Whatever your dream, a good house, traveling with family to Europe, building a business, all this can be achieved as long as the discipline to set income, divide the portion within budget and priorities.
Lily Ancilla, General Manager of Product Management at Sequis Life Insurance says financial planning does not necessarily require you to tighten our belts.
You can reach your goals / dreams, while still enjoying the income for entertainment, as long as the portion of revenue sharing is done with the discipline of each month. The steps to create a list of budget revenues versus expenditures.
“It would be difficult to achieve the dream that failed to make the list. List is required to monitor or control the finances,” he explained.
Once you determine the purpose, adhere to the discipline of the budget list determines whether you managed to have or do what you want next year.
“After knowing the purpose, there is a measurable time to realize that goal. With discipline and must not violate any month, this goal can be achieved,” he said.
To help you divide the portion of revenue in order to achieve goals, Ancilla suggest doing the division of revenues for the three budgets.
1. Mandatory spending and flexible.
This spending accounted for 50 percent of your monthly income. Surely revenue can come from anywhere. If you just rely on a monthly salary, then that’s the source of your income. If you had additional income, without the need to increase the portion of expenses, the amount of funds allocated for these expenses will certainly increase.
Mandatory spending that inevitably have to be met in general such as: mortgage, insurance, taxes, electricity and water. While expenditures that are negotiable by yourself consists of bills of communication (cell phones), transportation, credit card bills, meals, school children, financial aid for parents.
2. Expenditure indeterminate (can be removed).
Portion is 30 percent of salary. Of which expenses for entertainment, sightseeing, shopping fashion, entertainment. Personal expenses such as this can be arranged as needed can even be eliminated because of its “rah-rah”. You can add a portion of revenue to other parts if you really want to reduce the personal expenses. For example, adding a third budget, namely savings.
Allocate funds 20 percent or more of revenues, in the beginning instead of the rest of all other expenses, for saving. By continuing to add to the savings, let alone you maximize bias by investing, for example, the target you get / have a variety of things can be achieved.
The key, comply with the list of budgetary discipline that has been set up to monitor your finances. Without a budget and discipline, your income evaporates without clear designation. Do not be sorry if then dream never materialized.