Manage information

You must manage the information you have into three parts. The third part will be used to create a budget.
1. What is your income:
Collect all types of income, such as: including “net pay” after deducting taxes, commissions, bonuses, social security or pension, disability income guarantee, interest rates, dividends, alimony and others.
2. how much money you spend:
Collect all the fixed expenses and variable expenses is not fixed. Fixed expenses are expenses that were not changed every month, for example, rent, loans, insurance, loan payments, savings, retirement, tuition money  and others. and usually can’t be bothered to sue. Expenditure not fixed variable is spending amounts can vary and can be reduced or eliminated, for example subscription cable television, daily shopping money, gasoline, telephone bill, and others. and can be reduced or eliminated.
3. the amount of the end:
Subtract the total expenditure by total revenue. The result is a reduction in the budget balance. If expenses greater than income, showing unhealthy budget conditions. If the expenditure is less than income, then the remaining amount of the remaining Amount is called “discretionary income”. This is the amount that can be used for emergency purposes or in order to meet the target savings and budget. And it shows a healthy budget conditions.

Step 3: Understand your current financial position

After all the information is collected, you can view the relationship between income and expenditure. You can use the number perspiration when making a budget for the first time, because it takes time to understand your actual financial position. At least this information can give you an idea of shopping behavior is good and true.

Step 4: check the amount of the end

The number of late you have is the difference between your income and the amount of your expenses. These figures give an indication of whether you are spending too much money or not. If the number is positive, you can increase the amount of your savings and if the number is negative, it means you’re spending more money than income.

If you spend more than 15% to 20% of its net income to pay debts and credit cards, chances are you’re in the danger zone. If the final amount is negative, you should re-examine your expenses, especially those that are not fixed, so your shopping habits back in control.

Step 5: write down the expenditure

After you do a calculation of budget stages beginning, start noting the monthly expenses. Even if your final amount is positive, it’s good you understand your spending pattern during this time.

Carry a small notebook to anywhere you go to take down spending and withdrawal of money. Of note is that you do, you could be surprised to find your spending patterns. Many people are realizing that they can spend millions of dollars just to buy snacks, dress or pay the Bills. Usually the problem arising from the purchase of goods is not important, that otherwise no matter not actually purchased anything. The purpose of this registry is to see patterns and the amount of your expenses.

If you feel your finances chaotic turned upside down, try to implement measures to make budget and planning below so you can get back in control of your finances. Maybe you need some time to fix the pattern of spending, but You need to continue to adapt to get financial planning that best suits your financial condition and behavior.

Set the spending isn’t easy, so please include your family in planning this. They can also help your financial arrangements. In addition, the changes you make may affect them too, so they should be involved in the process of making a budget.

To avoid financial problems, we need to build good habits in managing finances. Several ways of managing finances properly is as follows:

Make A Budget

The habit of making a budget is the initial step of managing their finances properly. Financial budget can be a powerful tool to break away from the pile of debt and maintaining the credibility of your credit.

The budget also helps you manage your spending, because it gives information on money coming in, how much money has been issued and the use of the money Budget can provide information about any action that should be performed to manage finances are healthy. The budget can identify spending any less important, so you can allocate funds to other things that are more useful.

TIPS

A budget can help you to:

-Control the financial condition
-Avoid financial problems
-Be smart consumers
-Determine and achieve financial targets
-Planning for the future

Build good habits to avoid problems

One of the most careful though someday could find himself having too much debt. Often the financial crisis happen due to events beyond your control. It is possible that you or other family members lost their jobs or suffered severe pain. But of course the financial crisis could also be caused by spending habits are unhealthy. Whatever the reason, there are many people who have financial problems Indonesia

stages of budgeting:

1. Determine financial goals
To be financially independent, start by determining the financial objectives of short, medium, and long. Ask a number of questions to yourself to help you clarify the objectives financially. What is Your top priority, whatever your needs are, and what is your desire?

2. Collect a variety of personal financial information
The next stage, collect all income and expenditure data. The Data should you collect in between the salary for that already work or allowance from parents, credit card bills, payment of goods which become primary needs, and more.

