Pay attention to how you manage the finances that come from your parents’ salaries or pocket money so that you can gradually increase savings and investments and minimize the costs of everyday needs. In fact, in reality, the implementation of a financial plan is not as easy as fantasizing about creating it. However, if you follow the procedures designed for a higher performance goal, maybe even with a minimal income you can still be satisfied and save even more.
73% of millennials are in debt just because they look luxurious, want to make more friends, and don’t know how to manage millennial finances. This data comes from a survey conducted by Credit Karma. Would you like to be one of them? Certainly not! How one? Be careful how to manage your finances well.
1. Create a plan 1 in the first month
Confused about the first step to managing your year-end finances? What you need to prepare to welcome the coming year is an estimate of the expenses in the coming month, such as:
For your finances to be healthy by the end of the date, you should estimate that the amount of money that will be spent from the earnings you have earned will not result in negative value.
2. Prioritize paying monthly installments or debt
If you have dependent installment debt from the previous year that hasn’t been paid off yet, then you need to prioritize that payment. It could be that if you delay your regular monthly payments, they will swell and generate significant profits or interest.
The more you get used to these bad habits, the less likely they will occur. It is also very dangerous for your financial health and the assets you currently have for your family’s future. Usually, this becomes a big problem when you have prepared how to organize your finances in a mess.
3. Pay off debt before incurring new debt
Most people can’t wait to have new things right now to have a new item at this point you don’t have to buy it in cash or you can go into debt in installments every month.
We recommend that if you want a new product/item at a rather expensive price, but which can be paid in installments, try to postpone this desire at first. Because the more installments you make, the more you typically spend each month, and it gets worse.
4. Buy goods according to your needs
We often buy things without realizing that it is just temporary desire. This bad habit, if continued, will interfere with the money spending you plan to do.
In this incident, there is a high probability that you will have a disappointing result, and what is worse, your finances will not be enough by the end of the month, leading you to look for a loan to cover it.
5. Prioritize saving
No matter what your salary, make it a priority to always save a percentage in another account. Like it or not, this is what parents in China teach all their children to always save in a disciplined manner, even if the money received is not too big.
Saving can be difficult if you are not used to it, but with the savings you get, you can use it later for urgent needs, an example is when you get sick, it is usually necessary to buy medicines, or even Your vehicle suddenly breaks down.
6. Quality holidays in a cost-effective way
If you often take time off from the fatigue of everyday office life to go on vacation at the weekend, you should go on vacation to a place that is not too far away or doesn’t cost a lot.
For this reason, planning activities need to be carried out, for example, when you can take a free vacation to an open area such as a square/park for an ordinary short vacation so that you can have vacations along with exercise.
However, if you want a long trip and need sufficient spending, you can set the schedule of activities in advance, so you can start saving before departure.
7. Join the insurance program
The right insurance is needed by today’s society, especially in life insurance. For example, BPJS insurance is administered by the government with a community/employee health insurance scheme.
If you follow the insurance payment program regularly and suddenly you get sick and need to be hospitalized, this insurance can help you pay for the medical expenses and accommodation which are entirely covered by the government aka you don’t spend little expenses.
8. Have extra income
If you are an office worker then the salary you receive will go on and stay as the cost of living is now getting higher and higher. For this, as a person with a fixed but minimal income, you should try new things.
First, you can invest in small businesses, starting with investing in friends or closest friends who you can trust. The second is trying to do business online.
While someone who has worked in a company will find that the rules don’t allow you to have a side job, you can try an online business, one of which sells online, with an online system, which can save you more time and space. Of course, you can also work on public holidays.
Don’t have an item you want to sell online? Don’t worry! Because today many websites can be a place for talented people to channel their hobbies with a pretty high salary. For example as a graphic designer, article writer, website builder, or others.
9. Try investing in gold
Unlike saving ordinary money, investing in gold can be reconsidered by you. The selling price of gold, which sometimes rises and falls, can be used by you to try and buy gold for savings.
It’s clear to see that the retail value of gold will continue to increase each year, so there’s no harm in trying. You may also find it easier to sell it at a price that doesn’t fall as much as other types of goods when you need it in an urgent situation.
10. Rate last year’s mistakes
Everyone certainly makes mistakes, intentional or not, and the best people are those who can learn from their mistakes and not repeat them. This is something that needs to be emphasized to the heart itself.
Before you carefully plan for the month or year ahead, consider what your mistakes were that caused last year’s finances not to turn out as expected.
This can be used as evaluation material for further future planning to achieve maximum results and most importantly to create future goals in line with expected financial goals.
These are some descriptions of messages or finance management tips that can be considered and used as a reference in your life.