Whit this document, we can learn for our homes how planning and savings goals. This information will be helpful to us, because talk about to prevent financial crisis by being organized and prepared with our finances. This document is for common people like us, and say about how achieve day to day financials obligations with savings plans deducting debt and plan emergency for 3 until 6 months.
The keys for have good result from the financial planning its good record keep and be consistent in our plans. For creating a Budget we need to see or know our financial status and see the expense that well is cut.
This document show steps like that:
1. Organize your financial information like bank statements, monthly bills, and prior 6 months banks statements. With this information we can figurate out average monthly net income.
2. Calculate out average monthly, like basics needs for live like as rent, car payments services as water, light and another more.
3. Calculate the monthly balance subtracting monthly expenses, because with that, we can know how much money we should to have. But if we have a negative balance its necessary cut the expenses
4. So if we have a negative balance, we need to find in our expenses where we can cut or reduce spending
It’s necessary to know too, the next tip: “not to carry debt that exceeds 20% of your take home pay” if the families have bad habits about debt accumulation, it’s easier being in financial crisis.
So, it’s important to show you some methods that were named in the original text:
1. Reduce total credit card debt by %
2. Pay all debt from credit card
It’s important to setting savings goals, so start to save a few money to purchase specific, because this step it’s good to start to have good financial habits. The first method is establishing an emergency fund about 2 months like our salary for cover 3 or 6 months for life. That it’s because its important have recourses for medical emergencies, replacements and another situations that may occur. The second method talks about save a few percent of income per year.
