Business and Finance Corner

Posts Tagged ‘finance management’

Dizziness with heaps bills each month, try to apply the following steps

Create a list of debts

Initially quite complicated to merge all documents into one. However, this can allow you to pay all the bills on a regular basis. List in detail the number of each bill, pay each month, and increase interest.  Put in your loan money from friends to your list of debts.

Come on, break your bills

Distinguish the debt trap and can still be tolerated. Mortgages and car installments can be categorized as a debt with a number of bills that keep the same from time to time. Another case with a value of credit card receivables will continue to increase interest and make you more and more hooked.

The main priority

Arrange the highest level of interest charges. Then prioritize your bill payments from a list of debts. Pay all debts as minimum as possible so that the flowers do not hold sped up. Ignore your needs are not too important

Very easy for you to slip in managing finances, if no other person involved overseeing financial affairs. Rather than continue to feel alone taking care of financial problems, why not find a friend to remind each other?

Money buddy is the term to refer to someone you trust, who have financial goals similar to yours. In order for this buddy relationship with money smoothly, follow the following measures:

1. Create an agreement to sit together and share their strategies and investment budgets.

2. Plan regular meetings, eg once a week, to check if you are both still be on the right track. Peel back spending over the last week and encountered obstacles.

3. During the meeting, planned spending for the week ahead. Give the plan in advance to the money your buddy about it, and how much money the plan will be issued. It is useful to help you avoid the temptation to spend more money than planned.

4. Create an agreement to set aside some money each week, if you both managed to comply with the budget plan. Thus, after some time you and your friends can reward themselves with small pleasures, such as outdoor dining or a visit to a spa.

Whatever your job, and regardless of income every month, should be better managed to avoid a deficit. Management and proper financial planning will give the solution of financial problems. Including developing self-sufficiency, particularly for women heads of households.

Steps that can begin women in managing finances:

1. Paying off debt
Although financial management already cluttered, not too late to fix it. Especially if you have the amount payable for patchwork. Start setting aside money from revenue to pay debt. However the debt to your obligations. Unpaid debt, will gradually destroy your credibility. Your reputation is at stake if the liability (debt) still not settled. Allocate a maximum of 30 percent from a month to pay salaries or debt repayments.

2. Save
Convince yourself, that regardless of the value of income, so can be set aside for saving. Allocate funds 10-20 percent of income for savings. To be able to carry out this plan, limit consumption. Women often tempted by any of the goods purchased is actually not too important. In fact, sometimes only carry the influence of friends or a trend. Begin firmly to yourself, by making the priority needs of a much more important.

3. Emergency Fund
Prepare also a reserve fund as an emergency fund. There will always be unforeseen needs, such as serious illness and should be treated. Hospitals need not cost a bit right? Start setting aside funds amounting to five percent of monthly income. Prepare an emergency fund up to six months ahead. As a precaution, make a special passive account for emergency funds, or acting as a savings. Separate accounts are passively activated from the special account for everyday needs.

4. Insurance
After deducting the monthly routine needs, paying debt, saving, and preparation of emergency funds, the remaining income can be used to buy insurance.

Polar life insurance for the head of the family. Anyone who has become the backbone of the family, woman or man, should have life insurance. Because if anything happens to the head of the family, family life can still walk and given of insurance for a specified time.

In addition to life insurance, other insurance types that can also be given priority among health insurance. Also insured property, let alone used to do business, such as kiosks or stores.

5. Investment
Set aside money for investment, should be done after obligations have been fulfilled. The simple shapes, if you have more funds, invest your money in gold. But you should be careful when investing gold, notice and understand the value of sales and quality.

Allocating money for investments can be taken from other revenue sources. As THR, bonus, inheritance, or other income outside the main income. Many kinds of investments, the risk varies, as well as with its investment in the future. Should identify more carefully before selecting an investment product.

If all five of this obligation has been fulfilled, monitor expenditure and adjust the plan that has been built. Disciplined use the money to be key to the success of financial management. 5 Obligations in Managing Money

Whatever your job, and regardless of income every month, should be better managed to avoid a deficit. Management and proper financial planning will give the solution of financial problems. Including developing self-sufficiency, particularly for women heads of households.

Nini Sumohandoyo, Corporate Marketing & Communications Director, Prudential Indonesia said, women are often denied could never spare the money. Including to save let alone invest. In fact, by reducing the consumption of goods that are less important (with limited financial conditions), such as jewelry or clothing different variations of the model and color, women can set aside Rp 300,000 each month.

“By leaving money USD $ 300 000 only, women can save money, have insurance or other investments,” said Nini, on the sidelines of financial planning and management training for 300 women street vendors, held by Indonesia at Wisma Prudential Mandiri, Jakarta, Wednesday (14 / 7 / 2010).

