Eight Family Financial Priorities

family financial planning...IN daily life, you may be confused by the various financial needs such as paying bills, paying off debt, pay for insurance, to set aside money for savings. So, what needs to be prioritized?

See explanation of financial columnist Liz Pulliam Weston of MSN Money following, to help you manage your finances better:

1. Paying the bills
Your ability to manage a variety of other financial priorities will be greatly enhanced when you are able to handle basic household expenses. According to financial expert Elizabeth Warren, you are advised to limit expenditures'' shall'' to 50 percent of total income minus taxes.

There is also the mandatory spending, he said, including housing, utilities, transportation, food, insurance, child care and minimum loan payments. Meanwhile, 30 percent of revenue to be allocated to meet the'' desire,'' such as new clothes, entertainment, and leisure. While the remaining 20 percent for savings and debt repayment.

If your mandatory expenses ballooned from 50 percent share of after-tax income, you can control it by cutting spending on food and utilities. If not, you have to make further adjustments to find a cheaper place to stay or get rid of a luxury car from the garage.

That is not recommended is to cut your insurance coverage, which is a protection for you if disaster, accident, or illness.

2. Save
Set aside a few dollars for savings in a bank savings account can save you from the risk of late payment of bills. Having saved at least 5 million in savings, allowing you to pay for minor emergencies without having to charge the credit card.

3. Retirement savings
How much money should you save for retirement? Liz Pulliam Weston of MSN Money recommends that you set aside 10 percent for basic savings, 15 percent for comfort, or 20 percent for a breakout.

If you start saving early retirement at the age of 30, set aside 10 percent of revenue should be able to cover basic needs in retirement. While setting aside 15 percent of revenue will give you a more comfortable life. If you set aside 20 percent of revenue, you should be able to enjoy luxuries such as early retirement or travel extensively.

4. Pay off debt
It's time to tackle your credit card bills and other dangerous debt. The best way to do this is to pay the debt with the highest interest as a top priority, while paying the minimum payment of other debts.

But, you also can pay off the smallest debt first, to provide a psychological boost to pay off other debts.

5. Emergency Fund
Savings can be sold quickly if you lose your job at any time. Therefore, make sure to set aside a fund of at least six times the monthly income or expenses shall as anticipatory action.

6. Long-term disability insurance
Someone earning power is greatest asset. Meanwhile, the chances of a person for disability due to an accident or injury while working is higher than the risk of death in the same period.

The easiest way to get insurance protection is through your employer. If the company does not offer such protection, find insurance that provides protection against the risk of accidents and defects.

7. Saving for college
If you already have a retirement fund savings, pay off debts and have an emergency savings fund, now is the time to think about the future of your baby. family financial planning, The easiest way to do this is to open a savings or education insurance education, which can be withdrawn automatically from your savings account each month.

8. Experience spectacular
Once you successfully manage any financial priorities above, it's time to set aside money for something fun like a special trip, a family reunion, or a sabbatical.
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