Financial capability

Have you ever felt your salary is not enough even increased every year? Are you sometimes feeling disappointed because of you are not able to buy your desired products? Why does this situation come? There are two causes.

1. Limited salary.

Your salary is fixed every month, while your needs and wants are unlimited. For example, your salary is now 2000, you certainly cannot buy a house in installments where the monthly installment amounting to 3000.

If you want to force to buy a house, you have two choices; first, you have to look for additional income. Or the second way, you are looking for a house with smaller installments than your salary.

2. Expenses exceed the salary.

You already know that the amount of your salary is 2000. Then, you have to think and try hard to manage the salary to pay all cost of your needs and wants. Set aside 15% of your salary for future investment funds (Future First), the rest of it may be used to pay all expenses including the various debts that you have created.

Never spend money for the cost of living exceed your salary, due to a deficit that could deplete your savings or investments.

The main thing is how you live below your financial capability, maximum of 85% (because you have set aside 15% for independent and prosperous future).

Good luck!

[image taken from: www.deborah-s-hildebrand.suite101.com]

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