Posts Tagged ‘shopping’

Understanding the “Must Have” and “Nice to Have”

There is no single person who wanted greater financial condition than revenue expenditure. However, no single person can ensure that its financial condition would be fine. In fact, somebody who experienced an increase in income each year its financial condition will not necessarily be better. Why? Because the amount of increase in spending could be greater than the increase in revenue. Therefore, the key word to stabilize financial conditions, or even make it better, is the expenditure or cost.

Cost, can essentially be divided into two, namely the cost to finance something that is a must have and the costs that are nice to have. In reality, many people find it difficult to distinguish both these costs. For example, to meet the primary needs, like clothing, food, and shelter. At first glance, the fulfillment of these needs are all costs that are a must have. Though not the case.

Clothing, for example, that each person must cover his body with clothing is a necessity. However, what brand of clothing that will be purchased and at what price is not demand but desire, and it pertained nice to have. In summary, controlling the cost of actual expenditure is how to understand the characteristics of the costs which are the must have and nice to have. How concretely? Must have more function of an item. For example the vehicle, someone needs a vehicle as a means of transportation. However, whether such vehicles should be high-priced, European-made, shaped luxury sedans, and so forth, it is nice to have.

The next step, first, make sure all the costs you spend on a plan. If you want your financial condition is not included in the condition “greater than the pivot pole”, then the discipline in a plan and execute it is absolutely essential. Planning expenditures that could be annual, monthly, and weekly. Create a detailed needs of your spending. Then meditate on each item first, whether the spending plans were a necessity or simply the desire.

Plan
Second, review the spending plan before implementation. Say all the spending plans already made is believed to be based on something that is must have. Is the problem over? Not yet. Check before implementation. That is, at the time of execution, may be items that would be funded were not a need anymore. What for example? In June, you’re planning to buy new shoes. Apparently, the shoes you have are still good. Purchase new shoes would no longer be required.

Third, innovate for costs to be issued. Innovation cost far more strategic than the two things mentioned above. How does that mean? A simple example, you allocate the funds to pay for transportation to the office, for example, to buy gasoline. This is indeed necessary.

However, do you ever think that the cost of petrol vehicles do not always have to be borne alone? How come? Very able. If you live in the complex, you can actually invite the neighbors to get together to ride your vehicle to the office. Then for the cost of petrol is borne along. Maybe you feel ashamed for doing it. However, try to use rationality. Or if you do not want to use these ways, can vote the opposite way, ie, you are riding your neighbor’s vehicle. If you do this three times a week, calculate how much savings that can be done in a year.

Innovation costs can also be done in other contexts, let alone the needs of secondary or tertiary in nature, such as travel. Currently, nearly all of the needs of tourism. However, not all people are able to plan and finance travel well. For example, buying a plane ticket before departure. Clearly, ticket prices will be very expensive. In fact, the plane ticket let alone the promo can be very cheap if bought in advance.

That innovation costs in the context set of expenditures. Even more sophisticated is that if innovation costs can be applied in all settings of your assets. One example is if you have unproductive assets. Do you have more than one house. Houses that do not you live in is the cost. Because you have to bear the cost of electricity, water, maintenance, and others. To be home is not a burden; it must be productive, such as rent, so he became a source of revenue.

In order condition is greater than the revenue expenditure can be avoided, then the entire expenditure plans items that have been made to do a review, whether there is room to apply the innovation in it. The simplest is your monthly spending plan, whether in monthly shopping frequency is more suitable and efficient than, for example, spending per bi-monthly, or shopping through the orders.

Thus, the true cost of innovation is not just in the context of items to be purchased, but also in terms of buying procedures. Another example, shopping at the time of season sale could be categorized as innovation costs, all items purchased is indeed a necessity. So it was not because of emotional factors. Good luck.

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