Tips to manage your finances
1. Determine your financial goals
you need to decide which should come first, details which are clearly more important to you and your family.
In general, divided into 3 financial goals:
- Short-term objectives, such as buying new cars, vacations at the end of the year, moved into the house greater
- the medium-term goal, for example, have children, opening a new business
- long-term goal, such as retirement, college kids Determine clearly, which should take precedence.
2. Your personal assets
You must know how net assets have been owned. The simple picture, the net assets is what you have today reduced the debt and mortgage. If you are approaching the age of retirement, inheritance included in personal assets. Heritage’m taken into consideration when an individual has to do with the law, debts when she died. To find out how much the picture of your net assets have now, could use a simple balance sheet file
3. Calculate the budget
Specify in detail the necessary budget and set your goals on the measured rate from the beginning. You should try to carefully manage expenses, expenses not to exceed the income, expenditure go back and check that can be saved again, avoiding looking for a loan to cover the loan, your lifestyle, unless you are really in a state of emergency and certain income will increase.
4. Debt
Debt not recommended, but if forced to, borrow only as much as you need, the need to remember before you borrow money from banks, borrow only the amount you need because it could have been able to increase interest rates, far exceeds the debt owed. Create a plan to pay off the debt as quickly as possible, for example, finish the first high-interest debt such as credit cards, loans without collateral (KTA), etc.
5. Provide a reserve fund
for emergencies, provide a reserve fund of 2-3 times monthly income, it is necessary to keep watch in case you are laid off or because of something else. This reserve fund can not manipulate diutak if things are not really emergencies.
6. Savings
After you pay off the debts of high interest, start saving money periodically for example monthly, weekly for short-term goals you want any medium, for example, foreign holidays, renovating house
7. Protect your assets
Protect yourself and your assets. Make sure you and your family have an adequate amount of protection for critical illness insurance, outpatient / inpatient, accident and death of
a few things that could be used in taking insurance tips:
-Are you a primary source of income
-Determine your financial goals
-Consider using a service lawyer in the event of circumstances beyond the initial plan
8. Plan your retirement
Create a financial plan for your retirement. Have you already included in the pension, Pension Fund by the company, whether you get a subsidy from the company or deducted from your regular income? Regardless of whether the condition you still have debt, consider wisely to get it.
9. Investment
Investment is not only for people who are financially stable. Investing early development opportunities your assets in the long run home run to right. Ask your tax consultant for ways to reduce the tax to be paid from the investment.
10. Duplicate your knowledge
more often you practice your financial knowledge to others, the easier you apply it in everyday life.
