What were you doing when you got your first paycheck? Buy the coveted item? Give something to the parents? Or even issued immediately? Do you already know how to manage your personal money management so that the money you have lasts until the end of the month?
Managing finances is a solution so that the money you have can last until the end of the month. Normally, children have an easy time holding a lot of money, they want to spend it immediately.
Eits, don’t be like that, huh. By knowing how to manage finances, you can also keep your financial situation stable, you know. Come on, just pay attention to the explanation of Personal Money Management strategies with a small or medium salary so that you can last until the end of the month.
Personal Money Management Tips
It’s undeniable, living in a big city, especially the capital, costs a lot. Starting with eating, getting to work, buying credit, and so on.
Therefore, not knowing how to properly manage your personal finances will affect your financial flow. You don’t want your salary to just run out, of course, do you?
Therefore, learn some of the following ways to manage finances.
1. Distinguish needs and desires
The first way to manage personal finances is to distinguish between needs and wants. The needs addressed here are the necessities of everyday life, yes. From eating and drinking to getting to work.
While desire is a lifestyle. For example buying clothes, hanging out in cafes, buying coffee at high prices, hobbies. Why do we have to distinguish between needs and wants if we want good personal finance management?
So you can find out which are duties and which you have to satisfy yourself. So that you can see where most of the money is being spent when managing your personal finances. Is it out of need or desire?
2. Create a financial plan
The next way to manage finances is to create a financial plan. How do I create a financial plan? It’s actually quite simple, you know.
You can start making a list of your monthly expenses and income by month. The aim is that income and expenses can be easily monitored.
This financial plan is also required as a reference for performing your financial calculations. So that you can later choose which ones are really needed and which ones are not.
For example, you need a weekly labor fee of IDR 200,000. But you also want to hang out in a coffee shop and you can spend the same amount.
With a personal finance management model like this, you can see what is needed and what is not, right?
3. Apply the 50 20 30 rule method
You can also use the 50 20 30 rule to easily manage your personal finances. This method is an alternative method that aims to split your finances by percentage 50 20 30 as follows:
- 50% for personal use
- 20% to save
- 30% for wishes
It is claimed that managing personal finances in this way can lead you to ideally manage money for these three needs. You can get anything that way, right?
4. Be wise with credit cards and payers
Using credit cards and Paylater wisely is a smart way to manage personal finances that you need to be aware of. Especially if you have a lot to buy in e-commerce.
There’s no denying that credit cards and Paylater features really help us get the goods we want. But if you can’t put it to good use, big bills will hit you at the end of the month.
Therefore, don’t forget to be careful when using these two finance functions! Unless it’s really an emergency, you’d be better off avoiding it.
5. Always prepare an emergency fund
Setting up an emergency fund is very important. We never know when we’ll need an emergency fund. So there’s no harm in setting aside a small portion of your income for this fund.
The nominal amount is up to you. It doesn’t have to be the same every time you put it down, but try to do it consistently every day. What you need to watch out for is that this emergency fund is enough if you need it at any time.
6. Learn about investing
Investing is also a way to manage personal finances wisely. Your investment does not have to be expensive. It is enough just to invest in mutual funds to later become your savings.
What you need to pay attention to is choosing the type of investment that is already certified and approved. Don’t be followed by fake investments. No luck, even stupid.
7. Avoid debt
Another very important thing is to avoid debt. Did you know that debt is one of the biggest obstacles to managing finances?
If there is no urgent need, then you should not be in debt. Rather than applying for credit from other people/loans, it would be better if you refrain from buying things you don’t need.
So here are some smart ways to manage your personal finances that you can use. Remember to make the financial plan as good as possible by adjusting the priority needs. Be smart when spending money on supplies in the future.
Even if you are young does not mean you are free to spend money, okay! Because we never know when the money will run out and when we will need a lot of money.