Finance is a very important thing for you to manage. Managing finances will not be as easy as you see on television or seminars. However, you still have to try to know how to manage finances properly and correctly.
There are actually many ways to manage finances. Of course, you have to choose which method works best for you. Several factors such as how much you earn, how much you spend, what are your dependents, to your future plans will determine the right way to manage finances.
How manage money better
1. Create a financial budget
Creating a budget is one way you can put your money to good use. Try to always make a priority scale. Priority will prevent you from buying something you don't need. In addition, a financial budget will give you an idea of how much your monthly expenses will be.
2. Pay off your debt
The way to manage finances is good and right is to not have debt. There's nothing wrong with going into debt, but debt will keep your finances from increasing and will actually be burdened. If you really have to go into debt, then you have to pay attention to the amount of interest and also the repayment period of your debt.
3. Imagine you in old age
What you want in old age will determine the direction of your financial management. Whether you want to live simply in the village or want to spend your old age on vacation, everything requires careful financial planning.
4. Prepare insurance
One way to manage finances in difficult times is to set up a special fund for insurance. With insurance you don't have to worry if something happens that you don't want. However, you need to choose insurance that is reliable, easy to withdraw funds, and low premiums according to your ability.
5. Invest your money
Investing money is a must nowadays. You can invest now with a relatively low nominal. In addition, now you can also choose a wide selection of investment products.
There are several types of investments, ranging from low to high risk. Investment will provide benefits for you in the future.
6. Save a dime
Never underestimate the changes you have. You can use a piggy bank so you can keep your change. Without realizing it, the change you collect can be used for your tertiary needs.
7. Don't forget to save
Saving is very important in managing finances well. It seems that everyone already knows about the importance of saving. But one thing that is important is that you should not keep too much money in a savings account.
8. Separating needs
Basically you can divide your needs by time such as short term, medium term, and future. You must prioritize short-term needs in their fulfillment, but you must also consider your future needs.
9. Record monthly finances
You will find out which sectors you can still save on and which sectors you can prioritize.
10. Control yourself
Your mind and psychology in managing money is very important to note. There are many people who are very extravagant when it comes to making a lot of money. In such cases, it is actually the mind and psychology of the person who plays a bigger role in managing finances.
11. Visit a financial consultant
As has been said above that the financial management of one person with another person is different. Therefore, you should consult someone who is more skilled. Because there are many factors that can affect one's financial management. A financial consultant can provide advice that can improve your money management.