What percentage of ones income should be expensed as domestic expenditure?
March 26th, 2007 | Uncategorized |
I guess this is the most widely sought out answer by non finance professionals, scholars and finance professionals. It’s therefore not surprising that large sums of monies are spent today in advertising targeted towards impulse buyers.
Getting your finances inorder is not a matter of mention alone but takes proper planning and commitement. Early this year we purposed to put our financial matters right. We made a commitement put it in writing signed off by both of us. As the first quarter of the year is coming to a close, the results are really quiet shocking and reveal that the task ahead of as is very evident. The economics today especially as regards disposable incomes is evidently becoming a challenge. With every increase in incomes comes a proportionally high demand of related needs and wants. One reader responding to my previous letter “Work hard and learn to Save” raised this question, what percentages should be expensed on each expense item? We all ask this question everyday of our lifes. The fact is there is no definite answer as this varies widely from individual to individual considering income and expense patterns. Well, I read and thought through this question and came up with my own percentages ( This is not gospel truth). Please visit http://smallwins.blog.com about the same. A spreadsheet about the same is posted on the link to guide interested persons about my findings. My findings were both surprising and discouraging. The numbers on avoidable expenses previously incurred where disheartening. Well atleast I had my financials in perspective. The real question was how do I work towards improving my current position? One guru once lamented that a “house” without a plan and/or budget is like a blind man without a walking stick. Plans are not meant for only corporates but come in handy also for household receipts and disbursements. Well, I am not a guru myself. I am still struggling in this department irrespective of whether I hold specialized knowledge in financial management. My goal this year as I review my financials of this first quarter is to meet the goals I set in my new years resolution. The question you should probably be asking yourself is how close are you to meeting your new years resolution? Arthur Kaliisahttp://smallwins.blog.com
Getting your finances inorder is not a matter of mention alone but takes proper planning and commitement. Early this year we purposed to put our financial matters right. We made a commitement put it in writing signed off by both of us. As the first quarter of the year is coming to a close, the results are really quiet shocking and reveal that the task ahead of as is very evident. The economics today especially as regards disposable incomes is evidently becoming a challenge. With every increase in incomes comes a proportionally high demand of related needs and wants. One reader responding to my previous letter “Work hard and learn to Save” raised this question, what percentages should be expensed on each expense item? We all ask this question everyday of our lifes. The fact is there is no definite answer as this varies widely from individual to individual considering income and expense patterns. Well, I read and thought through this question and came up with my own percentages ( This is not gospel truth). Please visit http://smallwins.blog.com about the same. A spreadsheet about the same is posted on the link to guide interested persons about my findings. My findings were both surprising and discouraging. The numbers on avoidable expenses previously incurred where disheartening. Well atleast I had my financials in perspective. The real question was how do I work towards improving my current position? One guru once lamented that a “house” without a plan and/or budget is like a blind man without a walking stick. Plans are not meant for only corporates but come in handy also for household receipts and disbursements. Well, I am not a guru myself. I am still struggling in this department irrespective of whether I hold specialized knowledge in financial management. My goal this year as I review my financials of this first quarter is to meet the goals I set in my new years resolution. The question you should probably be asking yourself is how close are you to meeting your new years resolution? Arthur Kaliisahttp://smallwins.blog.com
