Spending plans in the family also need to be carefully considered. The main goal is so that the money you have can be used effectively and efficiently.
So, what is spending planning? How to make a good spending plan? What are the advantages of making an expense plan?
Let’s find out the answers to some of these questions by listening to the following reviews.
Definition of Expenditure Plan
An expenditure plan is a plan that includes various types of spending money within a certain period of time. Expenditure planning is usually done once a month. This adjusts to the income or salary paid every month by the company.
How to Make the Right Expenditure Plan
In a family, financial expenses often occur to meet the needs of daily life. Spending money also needs to be regulated so that the money or savings you have don’t run out in an instant. Therefore, you can follow how to make an expense plan, as follows:
- 50% for Necessity Expenditure
You need to allocate a budget of about 50% of your income for necessities. This expenditure is included in the basic needs that must be met. Because, if these expenses are not met, it will disturb the comfort in your family.
Some examples of expenditure needs are daily food needs, children’s school education costs, payment of PLN bills, PAM, refueling, and others.
- 30% for Wish Expenditure
Everyone wants to fulfill their desires in order to be happy. This is actually human, but the fulfillment of desires should not be done excessively.
In this case, it’s a good idea to allocate around 30% for wish spending. This expenditure is not urgent. So, if the desire cannot be fulfilled, it will not interfere with your life too much.
Some things that include spending desires, among others, the desire to buy a motorbike, car, nice clothes, a collection of luxury bags, and so on.
- 20% for Savings
Next, you also need to consider simple things, but one day they can be very useful and help you in an urgent situation. Yes, that simple thing is savings.
For this, at least you need to allocate about 20% of your income as savings. You can save your savings at home or in the bank to be more secure and get interest on deposits.
The benefits of saving savings funds can be felt for the long term. For example, you can save to buy a car, house, child’s college tuition, or investment.
In certain circumstances, savings funds can also be used as emergency funds. Sometimes, you have planned your life well, including spending on daily necessities. However, things can happen unexpectedly suddenly.
An example is when suddenly an accident occurs, there is a family member who is sick, is hit by a flood disaster, and so on.
Expenditure Plan Advantages
If you are able to make a good spending plan, then you can control your finances and not waste it. In addition, you can also avoid the nature of waste so that your money does not run out quickly.
Do an Evaluation
Another thing you should do is do an evaluation. You can evaluate your expenses every month. Record any overspending or other deficiencies. That way, you can make proper financial planning again the following month.
Come on, make a perfect spending plan from now on. That way, you can manage your funds as well as possible and can save savings for guaranteed life in the future. Read more detailed information here.