Question: How to design the family finances so that each month are not only out for monthly expenses, but can also be set aside for savings and investments?
Answer: First, we must have a budget first. If we do not know where the money goes each month, we certainly can not control the money. There are 4 major categories of expenditure items every month. (1) Saving or Investment Routine, (2) Installment, (3) Routine expenditures, (4) Expenditures Lifestyle / Personal. To create a budget, note this:
First, do not wait for "rest" every month to save or invest-start with a commitment to save or invest regularly. Not a nominal amount being targeted, but the percentage is. Cut the first 10% -30% of their income as you receive it-allocate to savings or investments. In this way, regardless of the amount of salary / income, if the number is increasing every year, the amount of commitment can be improved.
Second, you set financial goals. Can of expenditure such as lifestyle destination buy bags, or direct primary purpose, such as education funding. This is important because it determines the direction. When saving / investment without financial goals, we will lose direction and begin to sabotage the effort to save.
Third, note this: There's no such thing as "unexpected expenses". So, the budget for everything. So if for example there are relatives who are married, there is funding for the prize. It could also set up "Emergency Fund"-when conditions are true emergencies, so it will not interfere with existing monthly expenditure items neatly organized.
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