2 Smart Ways to Manage Household Finances

Money / 12 September, 2019

2 Smart Ways to Manage Household Finances

Prepare a reserve fund
The need for this one is no less important. Website QQIBS Terpercaya. Allocate a budget for reserve funds or emergency funds. This reserve fund is used for urgent purposes. Reserve funds are free, meaning you can set aside anything for this post. In this case, you need a commitment not to disturb the reserve fund if there is no urgent need until the end of the month. Unless you want to use this fund for investment.

1. Differentiate your needs and desires
If you have allocated money for important budget items above, and it turns out there is still money left, then you can allocate funds for secondary (support) and tertiary (luxury) needs, such as shopping for clothes, cosmetics, shoes, traveling, buying a cellphone , or other expenses. But remember you must see the need. If you really need new shoes, because the old ones are already broken, then you can shop. Do not get hungry eyes, frantically shopping for a moment’s desire.

2. Keep Debt Ratio
Maintain the debt ratio
Maintain the debt ratio

To keep your finances stable, don’t be in a mess, keep your debt ratio. Try no more than 30% of your main income. Because if more than that, then your income is only used up a month to pay the debt repayments. Or you are forced to cut other postal budgets so that you are ‘saved’ from the debt pile. Therefore, not only do a healthy life, but also maintain a healthy debt ratio of a maximum of 30%.