Household financial arrangements are a difficult bother. Difficult because communication about the entry and exit of money must be done honestly and transparently no alias is hidden. But it becomes easy when mutual trust is awakened and awakened to each other. When you need an impromptu fee and you do not have enough savings, you always have an easy way, ie by applying for a loan to legal money lenders in Singapore. However, you still need to know how to manage household finances as this is important. Here are some steps to manage household finances.
1. Projected One Month Income
The first step is to project the income to be earned in one month. Do this ahead of the payday date. Of course, the husband and wife already know how much their fixed income from work. But this projection means to calculate how much income comes from the rented house, the dividends from the investment, the overtime in the office, the money from the odd jobs, the profits from the small business, and so on.
2. Allocate For Savings And Investments
Of the total income, please calculate and set aside 25% -30% for savings and investment. Please set the comparison between the savings and the investment. Typically, savings for large expenditures will occur in the short term.
3. Leave For The Reserve Fund
The rest of the projected revenue and expenditure fall into the reserve fund category. This fund must be prepared to anticipate urgent needs, such as in case of accident, accident, and school children need. This reserve fund is usually 6-12 times the monthly expenditure. To set up a reserve fund is often difficult because the need is not clear in what form, how much, and when it will happen, so that the funds are even used for personal enjoyment. But if you can exercise restraint and discipline, you will feel good benefit from this.
4. Write The Plan
The final step is to draw the results from the above 3 steps into a simple plan. This plan is in the form of a table that contains: date, income, expenses, and balance. This table is similar to a savings book. The point is that the various income and expenses that have been imagined in the first and third steps are poured into the table. The arrangement must be a date. So the payday occupies the top part of the table. While the closest to earnings/payday in the next month is stored at the very bottom of the table. Easy, right?