If your money is limited, you may see the possibility of budget cuts in the hope of improving the purchasing power to cover basic needs. Before starting, you need to ensure that you are able to cut the amount spent on a particular item. Here are five items should not be deducted from your budget.
1. Do not Cut Health Insurance Costs
Pretty tempting to live without health insurance, especially if you are faced with high premiums every month. You may be tempted to cut health insurance entirely so that you can have two or three million a month extra money. Medical costs can lead to bankruptcy. Even if you are in good health and all of a sudden appendicitis can overload your Rp 300 million. Of course this varies from one place to another. If you want to lower the cost of health care, consider high-cost insurance plans shift to a health savings account. This will significantly decrease the amount to be paid each month but still protect you from medical bankruptcy that may occur.
2. Do not Cut Budget Savings or Pension Fund
Cutting the budget savings should be the last thing done. Certainly not make sense to save money when you are in a state of "red" every month but you have to make sure that you have cut everything else from the budget first. Make it a goal to save at least five to ten per cent every month. By saving money each month, you will actually be ahead financially. Some experts say you should save enough money each month which is only slightly your monthly financial burden.
3. Do not Stop the Debt Repayment Plan
It is important that you do not get in arrears. During tough economic times, you may resent how much spending debt payments every month. The sooner you can stop paying the debt, the more money will be saved. Before reducing make this payment, you have to reduce everything else out of your budget, including eating out, entertainment and outdoor categories. You have to cut everything back to the bare minimum.
4. Do not Cut Cost Car Insurance or Property
Not wise for driving without car insurance and it is a good way to protect assets if you have a traffic accident. Besides insurance is reasonably priced and can help replace these items if they are stolen. Property insurance protects one of your biggest investments. It is ridiculous to consider not having insurance. If your insurance costs seem high, you may want to look for information around.
5. Not Really Cut Costs to Entertainment
Everyone needs a little spending money. It helps to reduce stress and can prevent you from wasting consistent. The key is to determine the amount of money you really can afford and still meet monthly obligations. Maybe you only have fifty or a hundred thousand to spend in a month. You can find many ways to spend this money but it should be with something fun.
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