The area of personal finance covers a broad variety of topics involving money which include areas such as budgeting, expenses, debt, saving, retirement and personal insurance among lots and lots of others. It can almost seem a little overwhelming for those of us without a good plan how to tackle it. Understanding how all of your incomes and expenses work together can lay the groundwork for a solid financial foundation for you and your family.
My advice if you feel that you're a little over your head financially is create you own personal financial statement. A statement, done the right way, acts as financial roadmap; guiding you from where you are now to where we want to be tomorrow. A personal financial statement can also provide fixed points of reference when measuring progress over a period of time. They also help you make smart decisions about financial matters.
Here is how you can create you own personal financial report quickly, easily, and most important, correctly:
- The first thing you need to do is find the type of financial report which will be the easiest for you to maintain on a monthly basis and for this I recommend Microsoft Office. Their programs make it quite simple to use. You can even find some pre-formed financial reports and monthly ledgers at most of the leading office supply stores.
- Organize all of your monthly bills together and then and separate them into categories for housing, utilities, medical expenses, school loans, and car payments. There should also be a separate category put together for things like dining out and other miscellaneous expenses.
- Now that you have your entire monthly expenses organized, begin to enter them into your personal financial report by whether or not they are tax deductible. Also make sure it contains payments you make on both an annual or semi-annual basis, like insurance. This is done by dividing the annual payment into twelve equal installments.
- Gather all of your sources of incomes such as pay stubs from work, pensions, retirement income, rentals, child support, etc., and add them all together. Simply divide your payout by twelve, if you receive an annual payout, for determining what your monthly income would be.
- Once again, you're working in the financial report. In the appropriate space enter you total income, the net amount from your paycheck. Your net amount would be the amount you take home after all the taxes have been deducted.
- The total amount of all of your monthly expenses should next be added together. Once you have that number, enter that into the financial report.
- Subtract the number you get as your total monthly expenses from the total monthly income you figured out earlier. That amount is your monthly cash flow which could then be saved or used for extras expenses.
- Keep the financial report up to date every month by choosing at least one day a month for updating.
Merit Capital Advance looks at the big picture by offering a financing program that provides small businesses with fast business cash. It is the most convenient way to get a small business cash advance when you need it most. Visit Merit Capital Advance at http://www.meritcapitaladvance.com.
See Also : bosch miter saw 3915 acne invesment money-online
ไม่มีความคิดเห็น:
แสดงความคิดเห็น