Peluang Usahawan

Peluang Usahawan

Keutamaan Budget Anda


How to Prioritise Your Budget
Your budget is pulling you into a million different directions: repair your car, save for retirement, pay off your credit cards, buy a new set of work-related clothes and save for your children's college education. So how can you balance these disparate savings goals, all of which require different amounts of cash and have different deadlines?


1.    Retirement Comes First

There is absolutely NO goal that's more important than saving for your retirement. Most people ignore retirement for two reasons one, it seems far away, and two, they assume that they can just keep working into their 70s. Unfortunately, not all retirements are voluntary. Job layoffs, age discrimination against older workers, family care obligations and health issues can force people into an early retirement. Don't think of "retirement" as a choice; think of it as something that ideally is a choice but might be the result of forced unemployment.


2.    Pay off Credit Cards Debts

Not all debt is bad. There might be strategic reasons why you'd choose to only make the minimum payments on a low-interest, housing loans or student loan. But if you're holding credit-card debt, pay it down even if your credit cards are currently offering a "teaser" zero-percent interest rate. It's only a matter of time before that teaser rate skyrockets into the double-digits.


3.    Start an Emergency Fund

This tip closely relates to the one above it: avoid future credit card debt by setting up an emergency fund. This fund will help you cover unexpected expenses like a major medical bill or costs relating to a job loss. Experts disagree about how large your emergency fund should be. Some say it should be as small as RM1,000. Others say you should save 6 months of living expenses. The most important thing, though, is that you set aside something.


4.    Keep Funds for Expected, Intermittent Costs

You know that someday, your roof will leak. You'll need to call a plumber. You'll need new tires. These are not "emergencies" or "unexpected expenses." These are inevitable expenses. Set aside a fund for these inevitable home and auto repairs that is separate from your emergency fund. This is simply a maintenance fund for predictable, inevitable expenses that happen at random intervals.



5.    Make a List of Remaining Goals

Brainstorm a list of every remaining goal you'd like to save for: a 5-day trip locally, a stainless-steel-and-granite kitchen remodel, or getting a second brand-new car. At this stage, don't pause to wonder how you'll pay for this. Just brainstorm the list. Then, write the target date for each of these goals. Don't worry about whether it's "realistic",you're still brainstorming.



6.    Tally the Costs

Next, write the target sums next to each goal. Your vacation will cost RM3,000. A kitchen remodel will cost RM15,000. A second, brand-new car will cost RM45,000.

7.    Divide


Divide the cost of each goal by its deadline. If you want a RM 3,000 trip to Redang Island within one year, for instance, you'll need to save RM 250 per month. If you want a RM 15,000 kitchen remodel in two years (24 months), you'll need to save RM 625 per month. At this point, you're probably noticing that you can't meet all your goals by their intended deadline especially after you factor for retirement, paying off debts and building an emergency fund, which are your top three priorities.




ZULAIKHA (Muqmeen Group)
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