For those of you who are still confused about good financial management, here are some tips on managing your finances that you can try.
1. Apply the 50-20-30 Financial Principles
One of the ways of managing your finances that you can try is to apply the 50-20-30 financial management principles. But what do the numbers 50-20-30 mean?
The three figures are the ratio of the cost of living-saving / investment and the cost of holidays / shopping. You can try to only use 50% of your income to meet your living expenses such as food expenses, transportation, rent and others.
Meanwhile, you can set 20% for savings and investment. This will be very useful if you suddenly need an emergency fund for certain conditions. It is also recommended that you invest a portion of this fund.
For 30% of the remaining budget, you can use it for entertainment things such as shopping for items you want or traveling. However, if there is residue from the use of these funds, you should allocate it to investment or savings.
2. Prepare a Pension Fund
Still discussing how to manage personal finances well. Preparing a pension fund is a step to managing your finances that you have to do. As it is known that everyone has a productive period. When you are not productive working anymore, at least you must have a pension fund or savings to guarantee your old age.
For this, it is recommended that you start preparing your old age savings. You can start by setting aside 10% of your monthly income for pension fund deposits. Preparing for this in advance would be a good financial move.
3. Make Financial Budget Notes
In fulfilling needs, of course there is a priority scale of needs that you must fulfill first. For this section, it is recommended that you keep a record of your financial budget.
By making a financial budget record, you will be able to prioritize what needs you must meet immediately and avoid unneeded purchases. If you think this is quite a hassle, you can try using several financial management applications.
Currently, the Google Play Store provides a large selection of financial management applications with various features that make it easier for you on managing your finances.
4. Take Advantage of Insurance
Currently there are still many people who underestimate about insurance. Even though this is one thing that can be very helpful for health and old age needs. At this time, insurance is also somewhat more flexible, where they offer the option of accelerating benefits to customers or their users.
For example, if you buy insurance for your mother. You can file a claim for your mother’s medical expenses. The insurance company will reduce the costs for death by disbursing medical expenses.
You can claim the remaining insurance costs when your mother dies. This life insurance can be a stream of income for families who are left behind.
5. Always be Wise in Using a Credit Card
If you are a credit card user , you should be wise in using it. Because this credit card is a kind of double-edged knife. On the other hand, it can help you in meeting certain needs. Meanwhile, on the other hand, it can make you trapped in debt bill problems . This in turn will hurt the way managing your finances.
It is highly recommended that you use a credit card only for sudden needs. Also make sure that you pay the recorded bills on time so that it doesn’t become a problem later on.
6. Saving Change Money
Don’t underestimate a dime !! The pennies saved will be able to be your financial helper in critical times. For that, try to start saving your remaining pennies. You can save it in a piggy bank or certain container. After reaching a sufficient amount, you can transfer it to your account.
7. Solve Your Debt Problems
Owning the forest is like having a burden. Without releasing it, your finances will never feel light. Therefore, if you have debt, you should start to solve them one by one so as not to burden your finances in the future.
Start setting aside your money to settle the debts you have, whether they are small or large.
That’s a little review about how managing your finances properly that you can try to apply to build a more stable finance. This method is actualy one of so many tips on having positif life style. We hope that this article will be useful for you.