performing the valuation of your income

In the first article has sgucci sgucci convey how
addressing the conditions so that we can reach the phase I of the health
financial. In this article we discuss some of the questions all
associated with our first arikel particularly regarding debt
it is a 'creature' that can serve as a 'honey
and poison ', the following is his presentation:

1. For those who have the spending 'only' 10% s / d 30% of
Income limits debt repayments by 30% to the relative,
a straight answer from us that the maximum debt limit of 30% of
Your income is absolute despite spending 'only' 10%
s / d 30%. Based on an empirical survey expressed an institution keuanganpun
member will not credit to a debtor if the number of installments
exceeding 30% per month up to 40% of total income (unless there
engineering from the debtor and creditor).

2. For those who are at point 'd' then please follow the advice you
following the permanent search for solutions to resolve debt
medium and long term, while short-term you should ask
aid grants not loans. Our next step is
Funneling to the article earlier.

Similarly if you are already heading for the corridor on the path toward
A healthy debt so now is the time you do a calculation would
needs (not wants) of your other financial. We can state
that you need to increase your income but before it reached
then there is an easier thing you have to do that is pressing expenditure,
why more easily suppress spending?, because expenditure
done is largely relies heavily on your self
itself, while improving income most highly
dependent on others outside your party.

Effective way is to begin to keep records of all
monthly expenditure (excluding debt repayments), do a review of five
(Five), the largest monthly expenditure you, do the efficiency of
your spending so that expenditure could be reduced scale. After
you do the recording and the efficiency of expenditure, the next step
make record all debt payments (mortgage + principal) per
month and then do the assessment (valuation) of your income
whether it reaches the right size?

As information please do the entire record in this column before
review and after a review carried out.

In performing the valuation of your income, there are its stages:
1.Tahapan bad (Poor Income Valuation);
2.Tahapan fair (Fair Income Valuation);
3.Tahapan ideal (Ideal Income Valuation).

In order to simplify, the following explanation:

1.Tahapan bad (Poor Income Valuation): is the stage where
total state expenditures greater than income aka 'Big pins
from the Pillar ', in this condition or cash flows become negative deficit
and weighted monthly installments payable over 50% of total revenue.
See the following examples:

Table 1:
Description per month The amount of weight vs. Revenue
Net income USD 18.75 million 100%
Expenditure (excluding debt repayments) USD 17.5 million 93.33%
Installment debt USD 9.825 million 52.40%
Total expenditure = 2 +3 USD 27.325 million 145.73%
Surplus (deficit) spending USD (8.575 million) -45.73%
Surplus (deficit) installment debts USD (4.2 million) -22.40%
In the case above shows that expenditure (deficit) USD 8.575 million.

In this case most likely to cover the shortage is done
by adding the debt through credit cards. The way it is
dangerous and can not be justified. This condition should be
requested financial assistance from family or close relationship.

We strongly recommend that can conduct a review of its business activities
case above, look for a great potential to increase revenue.

2. Stages of the fair (Fair Income Valuation): back on the case above
individual or family shall increase revenue,
the problem is how a reasonable income for the case above?,
The following is the formulation of Fair Income Valuation:

Total spending in a deficit condition / 90%

Why should 90% divider?, This was due to reach the zone
financial freedom or you are richer then obliged to set aside
income of at least 10% and placed on the right investment (to be
we discuss in the next article).

So the above cases the income to Rp 30,361,111. Or in table
follows:
Table 2:
The Fair Tax Valuation vs. Income Weights
Net revenue USD 30,361,111 100% Fair
Funds invested (required) USD 3,036,111 10%
Expenditure (excluding debt repayments) 17.5 million 57.64% RP
Installment debt USD 9.825 million 32.36%
Total expenditures USD 30,361,111 100%
Surplus (deficit) spending - 0
Surplus (deficit debt repayments) USD (716 667) -2.36%

From the table shows that the deficit is zero and reduced debt repayments
weights of income from 52.40% to 32.35%.

3. Stages of an ideal (Ideal Income Valuation): at this stage
individual / family is already at a healthy financial corridor,
ie according to the table:

Table 3:
Ideal Income Valuation (day) The amount of weight vs.
Income
USD 50.25 million in net income 100% ideal
Funds invested (required) USD 5.025 million 10%
Pengeluarn (excluding mortgage debt) USD $ 17.5 million 34.83%
Installment debt USD 9.825 million 19.55%
Total Expenditure USD 32.35 million 64.38%
Surplus (deficit) spending USD 17.9 million 35.62%
Surplus (deficit) installment debts of Rp 5.25 million 10.45%
Funds invested USD 17.9 million 35.625
The Ideal Income Valuation formulas are:

Installment debt perbulan/30% + Expenditures (excluding debt repayments)
Seen that the weight of mortgage debt has reached <30%, ie 19.55%
and a surplus of 35.62%.

The next question is how do I get additional
of such income?, this can be achieved by moving jobs or
conduct additional business. It's not an easy thing but
at least you already know the limits of healthy earnings in accordance
with your condition.
As information of income and installment debt is here
is can be a combination of income and installment debt (husband &
wife).

But realistically the contrary we must be prepared and shall perform
'Tightening extra' to the expenditure if the projections to obtain
additional income is not visible.

The following table is an example of a family who have reviewed the
'Tightening extra' earnings projections due to the expenditure
not appear additional (same case as above):

Table 4:
Description (Total per Month) The amount (Prev review) vs Weight
Revenue (Prev Review) The magnitude (stlh review) vs Weight
Revenue (stlh review)
Net Income 100% to Rp 18.75 million USD 18.75 million 100%
Expenditure (excluding debt repayments) USD 17.5 million 93.33% USD
8.925 million 47.60%
Installment Debt USD 9.825 million USD 9.825 million 52.40% 52.40%
Total Expenditure 145.73% RP 27.325 million USD 18.75 million 100%
Surplus (deficit) spending (USD 8.575 million) -45.73% - 0%
Surplus (deficit) debt (USD 4.2 million). -22.40% (USD 4.2 million) -
22.40%

Consider spending excluding debt repayments required and must be suppressed
so that the total expenditure does not become a deficit. It is again this
is heavy and not easy but it can be done with
enthusiasm and high extra discipline.

Now we return to the families who have managed to get
additional income, which lies within the range of improvement
Fair to Ideal income is sufficient to create wealth
you grow, with a record of at least 10% of your income
per month placed in an investment rather than speculation.