Serieus, Ratio Budget Method kicks!

Persoonlijke uitgaven Cirkeldiagram

Ben je boos in budgettricks? Stop, denk na en rebound!

Ratio Budget Method

"Op dezelfde manier werken met de budgetmethode als werken op een 8-5-baan zonder te weten waar het geld naartoe ging. "  -  De verontwaardiging van de arbeidersklasse

Wat heb ik nodig om mijn financiële droogte een halt toe te roepen? Dit is een legendarisch raadsel, niet alleen in de thuiswereld, maar ook in de zakenkamer. Verstijfd voelen met een stressvolle situatie dat herijking in mijn maandbudget een terugverende as oplevert voor het huishoudbudget. Een versleten geldbeheerstructuur moet opnieuw worden beoordeeld. Ik moet weten waardoor ik terugkom naar oude problemen. Probes objectieve analyse, onderzoekt bestedingsverfijning en andere "damage control" prikstokken voor systeem. Catch-22 afsnijden - geen-winstsituatie - is een antwoord op de methode van de ratiobudget: in plaats van vaste toewijzing op elk regelitem, bepaalt u in de hiërarchieclassificerende positie die leidt tot snelle plekreconstructie in de benodigde gebieden (op basis van levensstijl). Dit zijn de gesneden brokken (met gecombineerde maandelijkse nettowinst).

Figure 1- Monthly Expenditure Chart of average househod

64% of FIXED EXPEND identifies as the “brutal assault in wallet "

Prioritisation-based approach shows arrangement to arrive at my monthly budget equation. Here is what I called “brutal assault" in my wallet that no matter what regulator applies each elemental function is our key subsistence.

• •Home mortgage — There is no place like home. Though, if I am bombarded with piled-up monthly amortization dues, we’ll be homeless soon. I am screwed up! It’s time to rent out my condo unit and live with parent’s big house to get a financial rebounding.
• •Fixed Payable — Under this category are the social securities premium, fund membership, and other monthly deductibles from payslip.
• •Electric bill — let’s start from Leo de Caprio’s advocacy by using solar panel for roof! Jeez, how many panels do I need?
• •Kid’s allowance — even with one kid around, the volatile pricing makes it difficult to control the expenses. The bonding time with classmates is an added fuel to fast spending plus the projects and impromptu events. The whole situation controls the outlay trajectory.
• •Condo Assoc. Dues — inclusive of our daily water consumption plus 12% VAT (value added tax).
• •Groceries — a never miss routine, or my family en route to coup! I just limit our grocery items mostly in kid’s energy food consumption, household utilisations, and personal hygiene items needed.
• •Sky-cable/prepaid load/Internet subscription — shucks! Why do I still have cable for movie watching when wifi can cover it all?

However, a Monthly Expenditures chart figure clearly shows fixed payable played significant result on fixed expenditures upsurge, to have a serious control. A sharp loan cutback of 13% to have an achievable 55% hard-goal (from 64%).

25% of VARIABLE EXPEND is the unpredictable stress

Personally speaking, this budgeting issue is giving me a nosebleed. The 25% ratio in this category will be based on remains of fixed expenditures and long-term investment retention that can be controlled with thrust booster self-discipline. Becoming a hard-liner is to re-arrange from pivotal downward to trivial ranking such below:

• •Education Payable — This allocation depends on the considerable factors such as learning level of the kid, payment mode, type of school with the different extra-curricular program which affixes unnecessary cost.
• •House (Fire) insurance plan — It is a customary plan for us to apply security measures in our investment such housing.
• •Car maintenance — frequent visits to a repair shop is a spot sign of an asset turning into a liability plus monthly parking cost– loss control plan is to trade-in or sell.
• •Eating-out/shopping — The girl’s cheat day is a shopping binge combined with a stroke of [Filipino culture] by eating out in the fast-food or trendy restobar.

6% Retention of LONG-TERM INVESTMENT GOAL

This is what I call, “ without it, is dying without a fight! A long-term financial goal; a strategy to spin around my savings into a better position. Plans of increase by 4% in retention (to reach favorable 10%) is attainable with a 15% level-up income target.

• •3% — fixed property investment (e.g. parcel land, apartment, condo units, etc.)
• •3% -liquid/securities investment (e.g. foreign currency exchange, insurance policies)*

*This is a diverse (insurance) product structure commune with premium loan set, basically allowable with 80% of the Total Sum Insurance (TSI). Another classic example of an asset recoup is the latest asset securitisation in China market — a new investment model.

A trio of beneficiaries.

Mortgage and asset-backed securities remain at an early stage of development in China, but the market has considerable potential for future growth. These structured products enable developers and banks to transform outstanding loans into trading notes. Banks no longer have to keep assets or mortgages on their balance sheets for the duration of the loans, and they can sell the stream of interest and capital payments to investors, freeing up capital for other investing activities — such as loans to developers. From an owner’s perspective, the single biggest attraction of structured products is their ability to unlock asset values while allowing the owners to retain part of the asset’s future growth potential. When assets are securitized in China, future cash flows and a portion of the asset appreciation are — for a specified time period — often bundled into the financial product. This allows asset owners to unlock the asset value and to use the proceeds to pay off debt or to seek out other investment opportunities. [1]

5% of EXIGENCY RESERVE

5% Exigency reserve is a resistance platform vulnerability. The perilous atmosphere can control with health management preparation. An unpredictable situation strikes from different directions. A smart action can be determined with crisis management application, the only way to combat unpredictability. Now, let’s have the abracadabra reservation:

• •5% — public shared (communal) investments: bank savings, enlisted cooperative, renegade money lending

Formula:

Exigency Reserve = 5%

Retention — 11%

Investment Goal -6%

Illustration:

R- I.G = Exigency Reserve

11% — 6% = 5%

Therefore, sometimes it pays off to be a risk-taker than being a sitting duck.

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[1] David Chiu, The Investor, JLL, “Asset Securitisation in China: the latest and coolest", April 24, 2017