Financial planning early on required each family. This holds true both for young couples as well as married couples for more than 20 years. Make a good plan will help to use funds wisely according to the level of requirements.
Family financial planning doesn’t have to be complicated. You may just have the planning details and neat, but sometimes simple is also planning to succeed.
The following 3 basic principles you need to grasp in making the permanence family:
1. Shopping is less than income
This is the first law obligatory obeyed. Very simple but often violated. Never spending more than your income. Major problems in family finance starting from breaking this. This happens when You spend something it really isn’t you have.
When you start shopping is greater than income, buying goods exceeds capability, then the financial catastrophe began. You will begin to make a hole that continuously deeper. And far more difficult to attempt to get out of the hole rather than try to avoid it at the first opportunity.
So, shopping wisely, don’t exceed income. You will live happier, at home and in the workplace.
2. avoid debt
Frankly the debts so tempting. What can’t you buy can now also owned by debt. But keep in mind, the debt will make you miserable especially if it turns out not to have the ability to restore it.
Thus, is it possible to live without debt? Of course it is possible. If you run the first principle shopping less than income, then you don’t have to owe. Hold all desire to buy something unless you already have the ability.
This way you will learn to conduct only have something if indeed have the capability. Or if you are coveting a neighbor’s things, tabulation on a regular basis until you are able to buy what you want without having to owe.
3. the simple life
Whether it’s a simple life? Whether living with no home or vehicle? In my view, a simple life means living as needed. Not to be all that you want it to be bought. Life according to your needs and for benefits to others in need. This is the living to give meaning.
Simple life could be different for each family. If you are very rich, so the ends meet it’s self with one or two vehicles only. Not necessarily collect all Your vehicle to show your ability.
If you live with financial limitations, thankful for what there is and there lived a potluck. If you don’t have money, there lived without it. Anyway, the world will not be the Apocalypse because of it. You don’t have to have the latest mobile phone, laptop, iPad, watch movies or eating in the restaurant. There are many ways to find bliss in simplicity. Discover how to enjoy the fun with your family at no cost.
Previously I have discussed that making financial planning that’s actually easy if you attempt to try and run it. As for which is the basis of all planning is the habit of doing the recording.
Next, we can arrange finance family planning or budget and monitor its implementation.
At this time, I’ll discuss how to put together a budget for your family or personal finances.
For you who are not familiar with the term economics or accounting, budgeting for financial planning said the family feels it is too much. Isn’t it necessary for budgeting financial planning country such as drafting BUDGET? Or budgeting a minimum required by the company to predict profit and loss in the coming years?
True, the budget that I am referring to more or less as it is. The difference is this time we will be drafting the budget for family finances. In a simple budgeting is the process of compiling the budget, both the funding that goes and comes out. More specific related financial planning budgeting is the process of family, arrange and plan how much revenue you generate in a specific time period, and how many expenses to be spent over the same period. With budgeting, you can see whether the current financial surplus, breakeven, or minuses. The good news is: with budgeting, at least the conditions imposed in order that you can at least break even.
Financial problems are commonly experienced by young families, especially in the first years of living the life Not to mention the little one soon comes in the midst of you and your partner. Is it true that the problem lies from family income?
“Often the problem is not located on the income is less, but the habit is wrong in managing the money,” expert financial in a some time ago. It turns out, in fact, a father who earn hundreds of millions of dollars could be experiencing shock when finding the money to stay at $ 500 before the end of the month.
Linage give some keys to managing their finances are simple:
- Understand your family’s financial portfolio. Do not let You do not know the contents of the savings, the number of utility bills, telephone, car services, shopping, doctor’s check fee, and others. You should know how much credit card debt, bank loan or mortgage the House and car.
- Arrange financial plan or budget. Realistic financial plan helps you be objective about the excessive spending. No need to be too ideal, so forget the needs of yourself. There is no harm in putting the needs of go to the salon, spa or clubbing. An important, realistic amounts and you must comply with the budget.
- think more thoroughly understanding between “need” and “want”. Oftentimes we are spending money for things that are not too important or just driven desire, not a necessity. Make a list in the form of a table consisting of columns for item shopping, needs and desires. After filling the item column, fill in the column “shopping needs” and “wants” with a check mark (V). From here consider with more mature, objects or things you need to buy/fill it or not.
The temptation to consumerist life. But it’s not that easy you purchase various items for credit. Grow a garden healthy financial habits starts from simple, as it does not have debts of consumerist.
- minimize the consumptive spending. Meet old friends to exchange ideas in the cafes sometimes indeed necessary, but does not mean you should do it on every Friday afternoon. You can use this to save expenses or meet the needs of others.
