one of the most important in saving the expenditure list. Although many people may not think of saving as an expense, it is wise if you budget some of your monthly income for emergencies or special purpose. At least, you have to set aside 5 percent of your income has been taxed to save. If not, you have to make the steps that hard. Get rid of credit utilization, set back your lifestyle, and consider your basic needs. Strive to enter savings in your monthly budget.
Your success in carrying out your budget largely depends on how realistic the budget. The idea is that the list reflects your personality and choices but still realistic. If you create a budget is too small and is unable to meet the need of households within one month, then certainly all that you’ve set up will not run.
Many people think that loans can be a form of debt finance solutions. However, uncontrolled debt can derail your efforts to live according to your income.
Certain types of debts can be an asset. For example the long-term debt for the purchase of assets such as houses continue to increase in value can be useful. In contrast, credit card debt used to finance day-to-day lives can be disastrous. Hold to the principle not to pay even a dollar of interest expense or credit card. It is a credit card can ease your life, but always be careful when using it.
If you have a credit card, paying off credit card bills immediately before the interest arises. Financial experts recommend paying off debts credit card even if it means you have to sacrifice your savings. Think about it logically, that it does not make sense to get into debt with high interest savings while maintaining a low interest rate. This is similar to waste. Beware of the burden of credit card interest charge!
Make a budget and get out of debt you need to do seriously. Once you get out of debt credit card or other short-term debt which is not an investment, then you can start trying some of the following practical steps:
* Reserve Money
Always have the financial reserves of at least six months of income. This reserve could be a savings or other investments easily redeemable if needed immediately. If the situation changes, for example, you get fired, then you will have enough money for at least six months while you apply for a new job. Conversely, if you get a raise, you can try to save at least half of the salary increase.
* Big Debt
If you want to invest in debt, then try to carefully count the number of installments. Installment debt should not exceed 30 percent of the salary her husband. If you are a spouse who works full, simply calculate the mortgage debt of the husband’s income alone. Then enter into the budget you have created to evaluate whether it was reasonable for the debt or credit.
You can reduce borrowing costs by paying significantly higher down payment. But you have to save for that far in advance to include them in your family budget. Low initial cost may mean that credit costs lower.
* Family Communication
Another success factor in conducting financial planning is good communication between family members.
Develop and implement the budget may be the only tool that can help you to overcome financial problems. Avoid debt, and if you already have credit card debt, paying off immediately. Always put your funds to save and invest. Thus, you are able to successfully overcome your financial problems.
Hope this article can be useful.