Then do the classification of data into three parts for the basis to make a budget. The first part, i.e., earnings, earnings from the entire summing these all sources of income. The second part, i.e. the expenditure, expenditure remained as summing these all home mortgage, and spending money on gasoline, variables such as phone, and more. Third is the bottom line, i.e. the difference between the income and expenditures that will give you size does your spending has been excessive.

See Your bottom line, if the difference is positive then you could set aside more funds to save money or raise the amount of payment or credit card debt. If the difference is negative, it means you spend more than income.

“If you spend more than 15-20 per cent of net salary, plus payment of debt or credit card bills, you are on dangerous position. Thorough back your expenses, especially expenditure variables to control spending. Do not get the salary of Rp 5 million but spending a month Rp 7 million, “Hotman said. “If necessary, write down the monthly expenses,” he added.

3. reduce expenses!
Many people are spending money for goods which actually they don’t need, although perhaps she wanted. Therefore, you need to monitor your spending with small notes always bring. These notes will help you recognize the spending habits of each month. Of course you need to discipline records all daily and monthly expenditure in this entry.

Even though the bottom line you are positive, the habit of reducing spending still needs to be applied. Start by bringing food from home and eating in restaurants. Subtract also the habit of drinking coffee and eating at fast food restaurants. “You could save USD $ 5 million per year if the habit of drinking coffee is Rp 20,000 per day could be reduced,” Hotman suggestions. Quit the habit of smoking a pack a day can also save some Rp 1 million per month.

4. make a budget formula
The last stage in drawing up the budget was made formulations. Determine the composition of the budget presentation from your monthly salary. Like what percent you  for savings, the cost of the rent or mortgage, food, clothing, transportation, sightseeing, and more.

You can adopt the composition of the budget as described Ligwina  financial planner on the occasion  is different. Ligwina suggests, the composition of the debt repayments are a maximum of 30 per cent; insurance premium, composition of household, transportation needs, the needs of children and families, as well as health is 20-40 per cent of earnings; the composition of your personal needs like shopping for clothes, grooming salon, or buy a gadget is 20 percent. The rest, about 10-30 per cent, is to be saved as an emergency fund.

• As you review your budget and your net worth, you might decide to save more money.
• Save it sometimes seems difficult, but doable if you have a plan. Many people do not have a formal savings plan, and without one, the chances of saving enough money to cum plir the long-term financial goals or achieve financial security are very slim.
• Instead of waiting until you have “extra” money to save, create a savings plan. Having a budget will help generate the money to save.
• Cost to set goals, most people find they can save regularly than you think.

At first, the amount saved is less important than the fact of saving regularly.

• If the amount you decide to save each week or each month is seen as an obligation, as a payment of a debt, the idea of ??”pay yourself first” can become a serious commitment.
• Start with an amount you are sure you can save, to develop a sense of accomplishment rather than frustration.

If you already have identified your financial goals and has established a plan to achieve them , you can set a budget to save money you need. You may think you do not need to do this, but we can all benefit from a budget. Have you ever started the day with $ 20 and at the end of the day, do not know where he spent? If that is the case, you might want to develop a budget.

A budget is a tool to help you understand how you spend your money.
If you own a business, budgeting knowledge will help you understand how to enter and exit the flow of money.
There are three steps to create a budget:
Identify your net monthly income
Identify the money that comes into your home after making all deductions, including taxes, Social Security, etc.
Identify Monthly Expenses
Their costs are all the things you spend money. Be sure to include expenses such as rent and telephone bills and expenses that occur periodically as the car insurance and medical bills.
Subtract your monthly expenses from your income
If you still have money you can decide how to spend or save. If your expenses exceed your income, you and your family have to decide what expenses can be reduced or decide how to get more revenue.

Just direct us towards saving tips!

1. Use the Back

When you shop, look for items that you can use again. A simple example is the battery that you can re-charge, rather than disposable batteries. The price initially is more expensive than ordinary batteries, but as time progresses you will certainly find it useful.

2. Financial Plan

Everyone should have a financial plan. One of the best ways to save money is by writing down your expenses. In general, when someone does not know where their money went, then when they see the spending records on paper, they will be surprised and immediately change their bad habits.

