Finances in a family or individual greatly affect the choice and well-being of a person’s life. It is not uncommon for bad finances to make a person feel psychologically worse. The first reason may be due to a lack of access to information. It is also possible that a lack of financial knowledge and effective ways to manage it makes a person fail. The need for irenas bookkeeping financial consultants is very high when you are experiencing bad financial conditions and this condition does not improve. This condition is usually caused by unconscious financial management errors. A healthy financial condition means that expenditure, income, debt, and investment are balanced. If there is swelling in any of these things, it means that your finances are not healthy.
The first thing that can lead to poor financial conditions is expenses that exceed income. The expenses here can be in the form of financing daily needs, family, or installment payments. If you feel that other people at the same salary level are still able to invest and you are not, then you are in bad financial arrangements. When your income is often used up, you must check the expense ratio immediately. So that you can always fulfill other needs, such as saving and investing, try to keep the expense ratio below 70%. That way, the financial condition will be healthier and the ability to increase the ratio of emergency savings and investment will be better. When you have a high enough salary but find it difficult to set it aside, it could be that the problem lies in the debit and credit ratio that is too high. By choosing to go into debt or credit, expenses will be greater than what should be paid.
Interest expenses and penalties for late payments will make expenses soar. Therefore, a lot of your income will be eroded to pay off bills from debt or credit. Maintaining financial conditions to stay in control is tricky.