Record your Income and Expenses

Each gets regular income such as monthly salary or bonus, make it a habit to arrange budget planning. Most likely is to draw up a monthly budget plan and put it in the form of a cash flow statement. The cash flow statement consists of two main parts. First, the income column (regular salary, bonus, other income). Second, the expenditure column. Fill in the expenditure column for some types, ie routine spending expenditures (monthly expenses, electricity costs, meals, transportation), expenses for debt repayments, then expenses for savings or investments.

You can use the 40-30-30 formula. That is, 40 percent of the income is for routine expenses, 30 percent for repayments and 30 percent of revenues for savings or investment needs. After you have diligently recorded the cash outflow and budgeting plan, you will get a better picture of your current financial condition. Well, whether your financial condition is healthy enough? If you need any help to plan your finance, then you can visit http://www.rocketwealth.net.