Basic Personal Financial Planning

Managing your financial of balancing earning and expenses is the most important things to do before go for further investing. In this post, I will try to explain some simple financial tips that helpful so much for family or personal life.

Each of us certainly has goals in life to achieve. From the desire to have a car, get married, have a house, roads with the family, and so on. Thus, all of its goals need to be prepared well and of course have the consequence affected the financial side. That is why, for all of us need to be able to manage the resource of income to be used as optimum as possible so that all the expected goals can be achieved.

Now, how do we manage finances well? And why do we have to manage financial well?

Each of us has varied needs in the family. There may be a family who has biggest portion of expenditure is transportation cost, or also there is family that the half of the revenue used to pay for the installment, even there is also can spend more than 70% of income just to meet the needs of daily living. We should be managing the financial well, as we know that source of income for us is limited. But the amount we spent is not limited. Do not wait until spends bigger than income. We can be involved in trouble that is debts. Surely we do not want this condition happened in the long term.

So that expenditure can be properly restrained, it is suggested to set expenditures based on priorities. Once you receive your earning in the beginning month, spending priorities should be done is to pay social obligations. When we pay the social obligation before, it will make us relax in life because we are thankful for what has been earned. Then, the second priority is to pay installments, such as credit cards, housing installment or apartment rent, and other installments. If you ignore or decide to delay these installment obligations, sanction will be a penalty or interest can be bigger and bigger. The allowed amount of installment is a maximum of 30 percents of the earning received. Then, for example, if now you have installments, try to count again whether is it more the suggested limit or not.

Then, the third priority is the saving or investment. Can be done through deposits, gold buying, insurance, mutual funds and others. This is necessary because the precedence is your life not only at this time only, but also the future, where anything can happen especially the prices increase of good. To anticipate this possible situation, investment is the right way to prepared. How much for the size of the investment that must be taken from earnings? Well, at least 10 percent are also enough.

And for the last priority, spend to meet the needs of daily living. Whether it is to pay for electricity, water, shopping needs of families, and others.

In good financial managing, it is base on how much income you receive each month, but more to the wishes of yourself to want to optimize the revenue received. Regardless of how it will fit for the family, certainly you know more about it.

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