For those of you who never did the recording of expenditure will definitely assume that making a budget that's not too important to be done.
Maybe once in a while you could borrow money from friends or relatives, and still could be well managed. But did you know that by making a family budget, then you will be able to perform the mapping of income and expenses so you no longer need to borrow from relatives or friends?
By creating a family budget, income and expenses, then you will be able to find out the approximate amount of income and expenditure in one period.
For example, for a monthly budget. You can estimate the amount of monthly salary income. As for expenditure, do the details of the entire expenditure would do in a month.
How many sections for savings, investment, insurance, tuition, housemaid, clothes, gas, water, electricity, car servicing. The entire sections we add, so it will be known in the month you're a deficit or surplus.
If surplus in the month then you can breathe relief. The surplus you can save for an emergency fund or other funding. If the deficit, then close the deficit from savings or other sources.
Other advantage making the budget is that you can see which section is the largest section of the income and expenditure. If you have diverse sources of income, you can know where the largest income comes from .
Similarly for expenditure, you can find out where the greatest percentage of your expenditure section.
You can do an evaluation and modification on the expenditure in order to achieve the ideal amount. For example, the share of spending on debt repayments should range in the amount of 30% of the monthly income.
By creating a family budget, you will also have a record that serves as a guide for the evaluation of the above conditions of income and expenditure in the following months.
The trick is to do the recording over the realization of revenue and expenditure. If you have budgeted revenue of USD 10,000 in September, then its realization was only USD 9,000. Then you can evaluate why it could happen.
Is it because there is a salary payment is late, or the number of a monthly bonus is reduced because the performance is not as good as previous months. Similarly for spending, by knowing the realization expenses for the cost of lunch, you can compare it with the budget that you have created.
If its realization is too large, maybe in the next month you can reduce the frequency of eating lunch outside, or find another place to eat cheaper, or bring a lunchbox from home. Or if your evaluation says that the cost of lunch outside remains to be preserved it means there are other expenses part number needs to be reduced.
And lastly, one of the functions of the family budget is you can have a complete check list for regular monthly expenses. For example, spending on water, electricity, tuition, children tutoring. You can just give the code that the expenditure has been realized, so no payment is missed.
Source: Detik