Nini describes steps that can begin women in managing finances:

1. Paying off debt
Although financial management already cluttered, not too late to fix it. Especially if you have the amount payable for patchwork. Start setting aside money from revenue to pay debt. However the debt to your obligations. Unpaid debt, will gradually destroy your credibility. Your reputation is at stake if the liability (debt) still not settled. Allocate a maximum of 30 percent from a month to pay salaries or debt repayments.

2. Save
Convince yourself, that regardless of the value of income, so can be set aside for saving. Allocate funds 10-20 percent of income for savings. To be able to carry out this plan, limit consumption. Women often tempted by any of the goods purchased is actually not too important. In fact, sometimes only carry the influence of friends or a trend. Begin firmly to yourself, by making the priority needs of a much more important.

3. Emergency Fund
Prepare also a reserve fund as an emergency fund. There will always be unforeseen needs, such as serious illness and should be treated. Hospitals need not cost a bit right? Start setting aside funds amounting to five percent of monthly income. Prepare an emergency fund up to six months ahead. As a precaution, make a special passive account for emergency funds, or acting as a savings. Separate accounts are passively activated from the special account for everyday needs.

4. Insurance
After deducting the monthly routine needs, paying debt, saving, and preparation of emergency funds, the remaining income can be used to buy insurance.

Polar life insurance for the head of the family. Anyone who has become the backbone of the family, woman or man, should have life insurance. Because if anything happens to the head of the family, family life can still walk and dinafkahi of insurance for a specified time.

In addition to life insurance, other insurance types that can also be given priority among health insurance. Also insured property, let alone used to do business, such as kiosks or stores.

5. Investment
Set aside money for investment, should be done after obligations have been fulfilled. The simple shapes, if you have more funds, invest your money in gold. But you should be careful when investing gold, notice and understand the value of sales and quality.

Allocating money for investments can be taken from other revenue sources. As THR, bonus, inheritance, or other income outside the main income. Many kinds of investments, the risk varies, as well as with its investment in the future. Should identify more carefully before selecting an investment product.

If all five of this obligation has been fulfilled, monitor expenditure and adjust the plan that has been built. Disciplined use the money to be key to the success of financial management.

It was hard to believe if any man in this world which is free from bondage of debt. For instance, buying a home in need of funds so that forces us to get into debt. Not to mention the cost of school children to college. Often, these conditions make difficult to escape from the hands of debt. How do I fix this?

The good debt
Talking about debt, ideally not reach 36 percent of your gross income. And, this benchmark is usually viewed by the bank when it will lend money to spend, put it to the house.

However, it is also wise if you stay out of debt because it means that all earnings will be sucked in to meet the needs of big budget so there was no reserve fund for emergency purposes.

If so, what should be done by couples when faced with debt?

First, know what is meant by good debt and bad debt. Definition of good debt is anything that you need, but can not be obtained, except by selling all assets.

Examples of good debt is to buy a home. The reason, less likely to pay off the purchase of homes at once. But do not be too ambitious in buying dream home, make sure you have calculated in financial terms during the installment lasts. Clearly, the lower your loan, also shorter time installments.

Beware of bad debt
So, what is called a bad debt? He is a good or service that is not really necessary, but you want it, when earnings did not suffice. Characteristic is usually purely for instant consumption, making your net income shrinks, removing the possibility for investment or a bigger income. Worst cases of mismanagement of this case is the use of credit cards that are usually high-interest.

If you do not want bad debt, which must be done is simple, namely to know where the analysis of spending patterns and that’s not important or not needed. For example, when I went shopping for a monthly, you are often tempted to buy an electronic device or accessory, which does not need to be purchased. Avoid this habit to establish intent or a detailed list of groceries from home.

Divert also mindset when shopping. Do not think, “I’ve worked hard, I deserve to buy clothes for many millions or beach vacation to X which cost tens of millions”. But in fact, your credit card debt has soared, reaching millions. Would not be better diverted funds to pay the mortgage?

It is not allowed, you know, use a credit card. However, a better use for the needs of large or sudden. Like when the ill family member, a credit card could be used to pay for treatment advances in hospital while waiting for the fuse of health insurance claims.

Do not forget to always pay credit card bills. Try to pay higher than minimum payments, yes. However, it is better if you prioritize paying credit card bills with the highest interest and specify a limit on payments per month without disturbing the other primary needs.

There are still options
So what if the debt has been climbing, is it too late? The important thing is do not panic because it will not solve the problem, even complicate. Stay focused on main goal, ie pay it off.

Although it took a long time and have to sacrifice some secondary needs, in the end all for your good, right? Do not also continue the habit of debt, no need to panic if you see something you want to buy. Always think carefully, whether you really need it? If yes, you can save money or if you are saving less reliable, just follow the program in a bank savings plan.

Finally, it must be noted that basically is not how much fresh funds owned, but is there a way to make your money “work hard” so that it can generate more money as investments.