undercover.co.id – Although they have regular incomes, many people do not know the real condition of their personal finances. Whether it’s in healthy condition or otherwise it is almost bankrupt. Once you get caught in difficult situation, you just realize your financial are in trouble.
periodically you should evaluate the financial condition. Here are five signs whether your personal or family finances are in a healthy condition or not. If your finances are not good, then you should immediately fix them back to normal.
One sign if you have a fairly healthy financial condition is when you know the exact amount of the net income, which is your gross income after income tax deduction and pay the bills. The amount of your net income is very important because that’s what you have to afford other needs.
You should know all of your own and record each of your expenses per month. You need to have a list of expenses for a month in order to know what is the biggest spending or which one of your spending that out of the budget needing to be handled. By recording monthly expenses, you control your expenses in keeping the budget so that you have the money to be saved and invested.
Investment is very important for everyone with an income. These investments are necessary to finances your needs in the future. Whether to finances the education of the children or other needs.
One sign of your healthy finances is that you know exactly what kind of needs to be fulfilled by the investment. Besides, you should know the value of investment because you set aside each month from your budget to pay that.
This investment is excluded from contributions or monthly premiums for healthcare insurance, accident insurance and so forth. In the other hand, you know the yields on the investment so you can calculate how much income you’ll earn in the form of such investment.
Most of you may not be so aware of the importance to know your own total assets nominal or net worth. According to a simple calculation, the wealth or net worth is the difference between total assets and total liabilities.
5 Ways to Know you’re in Healthy Financial Condition or Not Assets such as houses and cars can be taken into account in setting the net worth. If your net worth is still a surplus, you may feel relieved, but otherwise if the result is negative. You also have to begin to pay attention to your financial situation more seriously by making changes in the new financial planning.
Value of Debt
You need to always maintain the ratio of debt to income by always checking your finances. Make sure that the debt ratio is not greater than 50 percent of your monthly income. If larger, you should be prepared to find out additional revenue sources or you can also reduce the amount of debt, in order you can make both ends meet.
6 Quick Strategies Free You from Choking Debt
June 16, 2014 |Posted by Compareas | Creditcard
Everyone is aware that the sooner they pay the debt is the better. However, many people don’t know if there are proven strategies that should be considered if they want to be debt-free faster.
The “free from debt” Strategies are not so difficult. All you need is the commitment and seriousness to do so.
- Do not owe more
This is the first thing you have to do to be debt-free. If you continue adding the debt, it would be difficult to create and run a long-term plan to clear your debt.
The easiest way to be debt-free is to stop using credit cards. If you want to go shopping, use cash or your debit card.
- Sort your debts
Make a list of all your debts, and put the debt with the largest interest in on top of the list. It’s better to pay the debt with the highest interest in the first place because interest is the component that causes your debts bigger.
- Pay more than the minimum
All debts have a minimum you must pay per month. If you want to be free from the trap of debt, then you have to pay more than the minimum. Having extra money to pay above the minimum, you must, whether you like or not, sacrifice the “not important” spending, like going to the movies, or reduce costs, such as paying less money for the phone vouchers.
Do not forget to pay before the due date, for each time you pass the due date, it means you will be fined.
- Balance transfer
If you have more than one credit card, you can put your debts to a credit card that has the lowest interest. Divert it up to the limit of the credit card.
Then, you should focus on paying the debt, as soon as possible, that you collect into that credit card. After you remove the debt on that credit card, repeat from the start again and moving to the rest of the credit card debts.
- Renegotiate your debts
You can renegotiate the terms and rules of your debts, such as the amount of interest and payment terms, with the lenders. This is possible because lenders also require money from your payback to them.
- Ask for help from the family
You can also ask your family or close friends by asking them whether they could lend you some money. You could offer the interest on this loan, but at a lower level than the bank. Even if you borrow from your family, you still have to pay your debt back with a strong commitment because you can create a new problem when you fail to pay.
Thus some inputs about the ways to get you out from debt as soon as possible. Good luck! 5 Ways to Know you’re in Healthy Financial Condition or Not