Humans may plan, but God is also the one who decides. Yes, wise words like that are often heard to deal with events that cannot be controlled by human reason and ability.
The same goes for your financial side. Sometimes, you have done careful planning to meet all the needs of your life and that of your family. However, there could be a sudden event that makes you forced to spend excessive costs and eventually your savings will run out.
This problem can actually be solved by doing the right planning. So, how do you manage the expenditure of funds for the unexpected?
Want to know the explanation? Come on, read all the instructions for managing these personal funds in the following review.
1. Set Priorities in Your Life
One of the plans that you can do is to set priorities. That is, you must be able to determine which things include primary needs, secondary needs, and tertiary needs.
Primary needs are the same as basic needs. This means that these needs must be met so that your life and that of your family can run well.
Meanwhile, secondary and tertiary needs are not primary needs. If you can’t fulfill it, it won’t really interfere with your survival.
2. Prepare a Reserve Fund
Examples of unexpected expenses include the cost of a child’s school education, a family member is sick, an accident occurs, and so on. To overcome this, unexpected costs are needed in the budget. The trick is to set up a reserve fund in a household. That way, you can still handle any unexpected events.
3. Don’t Fulfill All Unexpected Needs
In fact, there is no need to meet all the unexpected needs. For example, after graduating from high school, your child’s friend invites you to go on a trip to Bali. In this case, you need to adjust the savings budget you have whether you can afford your child’s travel or not. Instead, you can save the money for the trip to finance your child’s education to college level.
4. Pay All Bills
After payday, you should immediately pay all the bills that you bear. If there is a certain credit, you can make installment payments. That way, the money you have can still be controlled.
5. Meet the Needs of Life in Moderately
Try to meet the needs of your life in moderation and do not need to live excessively. Why is that? This is because your life is not always happy and have a lot of money. The wheel of fate may spin which can change your life in a difficult and deprived position.
If you are smart in controlling your finances, then you will remain calm and be able to make ends meet, even though you are in economic difficulty.
6. Set aside income for savings
Another thing you should pay attention to is be smart in saving. Set aside some of your income for your future savings. If you don’t have a home, then you can save to buy housing. This also applies to other things that you can’t achieve yet.
7. Choose the Right Insurance
If you have a large income, you may try to join insurance programs, such as health, vehicles, education, and others. The benefits of taking insurance cannot be felt directly. However, one day you can use insurance funds for certain purposes.
Those are some ways you can do to control unexpected expenses. Come on, try this method well so that your life and that of your family can still be comfortable and all the necessities of life are fulfilled. For more information, you can read here.