11 Ways to Manage Finances Properly and Properly
Finance is something that is very important for you to manage. Managing finances will not be as easy as what you see on television or seminars. However, you still have to try to know how to manage finances properly and correctly.
Actually there are many ways to manage finances. You certainly have to choose which method is most suitable for you. Several factors such as how much your salary is, how much you spend, what are your dependents, to your future plans will determine how to properly manage finances. Here's how to set up monthly finances that are right for you.
1. Make a financial budget
Creating a budget is one way that you can use your money properly. Always try to make a priority scale. Priority scale will prevent you from buying something you don't need. In addition, the financial budget will give an idea of how much your monthly expenses are.
2. Pay off your debt
The way to manage finances properly and correctly is to have no debt. There is nothing wrong in debt, but debt will keep your finances from growing and you will be burdened. If indeed you have to be in debt, you must pay attention to the amount of interest and also the period of time to pay off your debt.
3. Imagine you are in old age
What you want in your old age will determine the direction of your financial management. Whether you want to live a simple life in the village or you want your old age to be spent on vacation it all requires careful financial planning. Financial planning must start from good financial management.
4. Prepare insurance
One way to manage finances in difficult times is to prepare a special fund for insurance. With insurance, you don't have to worry if at any time something you don't want happens. However, you need to choose insurance that is reliable, easy to disburse funds, and a low premium according to your ability.
5. Invest your money
Investing money is a must in today's times. You can invest at this time with a relatively low nominal. In addition, at this time you can also choose quite a lot of investment product options.
Investments have several types ranging from low to high risk. Investments will provide benefits for you in the future.
6. Save the change
Never underestimate the change you have. You can use a piggy bank so you can save your change. Without feeling the change you collect, you can use it for your tertiary needs.
7. Don't forget to save
Saving is indeed very important in managing finances properly. It seems everyone already knows about the importance of saving. But one thing that is important is that you should not save too much money in savings.
This is because your money will be consumed by inflation. Investing is something that you should consider when managing your finances.
8. Separate the various needs
Basically you can divide your needs based on time such as short, medium and future. Of course you have to prioritize short-term needs in meeting them, but you also have to consider your future needs.
9. Record monthly finances
Your monthly financial records will help you evaluate your financial management. You will find out which sectors you can still save and which sectors you can prioritize more.
10. Take control
Your mind and psychology in managing money is very important to note. There are many people who are extravagant when they are making a lot of money. In such cases, it is actually the mind and psychology of people who have a bigger role in managing finances.
You have to be able to resist controlling your desires. Understand again about wants and needs.
11. Visit a financial consultant
As has been said above, financial management varies from one person to another. Therefore you should consult with someone who is more expert. The reason is that many factors can affect a person's financial management. A financial consultant can provide suggestions that can improve your money management.
Managing Finances According to Successful People
Warren Buffet who is the richest man at number three in 2015 said you have to spend less money than you have. If you have expenses that are as large or even greater than your salary then your finances will be destroyed sooner or later. You will not be able to allocate your money for savings, insurance, or even investments.
Jack Ma who is a successful entrepreneur said that if you have to plan your future carefully. Jack Ma's success was something he had been planning for a long time. Many people are too focused on the present and forget about the future.
Carlos Slim who is a big businessman from South America argues that you should try to develop or grow the money you have. There are many people whose goals are to make a living off the growing money you have today.
Indeed money is not everything in life. But the right way to manage finances will help you organize your life better. Managing finances early will help you prepare for things in the future. In addition, you can also ensure that your life can go well for you, not only for yourself but also for those closest to you.