- set goals or financial goals. Arrange financial targets that you want to reach on a regular basis, together with a partner. Set specific goals, realistic, measurable and within the specified period. These goals help you focus more designing financial. For example, aspire to have international standards for preschool education fund and so forth.
- saving, saving, saving. Change habits and mindset. Soon after receiving a salary, set aside for savings in the amount of days you plan appropriate goals or financial goals of your family. Preferably, you have a separate account for savings and daily needs.
- Invest! Of course You will not be satisfied with just waiting for your savings soaring. Whereas your goals for the family “exorbitant”. This is a good time to also think of the investment. Now its messes. Fear of investment risk?! No need to worry, you just need to learn on the experts. Consult your finances with reliable financial experts!
- Understand Cashflow Management
Cashflow or cash flow is the flow of money that flows from the us to earn money, save it, expand it, and remove it by regularly, wisdom and discipline.
Knowledge will be required to finance cashflow known our families will not be garbled breaking loose and tracked. There is an interesting phrase “no matter your finances are an important deficit, You know where loss of investment money.” Let’s discuss cashflow diagram as follows:
Earnings (income) is an activity that aims to put money/property. Usually the income can be obtained from the two activities, namely Salaries and investment.
The salary earned from our status as an employee/employer/professional/consultant. In a family’s salary was to be gained by husband and wife are working.
The results obtained from the Investment activity in developing our money/property in various ways. There are a few ways I can invest the deposits, Shares, Property, business results, mutual funds, bonds, etc.
Well, all our income is usually stored in the form of cash or bank/ATM.
Spending means all activities that result in our money is reduced. From the diagram we can see an awful lot of need for spending on our families. So when it is not regulated properly then would make family finances to be chaotic and chronic if it could be headed to the brink of bankruptcy.
In General a family have some expenses such as household spending, Debt Repayments, insurance premiums, the Housekeeper, the child Needs, transportation, Taxes, Tithes/Entertainment/Recreation, social activities, Fashion, and so on.
When we look at all this time, the error is often done by most families are only deals with income derived from salaries that is constantly being drained to cover its expenditure. angat is a bit of our families who are starting to investment activities as a source of income for his family. But if we are diligently performing investment, then the result of the investment actually can cover all sorts of our spending is, in fact can be much greater than the salary we receive during this time.
The explanation above is an ideal conditions which are to be achieved by each family. When your family is currently still rely entirely on the flow of income from salaries every month, then it’s time for a little by little the money You set aside so that it could make a new revenue stream that comes from Investments.
The main problem is that there’s always a family usually revolved around finance. Could be due to lack of money, the excess money or because of the confused how to arrange the money his earnings while always needs exceed intake.
But it’s all Word of mouth key is how to manage the family’s finance or personal with intelligent, meticulous and well. Due to financial problems set regardless of you people are poor, medium or rich. Because anyone can manage his family’s finances, then it can be said to be 50% of their already successful and unsuccessful in terms of financials.
To that end on the inscription this time we will divide one of the tips are taken from one of the endorser My Family Accounting Mr. Ahmad Gozali. As for he gave a tip and tips how to make a successful family in organizing his family finances. As for the secret to success is by performing the following steps in order and discipline, namely:
Each time receiving the salary of the player who most of all you have to do first is to pay the mortgage debt first. Why? Because of the debt is the most important obligations that must fulfill to the other party is from banks and other financial institutions. Because the discipline you are paying in installments and ratings are a reflection of your good name in their eyes. Once You pay the late your name will be entered in the list that should look out for black later. So keep the good name as a debtor is very important here, because it would be useful later on in the future. In addition it is with this installment, prioritizing pay means we already appreciate the creditors we were kind enough to lend money to us.
After paying their mortgage debt, then you’re doing is the tithe or make a donation. Yes this is one of the proof of our gratitude to Allah, the Almighty God who has given the gift of luck to all of us, so that we can do everyday economic activities smoothly without drawbacks. By allocating special funds to tithe was then it surely Allah will increasingly add grace and abundant sustenance to us. Do we want more and received by The Creator and giver of Sustenance we?
After the tithe what else ya? Next are not equally important is set aside at least 10% of your income for savings/investment. Wow, a why front of you? Instead of just saving it at the end of alias if there’s any left over? that’s one of our bad habits with the wait if there’s any remaining money in the end of the month, when in reality it is almost always no remaining right? That means we’re never going to be saving. Well, now the trend is a good habit of saving and in front, with a cut right off every time it receives a salary/income. For more information about what and how this has been disciplined in saving we explain in a previous article entitled “Saving Tips For Low Earning .
any amount of income, if the expenditure is greater than the income, financial position will be a deficit. That means that some needs will be financed by debt. Thus, there is no source of funds that can be used to improve the asset. That there is a gradual decrease in wealth due to asset will be used for debt payments.
