Do You Know How To Manage Personal Finance?

In a financial budget, there are several components that you must understand. The first is the components of income, and the second is the components of expenditure. In addition, you can also hire professionals to help you manage your finance, and we recommend you hire the best Xero Bookkeeper in Parramatta.

You can read about income and expenditure in these explanation points:

Find out which components are monthly income

The components of this income are the sources of your income within a certain period after-tax deduction. If you already have a family, it means your monthly income includes the income of your wife/husband. There are two types of monthly income components, namely:

Minimum Income Fixed

This income includes a monthly salary that is routinely earned each month, after-tax deduction of course. The minimum profits from the business that you run also go into this component.

Income Not Permanent

As the name implies, this income is not the same amount each month alias varies up and down. Components of this non-permanent income come from sources such as bonuses, sales commissions, business profits, side jobs, investment returns, and so forth.

Know the components that are monthly expenses

Contrary to income, monthly expenditure components are items that must be met with your income. There are two types of expenditure, namely primary needs, and secondary needs.

Basically, you will be able to understand which ones enter primary needs and which ones enter secondary needs if you can distinguish between needs and wants.

Monthly primary expenditure expenditure

This includes the components of expenditure of basic needs (primary) which are required to be fulfilled because it really is “needs”, not “wants”. Some things that are included in this primary need include:

– Daily food and drink expenses. Bukan cuma biaya beli makan di luar untuk yang masih single, tapi juga biaya belanja bahan-bahan masakan, gas, air mineral galon, dan lain sebagainya yang termasuk konsumsi harian.

– Household expenses. This includes boarding fees, house rentals, rented houses, electricity payments, water subscription fees, laundry, environmental cleaning costs, sanitation needs, and others.

– Transportation expenses.

– Communication expenses.

– Education expenses.

– Mandatory health insurance expenditure.

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