Speaking of finance, have you ever experienced the name always minus at the end month?? Or you haven't even run out of money yet? Many complain and think that the salary is always lacking, even though this is not the salary you are lacking but your financial planning is wrong. So how exactly is financial planning right? Let's see one by one.
What should be the initial stage?
Plan finances related to your personal matters, such as examples of allowance you, money for shopping, saving, and for others. As you age, of course the needs become more complex. Then how the initial steps that must be stiffened? Planning is the first step in arranging your finances.
Determine the goals that will be done in the short term - your long, deep a list, then how much it will cost for that purpose, so you can prepare little by little from now & amp; You can also sort each needs of the most important.
Set Cash Flow
Sounds easy right? but in fact it is difficult to do, because Mimin also experienced things same one before. Simply put, make a journal or a record of the total your income in a month, then list all your expenses in one month, after that the rest you set aside again for the plans you have made (planning short-term). Is there still money left? It depends on each person, there is one choose to save, invest, and even spend on shopping. But according to Mimin it's good for you to use it for something useful
Set Up Debts
Who has no debt? Hmmm it must be nice to live without debt, but unfortunately people rarely live without debt. Cellphone, Motorcycle, Car, Home and other installments are a loan that you must pay off in stages. Or there may also be those who owe cash. Start to make a list of what your current debt, how much total you need to spend each month to pay off your debt repayments. That way you can see your total debt. According to the leader, yes, with this list you can make it as an alert or reminder, you can measure your financial ability to owe more (new installments) or not.
Manage Emergency Expenses
Have you ever thought that if there is an emergency situation that conditions you have to spend quite a lot of money? Hmmm it must be really panic, and also confusion. Now this is where it is necessary to manage emergency expenses, it would be nice if you have an insurance that can cover emergency expenses such as health insurance, life insurance, education, etc. Enter this insurance list as your near term planning, when will you start? How much insurance can you pay each month? Good financial planning will make life even better.