Tips for managing the family finances efficiently. Formula of Happiness.
| Date: December 7, 2008 | Source: Economic @ 21 |
| Category: ECONO-TIPS | |
Votes: 11 Rating: 4.64 / 5) 
Loading ... Can you reach the end of the month with some money saved? Have you managed to survive without using your credit card? Plan your expenses? Income you take control of your home expenses?
If you answered no to most of these issues means that 80% are living a day and reaches the end of the month with some difficulties. For you and for the remaining 20% who want to compare or improve their savings system, is dedicated this post I write.
What I propose is to create our own Happiness Formula from a few simple steps-tips.
To do this, first we must be aware of what our financial constraints, ie, our monthly real income at home, that is, if you live alone, as your income, if the couple live in both. This task while it is easy for most, it may be more complicated for people who have businesses, stocks, dividends, or any other asset that can report back less constant income. If you are an entrepreneur you probably savings culture is more developed, however, you should consider whether you do it right or you could do better through these simple steps that everyone should apply to you. To cover all these scenarios in an easy, we will try to provide the tools necessary keys and a simplified manner.
On the one hand, we perform a task analysis of our income and expenditure and try to classify them according to the groups that we will expose here. With that we'll get a better picture of our economic family.
Second, try to establish small formulas comparisons between these groups to adapt to the current level of our particular economy.
Finally, we give the foundations, guidelines for achieving economic happiness. Eye, not trying to define how to get rich, happiness is not about having more, but less worrying, at least in appearance touches, economic, and this applies equally to millionaires income economies and economies of small income. Consider an economy with income millionaires also have debts worth millions.
We start with the definition of concepts.
a. I NCOME F ijos month (IF): These are easy to calculate, simply enter all income of the household that you feel more or less constant over time. The extra payments, for example, not considered in this section.
- Monthly Payroll.
- Income from monthly deposits.
- Income from property rentals themselves.
- In general, any monthly asset performance is more or less constant (varies less than 15%).
b. I NCOME monthly ariables V (IV): Will those who can not be guaranteed in time, so they generally do not introduce in our supposed equilibrium formula revenue-expenditure. If all of our revenues are variable, then surely we can separate at least we can take for granted the rest we have no guarantees made, at least we'll consider it fixed incomes.
- Sales commissions or other appropriate monthly income.
c. I NCOME E xtras (IE): Let us consider in this section will produce income but not constant on time every month, for example, bonuses, stock dividends, asset sales, returns, finance, ...
- Bonuses.
- Dividends from shares or other assets monthly.
Well, we have classified all our income, so my total income (IT) are as:
IT = IF + IV + IE
Now for the expenses, these much more complex by the large number that are produced, but ultimately equally easy to simplify.
d. ijos F G Astos month (GF): Obviously the costs are kept more or less constant every month, and therefore are easy to predict. Here generally will include the following:
- H ipotecas: The / s fee / s monthly housing / s, business, ...
- A lquileres: The monthly rental charges.
- Personal subtract P: Fees for car purchase, for repairs, etc..
- OOD: Although generally varies, this will consider fixed cost as it occurs every month and the amount is usually more or less the same. We will take the highest monthly spending for the last 3 months for our planning. If you know, take the data from the last month or the next when we have controlled and we will add 15% in anticipation of which varies with another month.
- C ombustible Vehicles: also often varies, but his swing is relatively small (aside increases / decreases in prices), so we will consider fixed costs.
- Share of the residents.
- Receipts for Phone, Internet, ...
and. G Astos P eriódicos not monthly (GP): These are expenses that occur periodically but not every month. In the first months of starting work our formula for happiness is important that we know will occur when each of these expenses in order to have water available to cover them, because once shot the formula, we worry more about them. To calculate monthly will apply the appropriate proportion, for example, if bimonthly preveeremos 50% of the same month, if a year, divide by 12 and that is what we must apply monthly. This group could include:
- Receiving Water (usually quarterly).
- Receipt of Light / Eelectricidad (usually bimonthly).
- Taxes Miscellaneous: Property Tax (IBI), garbage tax, road taxes, ...
- Homeowners Insurance, life insurance, vehicle insurance, ...
- Clothing and footwear.
and. G xtraordinarios Astos E (GE): We will create an item as mattress costs about any type of expenditure that have not controlled or incorporated in the previous sections, which as far as possible we try to be among the former classifying as appropriate. Meanwhile, as are unknown, we apply a 5% of our fixed income.
