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To measure how healthy personal finances or family, you can do a financial check-up. Financial check-up process is not difficult and can be done by everyone. How, you financial measure based on the ratio or standards that have been set. Finance categorized as healthy when it is appropriate or close to standards specified ratio. In general, there are four ratios used to carry out a financial check-up:
1. Consumer debt ratio
(Total Debt Consumer): (Total Income Monthly)
What is meant by consumer debt is debt used for consumptive purposes such arrears credit card, installment of electronic goods, holiday packages installment, including the Loan and other credit.
Monthly income is regular income (salary) or the average income you receive each month. If there are occasional income or other bonuses, it is not counted as monthly income.
healthy standard for this ratio is 0 percent. That is, after you have a debt to buy consumer goods. In practice, it is often difficult to implementation. But if the discipline and wanted to postpone the desire to shop with a credit card or owe, you will maintain financial health.
Tips: Try to buy consumer goods with cash, it was only when strictly necessary. If you do not have enough money then do not buy.
2. Ratio Installment
(Monthly Instalment Total) (Total Fixed Income Monthly) X 100 percent
Total monthly installment in this regard include installment house, vehicle payments, mortgage apartment, installment land, and others. This ratio is a maximum standard of 30 percent.
If your mortgage rate is less than 30 percent, you are relatively healthy finances. Thus you can use the money for other purposes such as investments to ensure that assets could be more.
3. Ratio Emergency Fund
(Total Assets Liquid) (Total Cost of Fixed Monthly)
What is meant by liquid assets are assets that can be cashed in quickly when needed. Included in this is cash, savings, checks, deposits, current accounts, and types of investments such as money market mutual funds and others.
While the total monthly fixed costs include all expenses that are fixed for example electricity water telephone bills, installment routine, consumption costs, school fees, rent and other fixed costs are certainly regular pay.
This ratio is a minimum of six for you are still single and 12 for those who have a family. The standard ratio of six emergency fund, it means you have liquid assets to finance your life for six months. Even in an emergency and you do not earn even (eg fired of job, illness, etc.), you can still survive for six months.
Thus, the greater this ratio the better. When it reaches the minimum ratio, should rest not only saved, but invested so much of your assets grow.
4. Cost To Income Ratio
(Total Cost of Fixed Monthly: Total Fixed Income Monthly)
This ratio is easily demonstrated lifestyle even one's financial management model. The standard for this ratio is below one. That is the total monthly cost should be less than the monthly income.
If the ratio is equal to one, meaning that the entire income exhausted to make a living. And you do not have money left for savings.
If this ratio is greater than one, your financial condition is not healthy. Your monthly income can not cover the cost of living. In this case only two things that can be done is: downsize to reduce expenses, and / or trying to increase revenue.
After conducting financial checks and determine the condition of financial health, you can plan how what could be waged in order to recover the financial condition. And of course you can continue to further improve the quality of your finances is becoming increasingly better
source: economy.okzone.com
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