trapez-finance.org >> Tips Saving Installment When You have much Debt

I think we all are always confused how to set up a series of income with household expense that tend to increase, without having to come up short? Until when the saying “bigger stake than the pole” is continuing? Can we still save money or have more money amid these conditions? The answer would be, if we discipline ourselves to manage money through the name “budget” or the terms “budget”.

Below we propose a number of steps needed to your family do on the saving budget are:
1. Make a list of expenses and income
You do realize how long the list of expenses compared with a list of income! List can contain 10-20 expenses while earning only post 1-2 posts. Obviously easier to spend money than make money. So start make a list of expenses and income now!

2. Determine the amount of funds that would save in front
Often set aside funds for savings to be the last priority. What happens is only a desire to save, because there was no longer funding available for exclusion. Therefore the formula that should be remembered is this, income (net) - savings = expenses. After “cleaning” of income by paying charity, saving also should be the next priority of the management of your finances. Not rated how much how much you can save, but to build habits that are most important savings.

3. Set a list of expenditures to the expenses
Enter a list of your expenses into a post which is divided into 3 major categories namely:

a. Postal savings deposits, investments, insurance premiums, and others. Sent at least 10 percent of income. For this case, it is advisable to save at least 10% per month. Remember, families need to invest begins with an emergency fund, which for a family with one child approximately 9x routine monthly expenses. If you assume 50 percent of routine expenditures of the monthly income or $250 then this family needs to raise an emergency fund that reaching $2250 if the current assessed. This emergency fund is important to overcome the conditions of its funding needs for emergency / urgent.

b. Routine expenditure items, such as debt repayments, monthly spending money, personal expenses, tuition, and so forth. The maximum loan repayment ratio of 35 percent of revenues, while the portion of non-mortgage debt up to 15% mortgages. For this case, indeed if mortgage debt is too large. Better home loan mortgage , if the respective no consumer debt such as credit cards. But if you user consumer credit, the mortgage repayments should be a maximum of 25% per month. Meanwhile, other routine expenses ratio reaches 50-55 percent of revenues. For this case $250 for the monthly shopping, personal expenses, tuition, and others.

c. Heading non-routine purposes, such as maintenance / repairs, air conditioning service, installment UN, holidays and other about 5 percent of income.

Do not forget, do the evaluation (budget tracking) every month. Make a scale of priorities for each budgeted expenditure (needs and not wants). And finally, always be careful and smart in making choices about whether or not to spend money on each of your needs. Use the envelope system to facilitate budget allocation and make simple notes in the booklet so that the entire expenditure measured.

So clearly, manage money in the budget control of monthly expenses. The choice is yours because it pegs should be smaller than the pole!

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