Therefore, the level of a person’s true wealth is not measured by the amount of income, but rather depends on the character of earnings management. In short, whatever his little income, it is possible to get rich if you are willing and able to innovate in financial management.
What is financial innovation? Simple it is to do different things in financial management. For example, if most people use credit cards to get into debt, in the corridors of financial innovation, the use of credit cards is to take advantage of grace payments so you can use the funds of others, within a certain time without any cost.
So, if you shop today and then pay it off before maturity, means you can get extra cash flow in this period, which can be used for various things.
Imagine, if you can buy goods at a price of “X”, for example, and then sell it back at a price of “X” plus a profit, you have to do business without capital, and even earn a profit. In other words, debt is used for productive activities is one of financial innovation. Moreover, if the debt itself is obtained without any costs, such as the use of credit cards on top.
What if the debt interest costs rise? It does not matter. Along the interest cost is still lower than the benefits, you still belong to the innovative. So, in sum, develop an asset could be done without capital. Was obtained from the debt capital. Then used to conduct business. And business results are able to provide higher returns than the cost of debt itself.
Investigate Financial Habits of Men Before Marriage,
I think we pretty stressed about work and bills the bank account. Unfortunately, the financial problem was not just attack you, but also the relationship with your partner.
Relationships also subject to the impact of less favorable economic conditions. If you are not a conglomerate of children, may not always be filled out with dinner at a fancy restaurant, a holiday to Bali, or buy him the expensive diamonds.
How difficult economic circumstances affect the relationship?
When people are afraid of losing jobs or money, it can cause a large amount of tension and strife. Spending habits-something as simple as a date at a restaurant, can sharpen the arguments of each side.
So, how do couples get past the problem without breaking the bond?
Take advantage of this condition as an opportunity to find out how your male partner to deal with money. There are four things you should investigate as a major consideration when deciding to marry him.
First, how much he used to save money in the bank?, Second, whether he tends to shoppers splurge?, Third, whether he’s responsible enough in holding the money?, And fourth, how to pay any bills?.
Is there something to be sought out in the dating process?
Credit card debt is a legitimate thing to ask. You certainly do not want a relationship with a blind which was at risk of destroying the contents of your own credit card. But, do not mention this problem in the first date, second or third. You can begin to raise this subject after the third date.
What is your advice to women who have better financial condition than their lover?
Supposedly, you are sensitive to self and selfishness side of him. In order not to humble his pride, let him be paid expenses for a date. Men will feel little if you always pay for dates.
What if the opposite is true?
Ladies, you do not always rely and expect the lovers who will pay all dating expenses.
Do men have to pay for a first date?
Is it permissible to lend money on a girlfriend?
If you love her, yes.
What about joint accounts?
There’s a good idea to have two accounts. One account for the joint, and another one for your own account.
First, commitment. When you settle down, it means you’re ready to share the income for your household. If you are still using the ideology of the individual in your household, it’s no different than life itself. Will ultimately lead to financial problems. Therefore, a commitment to share a foundation in managing family finances. If during this husband and wife was already using the paradigm, income is the right of each, then change the paradigm. Not too late.
Second, determine the financial goals together. How many assets who want to have? How to prepare the child’s school fees? And so forth. Every family has the right to determine their financial goals. However, that being said the key is how to make a priority of these financial goals. Who should relent and what should take precedence.
A simple example is the need for a family vehicle. Could be, because the inequality view of the family of funds eventually run out to buy things that are not productive. The most common is about the car. It could be that the husband wanted the sedan type car. The goal, so if the office could be more stylish. However, the wife wants the type of vehicle that can carry a lot of people because each wanted to travel together his extended family. If there is no meeting point, the family then bought two cars which in fact is not productive.
This sort of thing could lead to swell the funds for the purchase of cars, and can interfere with family financial goals. Therefore, in the context of these financial goals, both parties must be willing to yield real and prioritize the assets that are productive. As for consumer assets should be based on the functions and basic needs, rather than mere desire.
For reference program credit card:
1. Akki Checking.
2. SID Negative.
3. Income Adequacy applicant to meet debt obligations and needs.
4. Age period of less than credit card required.
5. Use credit cards exceed credit limit.
6. The number of credit application.
7. Credit history of applicant
8. Period of employment from the prospective applicant.
From the point above is very important so we can better maintain the credibility of the data themselves on credit history and others. This information is intended to help the circle of ignorance, so do not accidentally included in the category of the Black List or the other and thus difficult to relate to his credit.