Business and Finance Corner

Posts Tagged ‘saving 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.

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.