No director salary is $ 85 million, but its debt 60 percent of his salary. But there are employees whose salary is not that big, but it has an asset whose value continues to increase. How should we manage the payroll? These are tips to manage payroll submitted Eko Endarto, a financial planner.
According to Eko, someone called the rich, not determined by the amount of money available each month, but of how one manages his salary.
There are four points to consider how to manage the salary properly. Namely, consumption, debt, investment, and protection.
“There are people whose salary is high, but every month always exhausted because he was too consumptive. How can a director paid Rp 85 million, even his money runs out to pay debts which amount to 60 percent of his salary? Because expenditures there are 76 kinds. The director spent his salary to join Gym, just play golf, his wife often to spas and more, “said Eko Endarto.
According to Eko, there are four things to consider to be able to manage the salary properly. Namely, consumption, debt, investment, and protection.
make it a priority
In terms of consumption, said Eko, we must make it a priority, ranging from socio-religious, debt repayment, investment, and the necessities of life. Of these four things, which are not restricted are the necessities of life. Because it was spending on the necessities of life must be done wisely.
Spending boundless, but limited income. For that we should be able to make it reasonable to allocate appropriately.
Spending on social and religious least 2.5 percent, the payment of debt installments up to 30 percent, and to invest at least 20 percent. “Prioritizing the needs rather than desires,” remember Eko.
Problem debt, Eko warned that the debt has always been a problem. Someone who has a debt actually make assets bought from the results of the debt into additional costs. Someone who has a credit card, you should pay in full before the due date because if you only pay the minimum amount, meaning that the amount to be repaid to grow and more and more time.
Suppose someone owes $ 1 million, then pay a minimum 10 percent each month, meaning that they are new to repay the debt for 29 months. “This problem is sometimes underestimated. If left unchecked for years, will be a big problem. In fact, a person must first leave the company and receive severance pay, just to pay the debt of severance,” said Eko.
Thus, Eko said, the actual debt-reducing wealth. Debt is only an additional cost, let alone the consumer assets. “And right over our assets will be lost, if we can not pay the debt. Someone buying a car, which gained even debt collectors, and even lost their assets.
However, Eko said, we may be owed if the expenditure was an urgent requirement. “Suppose a family member is sick, no savings, no replacement,” he said.
Eko also add, we may owe as long as get a productive asset. If he did not get in the form of cash, but its good value. “Berutanglah for assets whose value continues to rise, such as buying property or gold,” he said.
Eko also explained about the importance of investing for future financial guarantee. If only to save money, the number had grown and increased in value, but the value is still below inflation. Meanwhile, if invested, the number had grown, its value is also increased, but the value is higher than inflation.
Preparing financial future after retirement is very important. During this time retired only prepare from savings, severance office, and Social Security.
So what is the key investment? First, have a purpose. Second, adjust with the risk profile. Third, choose the right products, this is sometimes not addressed properly.
To protect yourself and your family, if you’ve been following the insurance? Life insurance should at least be able to replace the 100 in monthly expenses.
But for health insurance if health care costs borne by the company, whether they need to join a health insurance? “Take required, not offered,” remember Eko.
Then follow the insurance also for property loss. But if the house is located in the mountains, for what insured home about flooding?