3. Self to please

Set aside funds for your own pleasure, lest you forget the self sendir! Even though your budget is low, you should not forget to give yourself pleasure, such as buying new clothes or go out to eat your favorite food at the restaurant. Do not let yourself be constrained by the scarcity mindset. Remember the law of abundance, “The Law of Abundance”: this world will pleasure of God abound, including money. You only need to control how you use it.

People are always trying to save money, especially if economic conditions are deteriorating. Whatever your reason for saving, you will find various tips and tricks that you can apply. Saving money is actually not difficult, and you just need a little creative to learn whatever ways you can apply for saving.

There are many ways you can do to save money. Although seemingly only a few ways you can make a little money set aside, but when you continue to do so, then in the end you will see how much money you save. You need to remember, that saving is not only set aside money. Saving money is something that you encounter in your everyday life. Saving money is how you live and how you choose the possibilities that exist in life.

Have you ever heard the expression, “Rome wasn’t built in a day”?

Yes, the city of Rome was not completed in a single day, and so will your bank account.

Believe in yourself that it is never too late to save, regardless of your current age. Arrange your mind, and believe that now is the time to start building the future.

It has a habit of saving is obviously very useful for our future. Saving money is saving some money to be used at a later date if necessary. More and more money to save the better. There is a saying that says “saving the base of the rich”, this means if we diligently save lots of money and the simple life is not excessive then eventually we will be able to enjoy a happy outcome.

Do not forget that saving money is finite. Pay tax liability and your alms before saving as well as practice some of the money we are to worship for a happier future in the next life.

Familiarize yourself from the small saving will be able to establish the nature of saving, thinking far ahead, not selfish, impatient, and so forth. Therefore if we have children then educate our children to become savers accomplished. But avoid excessive saving or concerns on the perception of future needs that we do not become negative for those who have a stingy or miserly nature.

Take the time to find out what exactly triggers your spending. When you are depressed, stressed, sad, happy, or whatever it is, whether you spend more money? As you already know what the trigger, then you can learn to control it. For example, if you recently laid off from work, even though you have little money, maybe you have a “need ” strong to spend money. Then, maybe you noticed that when you’re bored, you’ll go shopping. Now, by knowing what causes it, then you can change the way you cope with boredom, sadness, or other triggers. Look for other more useful ways.

Avoid temptation

If you have a weakness, stay away. For example if you are easily tempted when looking at shoes, then do not stop at the shoe store when traveling. Avoiding temptation is hard, but saving money is also important. When you want to satisfy the urge of temptation before, you can use a special fund that you have saved for the sake of pleasure

The rule is very simple, if you spend less than you earn money you can have financial freedom and prosperity that are looking for.

By spending less than I earn money, can I have a retirement fund or to accumulate capital to start a new business idea. The issue is very simple to say but the truth is that very few people follow that rule.

Obviously no one is ever free of a personal problem as an illness or something, but these are exceptional cases, it is usual for most people usually ever spend more than what they have and when they do is they come economic problems and personal anxieties.

Money Acumulating on the website give us a list of 10 possible reasons for this is the case. Following the review which I think are most important because the best way to change a bad habit or bad habit is to understand first that such a situation can occur:

1. A psychological effect. You want to feel more successful than you really are spending money you do not have. Usually one sees the friend bought a new jean or neighbor bought a new car and you want to emulate or surpass. What may be happening is that your friend or neighbor can not buy the jeans or truck and are in debt as you want to.

2. Ignoring the truth. One tries to avoid the truth of what one can actually spend and for example does not check a quote or high interest credit card, there is a game espceie the ostrich which buries its head to avoid seeing the problem.

3. Before you spend money. This brings us to spend money we do not believe that tomorrow we will be in January or February we spent the bonus that will give us in December. Expected to have the bonus before spending it.

4. Try to keep your lifestyle. Many spend more, the more money we have very quickly but when the reverse happens, ie when for some reason our income goes down, do not act the same way and we reduce our costs.

5. We can not say no. One must learn to say no, if your son or your wife or your girlfriend or your friends say you’re going to do this or that, or buy this or that other, one must learn to say NO.

Try today to order your life and spend less money than you’re earning. Not only achieve financial freedom but will be looking a little happier.