Managing Personal Funds Anticipating Financial-breakdown

Seatoday.com – Jakarta. Managing personal funds is sometimes ignored. Many people are not used to evaluating personal finances and experience financial breakdowns.

Uncontrolled spending results in bankruptcy, even though we already have a good income. Let's start evaluating personal finances for healthy financial conditions. Here are the steps you can take.

Calculate the ratio of debt to total income
For those who have debt, whether productive or consumptive, calculate the ratio of the debt to income. If the ratio is 30 percent of total income, it is still safe. However, if it is more than that, our finances are in the unhealthy category.

Evaluate savings conditions for a year
Calculating the amount of savings aims to find out whether the savings have met the target or been used for unnecessary things. If you use up your savings, replace it immediately to reach your target.

Pay Attention to Asset Growth
If we have several assets such as property or business shops, we need to pay attention to whether these assets are growing or disrupting our finances. If the growth is positive, it can be maintained or increased.

Provide Emergency and Retirement Funds
From the productive age, we can start preparing these two savings. These funds can help us at any time when we are in a desperate situation or are no longer able to work.

Evaluate expenses regularly
After calculating income, debt, savings, and investments, we need to evaluate whether our expenses are to the budget. This evaluation is carried out to avoid waste of money.

We can do several ways to evaluate personal finances so that the conditions are safe. If it is unhealthy, we should start reorganizing our strategy by planning our finances or asking for help from a financial planner.

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