Household financial arrangements are easy bother. Difficult because the communication of entrance and exit of money to be made honestly what it is and transparent alias nothing was hidden. But it becomes easier when mutual trust has been built and maintained with one another. Even so, you still have to know how to manage household finances because this is important. Here are some steps household finances:
- Expects Revenue One Month
The first step is projecting revenue to be earned in one month. Do this ahead of payday. Of course, the husband and the wife already know how their fixed income from work. But this projection is meant to calculate how much revenue coming from: houses contracted, dividends from the investment, over time in office, money from odd jobs, profits from small business, and so on.
- Allocate for Savings and Investment
Of the total revenue, please calculate and set aside 25% -30% for savings and investment. Please set the ratio between savings and the investment. Typically, the savings for large expenditures that will occur in the short term, while the money will be invested is money roughly will not be used in the year ahead. Of these, only allocated to investment instruments such as gold, mutual funds, stocks, and so on. For more information, check this site http://www.mycozycash.com/
- Expects Spending Month
Next, The third step is to do a projection spending the next 30 days. Starting from the obligations which are fixed: home loans, vehicle loans, credit cards, insurance premiums, and so forth. When setting your household finances well enough, then it should be spending obligations will not be more than 30% of the total income of husband and wife. New to the household routine expenditure. In certain months will emerge expenses such as school fees, course fees of children, money for a family vacation, and various other expenses.
- Leave for Reserve Fund
The rest were saved from the projected revenues and expenditures into the category of reserve funds. These funds shall ye set up in anticipation of the urgent needs, such as accidents, disasters, and the needs of the school children. This reserve fund amounting to 6-12 times the usual monthly expenses. To set up a reserve fund is often difficult because the need was not apparent in what form, how much, and when it will happen, so that funds are actually used for personal pleasure. But if you can exercise restraint and discipline, you will feel the benefits of this kind of thing.
- Write Plan
The most recent step is compiling the results of the 4 steps above into one simple plan. These plans form of a table which includes: date, income, expenses, and balance. This table is similar to a savings book. The bottom line is a wide range of income and expenditure that has been reflected in the first and third step is poured into a table. The make-up should be an appropriate date. So young date occupies part of the table. While the closest to income/payday in the next month is saved in the bottom of the table.
The above steps did regularly within a month. But not necessarily the same pattern for monthly only. It could also be for those who earn a weekly basis. Can also for projections and financial planning within a year. That said, the monthly pattern as set out gradually over the detailing than annual household financial planning.
With projections of financial planning at the same time as above, then the husband and wife will be ready to receive cash income families. And of course, the fourth stage above will not be beneficial if done inconsistently. Without full consciousness, there will be sudden expenditures and purchases are impulsive.