Saturday, September 10, 2011

Household Finance How to Manage Properly

HOUSE households in which there is a husband, wife, and children, a financial unit of the smallest. In essence, managing the household finances as managing finances in the company.

Generally, when early marriage, frequent difficulties manage household finances, resulting in deficit cash flow occurs at the end of the month. This is due to the financial management has not been well-established and there has been no comprehensive planning.

Create a planning is a year ahead

The first time you make a monthly budget plan for the coming year. Planning is separated between the source of funds (inflows, can be derived from wages, other income from teaching, writing, etc.) as well as the use of funds.

In those plans include a plan that will be conducted throughout the year. Separate between operating costs, development costs, the cost of socialization, as well as unexpected costs.

Operational costs are costs that really should be issued every month without delay as: the cost of electricity, water, school fees, transport, and the cost of basic material needs.

Development costs is the cost to improve the ability or the competence and careers of family members such as: the cost of computer tutoring, English lessons, piano lessons, the cost for the advanced courses, and others.

This cost can still be postponed or reduced, if finances are limited. Socialization costs, among others; donation if a friend got married, someone died, or social gathering. This fee can be adjusted with the financial ability, and if finances are limited only to choose to follow an important social gathering only.

The cost of reserves needed to cover unforeseen needs. Often, our finances are limited, so the post is often no funds. The division of the posts that you want can be made using a separate envelope.

If possible can use a bank savings account. What about credit cards? Useful credit card in lieu of cash, you should use a credit card in lieu of cash benefit, should the use of credit cards tailored to the budget plan. Thus, no difficulties arise because of excessive use of credit cards.

Separate sources of funding and use of funds

* Source of funds

Where all sources of funding will be obtained, whether there are funding sources other than salary? Budget should be based on the obvious source of funds, so if there is additional income outside the plan, could be included in the reserve fund, which can later be used for investment.

* Use of funds

Closely monitor the use of funds is very important. And the thing to understand is the distinction between the use of long-term and short term. For example, for monthly operating expenses, can use a short-term funds derived from the monthly salary.

But if you want to buy something that will be used for long-term, such as washing machines, refrigerators, televisions, furniture, vehicles and houses, should use the long-term funds.

If the form of loans, loan also seek long-term loans, so that it can be repaid each month and included in the budget plan is prepared. Calculate how many monthly installments, does not interfere with monthly cash flow? Make an estimate accounts (balance sheet) is simple and its cash flow

To determine the position of our wealth, create financial balance sheet estimates. From the balance sheet we will know how much the property (assets) which consists of: current assets (cash and funds in bank accounts that can easily be melted), fixed assets (furniture, vehicles, houses), and other assets (outside current assets and fixed assets).

Then we calculate how much total debt, separate short-term debt (monthly installments) and long-term debt. Furthermore, we can calculate that the capital itself is total assets (assets + lanca fixed assets + other assets) minus total debt.

Cash flow needs to be made to determine the cash inflows and cash are expected to be out. By making monthly cash flow, it is expected to reduce the occurrence of shocks in the management of household finances.

With planning, which is then poured in the prepared monthly cash flow, for one year ahead, we can analyze whether a reasonable management of our finances or not. Cash flow should be discussed between husband and wife, so the two agreed to perform according to a written plan.
Source : Okezone

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