DDHK. ORG – Managing monthly finances is not a difficult or easy matter. It takes habit so that you are good at managing incoming and outgoing money.
As reported HSBC.co,id, those who are rich are not those who have a large income or can buy luxury goods. If you can't manage your finances well, no matter how much money you have, it will run out quickly.
For this reason, financial knowledge must be possessed by everyone. To help manage finance better, not even a few who have more than one account to choose savings without admin fees.
There could be some of us who are still confused about how to manage finances well. For more details, here are tips on managing a monthly account.
1. Create a Monthly Budget
It's very easy to spend money. However, if these expenses are not controlled, the monthly income will certainly run out. In order not to experience problems like this, you can make a monthly budget.
This monthly budget should be made at the beginning of the month or before starting to spend the income earned. Keep track of routine expenses. From every expense that has been recorded, start to make a priority scale.
When making a monthly budget, routine expenses such as electricity bills, credit bills and living expenses for one month should be prioritized. Don't forget to always budget for an emergency fund in anticipation of unexpected things happening.
2. Set aside some income for savings
Saving is mandatory. This mindset must always be instilled and applied. However, don't save from residual income. On the contrary, set aside some of your income for savings at the beginning of the month.
Saving at the beginning of the month has many advantages. In addition to guaranteeing that you can save money every month, this method also helps manage expenses to be more selective.
3. Use a Credit Card Wisely
Nowadays buying goods is getting easier. Even with a little capital, you can get expensive things on credit. However, not being wise in using a credit card can be unhealthy for our finances. Therefore, you should try to use a credit card when shopping with a large nominal or when pressed.
In addition, choose a credit provider that has low interest and has a mitigating policy.
4. Create Daily Financial Reports
Every expense must be recorded. Do this every day. Daily financial reports can be a means of controlling our expenses. Apart from that, we can also use this report to analyze expenses that are not so important and avoid them in the future.
5. Set aside Income for Investment
Retirement must be prepared early. However, saving alone is not enough. We also have to prepare for old age by investing. This investment will later give us passive income to meet our needs when we are no longer able to work.
Since he was young, set aside some income to invest. We can start from the investment instruments that we know first. If we are new to the investment world, it is better to choose a low risk instrument.
6. Create Two Bank Accounts
Having two or more than one bank account can help us manage our finances more easily. For example, one account for savings and another account for receiving salaries and meeting monthly needs.
But if you want to open more than one bank account, you should look for a bank with low admin fees or even no admin fees at all.
That's how to manage finances. Hopefully it can be applied, friend. [DDHK News]