- Will our contingency margin or cushion.
f. A horro O bjective (AO): We will set the level of savings we seek. It is important that we take it as if it were one more expense, it is the only way to go.
g. O ther G Astos (OG): This section will include all those tangible and intangible costs that are a priori not staple or necessary for survival.
- Leisure.
- Travel.
- Purchases of material things.
We have also classified all our expenses, so my expenses Total (GT) are as:
GT = GP + GF + GE + AO + OG
Unclassified all these categories, a typical housekeeping calculate its R esult (R) as the equivalent of:
R = IT - GT
Which can produce positive or negative balance for each month by not having controlled when and how the costs will occur, so the positive month will spend more thinking that I have had really positive and the negative balance will spend more for not having provided available we will use credit expenses, etc., which further worsens our economy.
Therefore, to something we have classified these costs, to improve our family financial planning and control. Firstly, our results should not be based on R = IT - GT, because even in a year, for example it is more true, if we look in part each month, we must consider the other aspects that can make us even more into debt, by It is therefore very important that we know our limitations and spend according to them.
For this, the M onthly R esult (MRI) more conservative and therefore would bring us greater happiness by eliminating as many potential uncertainties would be:
IF RM = - (GF GE + + GP + + GL AO)
If MR> 0, ie, if the Fixed Income cover all our expenses, we will achieve good stability and therefore happiness regardless of the IV (Income Variables) and IE (Income Extras), so that everything that exceed RM to 0 we would have available to increase AO (Save) or OG (Caprices). At the end of the day, IV and IE could also see it as an extra saving.
If MR <0, we have several options,
1. Control occur when IE (Extra Income) to cover GP (Periodical Payments) and GE (Extra Expenses). If the formula IE incorporate fear a positive result, achieve economic stability but we will closely monitor small changes occurring in amount or time (the time of occurrence).
RM1 = (PI + EI) - (GF GE + + GP + + GL AO)
With a positive result we can choose to increase AO (Save), or try to reduce OG (Caprices) so you can omit the formula IE, which would reach the RM original (optimal happiness).
2. Another option is to lower our claims of savings, although this may not be less than 0, so would,
RM2 = IF - (GF + GP + + GL GE)
This solution also lead us to happiness, because even in the day to day can not save, yes we would do with the income variables (IV) and / or Extras (IE), which would have the intact and we might consider our savings .
3. We could also do a mixture of both, ie
RM3 = (PI + EI) - (GF + GP + + GL GE)
But consider that while RM3 maintain stability is positive but we have eliminated the savings criterion and also depend on the extra income. The truth is that everything RM3 is greater than 0 could incorporate it into savings.
4. Other options to find RM planteables positive or 0 would be:
RM4 = (PI + EI) - (+ GF + GP GE)
We depend on extra income, do not save and do not have to Caprichos. This should be positive, but our happiness will be completely cut off. If we have given negative as RM5 last option is positive, but go into crisis.
RM5 = (IF + IE + IV) - (+ GF + GP GE)
Revenues depend on Extras and Income Variables, do not save and do not have to Caprichos. If this is negative, we must dispose of assets to search again reducing balance basis GF (Fixed Expenses), GP (Periodical Payments) to the extent possible, since GE (Extra expenditure) is a game we do not control , so we can not take it down ever.
In summary, according to the formula can be applied, our level of happiness would be as follows:
RM> 0: High Economic Happiness
RM1> 0: Economic Stability (Happiness Media)
RM2> 0: Economic Stability (Happiness Media)
RM3> 0: Risk of Financial Stability (Happiness Low)
RM4> 0: Risk of Economic Crisis (Happiness Very Low)
RM5> 0: High Risk of Economic Crisis (Happiness Very Low)
RM5 <0: Economic Crisis (Happiness Null)
I hope it was informative and easy to apply to your case. As you see there is no magic formula, just a matter of applying common sense and managed with discretion. I would appreciate any feedback from you.
UPDATE JANUARY 23, 2009
Already have available the Formula of Happiness checklist format of Operations.
December 7th, 2008 at 21:45
[...] The Happiness Formula ... económicawww.economia21.es/2008/12/consejos-para-una-administracion-d ... for a few seconds DaMarChis [...]
January 23, 2009 at 19:04
[...] Formula of Happiness checklist format of Operations Date: January 23, 2009 Source: Economic Rate this post @ 21 Loading ... A little over a month, we published an article where we gave some simple tips for improve your control of revenue expenditure and to measure the health of your family finances. This article was to Tips for managing the family finances efficiently. Formula .... [...]