Sunday, September 9, 2012

How to organizes Finances

Like ride at the deadliest road, organizing the finances is difficult. Some people is not able to manage their money whereas they have so muc money. Here are some steps to organize the finances:
1. Set the finances goal
Write your goals at the book or your dairy.The finances goal is very simple. Every people want to be health, meaning has house, vehicles, saving and investment. Create a specific goal so you know the goal exactly. Example, you want a million dollar when you retire or you want to have a big house. 
The finances goal encourage people to work hard. People often stop to work before they reach the goal. They feel so tired to reach the goal whereas they have not yet hit the goal. Without a goal, they do not what they work for. They have no direct to work. 
2. Track your spending
How much you spend for a month. Compute what you have spend in food, cloth, transportation. You need gasoline to go to office so you must to include the gasoline to your spending list.
The kid spending is also your spending. Compute the food, cloth, and everything of their spending.
3. Create a budget
Having known the financial goals, you can allocate some money for goal. Provide the post at your budget to buy the house as you have write at the financial goals. Set aside paycheck for the house.
The budget can help you to manage your finances. It helps you to compute all income and spending.
4. Compute your net worth
The networth is depict the wealth of someone. The basic formula of net worth is asset minus the liability. The more net worth, the more wealth.
To compute the net worth is not difficult. First, List all asset that you have such as cash, saving, investment, and others. Your house that you buy or car that you have are your assets. Calculate the investment you too. The investment value is the market value now.
Second, list of your liability. Compute the debt you have to some creditor. The car at your garage have been not yet settled from the credit company. You still have the liability to the company. Record the remain of money that you should have as your liability.
Third, Deduct the asset with the liability. If the result is minus, you are in dangerous. You need to reduce the liability and increase the asset.

Read Laso :
Five Things About Loan
Four Financial Goal Mistakes
What is Liquid Net Worth Mean

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