Like a healthy body, financial conditions can also be infected with “diseases” that disrupt the work cycle. To find out the presence of “bullies” in your financial condition, you should do a financial check at least once a year using irenas bookkeeping . It is also imperative to check your financial condition when something changes your life. Things like getting married, having children, or work problems will affect the flow of finances. As a result, doing a financial check-up will be the right decision for you to do because it can provide an overview of your financial condition after this happens. One of the things that you must have is emergency savings. By having an emergency fund, you can use it when something bad happens that can make financial conditions fall apart. When the emergency savings ratio has too little value, the ability to seek additional funds when finances are in trouble will be smaller. That way, the risk of bankruptcy is like having debt, no doubt it will occur in financial conditions.
The value that you must save, of course, depends on the financial needs and risks that may occur in family finances. So, you can estimate for yourself how much money should be saved in an emergency savings account, and try to keep it above the predetermined value. In this ratio, you will be able to find out the level of your ability to set aside your income for saving and investment needs. When the value is high enough, it means that finances are in a healthy condition. However, when the value of this ratio is too small, or even absent, you need to be aware of it. Besides meaning that your income is always drained away, you also do not have any savings of wealth or the ability to increase your source of income through investment. So that your financial condition can be said to be “healthy”, try to always set aside around 10% of the total salary earned for savings and investment needs. Although the value is not very large, with one-tenth of the income you can have a good financial condition.
By checking the expense ratio, you can find out what percentage of your salary is being drained to meet your monthly needs. Besides, you can also find out what things make your expenses exceed the limit.