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Posts Tagged ‘Income’

Managing Extra Income

How many of you that do not currently have extra income? Are you able to manage that additional income that can bring benefits? You may have extra income right now. But remember, it’s extra income is not always able to make your life gets better, you know. Can be quite the opposite.

For example, your family income at $ 2 million. The amount is then exhausted to pay all kinds of expenses in your household. If yet be saved, only Rp 250 thousand per month. Then you decide to seek additional income.

After looking here looking there, you decide to seek additional income by teaching. The result, anyway, not bad. A month can be pocketed $ 500 thousand. Sometimes it can even be Rp 750 thousand per month.

The question is whether the additional money, so you can increase the amount of your savings that had been only $ 250 thousand to Rp 750 thousand or even $ 1 million per month? The answer, not necessarily. With the extra income you are also not necessarily be sufficient purposes other family? So how then? Come, see the tips below to manage this additional income.

1. Meet the needs of families who can not yet paid and to pay personal expenses.

Now, what’s your motivation so tired nyari want extra income? Usually, the first one, because you feel that your income is now possible baseball enough to pay family expenses.

Second, even if your family’s expenses can be met, then you can use that income to pay for personal expenses such as your own to buy clothes, shoes, buy books, or whatever your needs. The important household needs are met anyway?

2. Deposit your savings and investments

If you have additional income, should not all be used to pay expenses dong. The existence of extra income it should be an opportunity for you to supplement your regular savings deposit every month.

For example, the regular income you get each month, you can save approximately Rp 250 thousand per month. With the extra income of about Rp 500 thousand per month, try to increase your savings deposit of, say Rp 100 thousand per month.

Avoid allocating all the extra income to boost spending. Your life is not just for today right?

3. Leave for additional capital income is greater.

Try again reserving extra income that you can so that you can earn extra income is greater. For example, you can “money side” of Rp 750 thousand per month. Instead, simply use its $ 500 thousand to pay for expenses that can not be met from your main income. Set aside Rp 100 thousand to increase savings, the remaining USD 150 thousand to raise capital.

For example, if additional revenue is derived from teaching English, you can make 2 additional Card pack of the remaining Rp 150 thousand per month. Or make a brochure. If additional revenue is derived from the trade dress, perhaps Rp 150 thousand per month it can to increase the stock. It’s up to you. Importantly, the venture capital side you can add great.

So ladies and gentlemen, the principle is simple. If you have additional income, not just to pay your expenses, but also to add to your regular savings and increase business capital so that the more days you extra income is increasing.

Saving Extra Income and accumulate wealth

If someone does not spend all additional income or he can manage the additional income he earns, then at the end of the month he will have more money can be saved. With the saving of extra income every month, then that person accumulate wealth. Gradually the number of the person’s wealth will increase so be great. Proverb says: Little by little for long into the hills.

Let’s say for example you are participating in the business pulse very simple to create extra income and you can save 50,000 ripiah every month, then the 3rd month you are able to buy assets in the form of a website to introduce your business into a much larger scale. The fourth month you can increase your sales with the support website and start to earn extra income is greater. Suppose after that you could save 500,000 of additional income you every month, then a year you will memili savings of 6 million dollars. And in ten years your savings will be worth 60 million dollars. But it is true, it still is not enough savings to buy franchinse Mc Donald. hehe …

It’s true, save money extra income it’s already very good even can create rich, as above. But not be able to make the rich. Unless we save money rather than in a regular savings, but saving money on an investment instrument or use the extra income money was to enlarge the business which then could generate additional money even greater. Ok, hopefully we can do it in stages, starting now.

I often hear people say that income variables is impossible for them to implement a financial plan and, therefore, maintain a healthy financial situation. They rely on the argument that with an income variable and uncertain how to receive later this month, it is impossible to finance arranged . But perhaps it is they who most need a financial plan to ensure a stable future.
The income variables are certainly a source of uncertainty. A sales commission will not know for sure how much you charge to make ends meet until you have spent a good part of it. But his life and consumption patterns can not remain “frozen” while he has no idea how to enter your wallet on payday. And the sellers commission are not alone: ??Doctors who are paid per patient treated, lawyers charge by the case won, taxi drivers who depend on passenger traffic, business executives with a productivity bonus, among many others and so on are some examples of people who have same uncertainty about how much will later this month.
However, all these people probably have something in common: they have a standard of living that it can be calculated and it is known in advance. All these people pay utilities every month, fed 30 days a month, spend similar amounts on transport and lead a lifestyle where monthly fees can be calculated and known in advance.

Although our revenues are generally stable or at least, they move within a certain range, many times we face a different scenario: an extraordinary income, not considered or budgeted. This income, which may come from a variety of sources, has the potential to cause great impact on our finances to the extent that we take the right decision of what to do with it.
An extra income is that we have not considered or considered as part of our budget. That is, does not include bonuses that could receive a good performance at work or a social benefit that we know we will receive (such as bonuses, compensation for length of service, etc.). Extraordinary income, for example, a prize, an inheritance or the payment of dividends or distributions of profits of the company I work or who are shareholders. And as such, is a great opportunity to accelerate our achievement of financial targets that we have drawn.
However, this unexpected money is not easy to manage. Therefore, we often wrong with their management decisions: we spend on unnecessary things or wasted taking wrong decisions simply because we consider it “easy money or free.”