Budget your monthly expenses

An important part of financial planning is to have a budget for your monthly expenses. Find out the following facts:

1. What is your monthly earnings?
2. What are your monthly expenses for:
* mortgage loan
* tax
* utilities
* food
* telephone
* transport
* insurance
3. Are you able to reduce any of the expenses, i.e. be more frugal?
4. Do not spend more than 3% on life and medical insurance for your whole family
5. What is the balance of your earnings?
6. Set aside 10% to 15% as savings for the future
7. Use the balance for entertainment, holiday, car, splurging
8. If you have year end bonus, you can add 1/12th of it to your monthly income
9. Most important! Avoid rollover on credit card. The interest charge is too high.

If you have already committed more than 3% on insurance, you should not add more to it. Keep what you have. Invest most of your future savings in a low cost investment fund.

Read this FAQ
http://www.tankinlian.com/faq/savings.html