4 Smart Ways to Manage Household Finances

Money / 13 September, 2019

4 Smart Ways to Manage Household Finances

Calculate all income
All Income Calculations

All Income Calculations

The initial step in managing household finances is to add up all the income earned, from monthly salaries, overtime pay, additional income, to investment returns. Website Bandar Togel313 Terpercaya. The aim is to find out how much funding can be allocated for each need, namely primary, secondary, and tertiary needs.

2. Arrange priority expenditure plans in a month
After calculating income, write down the household expenditure plan from the most important alias priority. Starting from spending on food and drink, transportation, paying utility bills, water, rental housing, debt or credit card installments, and other routine costs.

3. Allocate for savings, insurance, and investment
Set aside 25-30% of total income for savings, insurance, and investment. For example, 10% for savings, 5% for paying health insurance premiums, and 15% for investment. All three have their respective benefits. Savings can be used to buy a house, pay for unexpected needs, and others.

While health insurance is protected, and investments are beneficial to play, so it does not run out. In fact, many people choose investments to double money.

Also Read: Here Is the Way Islam Organizes Finances to Live Barokah

4. Prepare a reserve fund
The need for this one is no less important. 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.