Some smart ways to manage your own finances so they are not wasteful
How to manage finances has always been one of the most sought-after information online. How not, there are many people out there who are overwhelmed in managing their finances. As a result, financial conditions are often unstable and even experience serious problems.
Basically, everyone will have their own way of managing finances, where various policies are applied in it. But even so, various bad habits are also often the cause of financial problems. If left without improvement, it is not impossible that the financial condition will deteriorate over time.
Financial arrangements must of course be adjusted to income and also various expenditure posts in it. How to manage household finances will obviously be different from how to manage personal finances. But when someone is used to being able to manage their personal finances well, then the person concerned certainly understands how to manage household finances so that they are not wasteful after marriage later.
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How to Manage Finances in a Balanced manner
Get used to managing finances with precise and realistic calculations, where income is proportional to expenses. This way of managing personal finances will allow all needs to be properly met, and various financial goals can also be achieved on target.
The same is true in managing household finances, where there are more people who depend on the finances themselves. It is important to have a way of managing household finances so that they are not wasteful, so that all the needs of people in the family can be met properly, including needs such as education and others.
The following are some ways to manage finances smartly and wisely:
1. Prepare a Financial Budget
The first step that must be taken in managing finances is to prepare a financial budget in advance. Whatever income you earn, it is important to always allocate it appropriately. How to manage household finances will be much easier, if from the start you have the right budget.
Plan what expenses are made in finance, so that all needs can be met. Don't forget to make savings and investment posts, because both are mandatory components in the financial budget. Arrange all expenditure items in a balanced and realistic manner, so that they are easy to implement in real terms.
2. Prioritize Needs
Still related to the points above, make sure to always prioritize needs, rather than various wants. It is important to understand these different needs and wants from the start, so that you can spend your money wisely.
How to manage personal and household finances will be much easier, if from the beginning you have a good understanding of what really must be fulfilled. Make proper monthly spending records and adhere to them well, so that expenses can be controlled at all times.
3. Use Credit Cards and Shopping Promos Wisely
The next way to manage household finances so as not to be extravagant is to save money. Take advantage of credit cards to get discounts or cashback that can save monthly expenses. Usually credit cards will offer many promos at supermarkets or even e-commerce.
In addition, also check shopping promos in online stores and supermarket subscriptions, so that monthly expenses can be reduced. Make purchases regularly and not too often, so that expenses can be reduced. Use credit cards wisely, so that unnecessary purchases can be avoided.
4. Don't Forget Savings
Regardless of your monthly income, make sure to allocate some funds into a savings account. Ideally, save 10-20% of your income into a special savings account every month. This will make financial conditions healthier and there are a number of funds that can be used for various needs other than basic monthly needs.
5. Make an Investment
Just like a savings post, a post for investment must also be in finance. Allocate at least 10-20% of income for this one need. Investment is a financial activity that can later bring a number of benefits in finance.
How to manage finances properly, will allow everything to run smoothly, including this investment. Investment returns can also help make achieving various financial goals easier. If done consistently, investment can even bring huge profits in finance.
6. Prepare an Emergency Fund
How to properly manage household finances is certainly not complete without an emergency fund. An emergency fund is a number of funds that can be used at any time, if financial conditions are in an emergency. Or, to deal with various emergency conditions that cannot be overcome by using monthly money.
Meet the needs of this emergency fund properly, allocate a certain amount of funds from income each month. Ideally, the amount of emergency funds is at least 6x the monthly expenses for those who are single, or 12x the monthly expenses for those who already have dependents. Keep emergency funds in a separate (special) account, so that they are not mixed with other funds or even used up.
7. Pay Off and Avoid Debt
If you still have an obligation (debt), pay it off immediately. Pay off in stages if the debt value is large enough. In addition, avoid having new debt in finances. This will minimize financial risks and burdens, and at the same time make financial conditions more stable in the future.
8. Prepare a Pension Fund
How to manage smart personal finances must of course be sustainable. Don't forget to prepare a retirement fund from now on. Calculate how much you need for retirement funds and start paying in installments regularly every month. Put these funds into a special account first.
But if the amount is quite a lot, then there is no harm in allocating it into investment. Choose low-risk instruments, such as gold, mutual funds, deposits, or others. If necessary, seek advice from financial experts regarding the procurement and management of this pension fund.
9. Perform Financial Evaluation Periodically
If all the ways to manage finances above have been carried out in finance, then don't forget this one. Do periodic evaluations in finances, see which areas need improvement. This will enable the way to manage finances will continue to be better in the future.
How to Manage Finances for the Sandwich Generation
The way to manage personal finances for the sandwich generation will certainly be different from the others. The sandwich generation is a generation that is obliged to bear the cost of living for 3 generations related to it, namely: parents, themselves, children and other family members.
If you look at the facts above, it is clear that the financial burden of this sandwich generation is huge. How to manage household finances so that they are not wasteful is also very necessary, especially if you are already married. In addition to implementing the above methods of managing personal finances, this sandwich generation also requires special handling of their finances.
Here are some ways to manage household finances that are right for the sandwich generation:
1. Set a Tight Budget
The sandwich generation must apply ways to manage household finances so that they are not wasteful. This can be started by setting a strict spending budget from the start. Cut all non-essential expenses, and prioritize basic needs first. Do this for all expense items in finance.
2. Directly allocate income for basic needs
Don't forget to immediately allocate salary for monthly basic needs (meals, routine bills, transportation), including installments and debts. For example: 50% of income for this basic routine need, where debt installments are included. This way of managing household finances will allow household needs to be met properly all the time.
3. Meet the Needs of Savings, Investments and Emergency Funds
Don't forget to allocate 20% of your income for the three components above. 10% for emergency funds, then another 10% for investment and savings needs. Immediately set aside this need as soon as payday falls, so as not to be delayed or even eliminated.
4. Find Additional Income
Start looking for additional income for finance, so that more money can be saved. This can be done by looking for a side job or even running a side business. But make sure, the activity of looking for additional income does not interfere with the main job.
5. Adopt a Thrifty Lifestyle
The way to manage finances with cardas is to apply a frugal lifestyle. Leave all habits that are consumptive and just a waste of money. Be wise in managing expenses, so that financial conditions do not experience problems.
Apply the Right Way of Managing Finances
Having a good and stable financial condition is everyone's desire. This is not easy to realize, especially if you have various wasteful habits in spending money. Start applying the right way of managing finances, so that financial conditions can get better in the future.