How to manage finances wisely
The most important thing to learn how to manage finances is to know Difference between needs and wants. When you can control what you want, it’s easy to prioritize spending on what you need. Especially if you have installments like home and car mortgages. This is how you prevent “shortness of breath” at the end of the month, because it’s payday, money Already dilution yeah!
Here are 6 ways to manage finances so you can take control of your monthly expenses prevent waste as desired!
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Create a monthly budget
To control monthly expenses, make sure to create a monthly budget and prepare it at the beginning of each month before spending the income received. For this method of financial management to be successful, you must carefully and regularly record expenses.
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Set income aside for savings and investments
Do it save on computer as an obligation. Instead of saving from the remaining expenses, change it by making saving a priority and setting aside a portion of your savings for savings at the beginning of each month.
Aside from saving, the way to manage finances while preparing for the future is to: investment. Preparing for the future simply by saving is difficult and sometimes not enough. Early investing can be passive income later in retirement or if you plan to retire early.
Also read: 7 ways to start an online business from scratch, anything?
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Use credit cards wisely
When using Credit card, the charges will be borne by the bank in advance until the total charges payable to the bank are sent to the bank at the end of each month. Use credit cards wisely to avoid situations where you can’t pay bank bills.
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Create daily financial reports
Record all expenses so you can track each transaction and evaluate which expenses can be minimized to control expenses each month.
Also read: Simply! How to create financial reports
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Create two bank accounts
Creating separate accounts can be a great way to manage finances. dedicate one Savings Account and another account for receiving salaries and expenses. By distinguishing these two accounts, it becomes easier to see transactions made while saving and also easier to manage expenses.
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Selection of the most suitable rates
Do you dream of buying your own house and car? Dong must be! There are currently many ways to make your dream home and car come true, one of which is through mortgage. But, hence your installments NO swelling and self make you dizzy, choose the right rate depending on your income! How The method?
Apparently there are several conditions that you must meet in order to participate in this mortgage program. For example, subsidized mortgages require you to have a steady salary of at least $4 million. This minimum fixed salary requirement helps measure the ability to pay fixed installments.
You can also choose the right one for you, both for the installment payment and for the repayment of the vehicle budget You. Bring back your sense of prestige! The creditor can also refuse if the mortgage calculation is not reasonable based on your installments. If appropriate budgetdon’t mind making mortgage payments on time.
Mortgage calculations based on the safest rates are 15-30 percent of your salary. Then the next question: How do you settle house payments, for example, or regulate vehicle payments if you have a fixed salary of 7 million for a house unit? Let’s do the math, yay!
Let’s say you buy a 170 million home in Bekasi with a subsidized mortgage. Installment payments use an allocation of 20% of your salary. The DP you need is 1% or 1.7 million.
(House price – DP) (total salary x 20% award)
= Rp170,000,000 – Rp1,700,000 = Rp7,000,000 x 20%
= Rp168,300,000 = IDR 1,400,000 / month
For,
Rp168,300,000 / Rp1,400,000
= IDR 118.8 months (9 years 9 months)
You can use the example above to assess your ability to pay off a house or arrange for a car to be paid for. Or use the calculator to calculate possible mortgage payments for a house or car. However, this does not mean that this is the main benchmark, as each mortgage provider has its own terms and conditions. For example interest rates or different DP prices.
Aside from a home, like a car, or arranging other vehicle paybacks, you also need a careful plan. For tricks see below!
- Choose dealer or leasing trustworthy.
- Consult your car rates with the party dealer.
- Of course, prepare funds for your auto rate allotment.
- Use credit simulations to estimate the appropriate installments.
- Never delay paying your car installments.
- The most important thing is to adapt budget your finances.
Also read: Tips for choosing the best car insurance
methods of financial management
In addition to these 6 types of financial management, there are 6 methods of financial management that can be used. Learn these 6 methods below!
One way to manage finances is by kakeibo. Managing finances with kakeibo is one method management of household finances which is mostly done by Japanese housewives because many of them play the role of treasurer in their household.
To make kakeibo, all you need is a notebook and stationery, both pens and pencils. Then answer these 4 questions after receiving your salary:
- How much money do you have?
- How much save?
- how much to spend
- How to increase the money saved?
After evaluating these 4 questions, plan expenses that can be divided into 4 categories:
- Primary expenses, which are obligatory expenses (daily activities such as household purchases, taxes, etc.).
- Incidental charges or expenses that are not mandatory and can be deferred at any time.
- Culture, expenses for knowledge-promoting activities such as museum visits, concerts or films.
- Special expenses, i.e. unexpected expenses, e.g. B. if someone gets sick.
Financial governance using the envelope method is very good if you transact frequently cashless. To perform this method, prepare several envelopes with categories of needs and desires that will be used as expenses this month. Determine the amount of money in each envelope according to the preferences of the reasonable financial situation. When you receive your salary, put money in each envelope and record the expenses made.
The 50-30-20 method is a way of managing finances by using 50 percent of income for basic needs, 30 percent for personal desires, and 20 percent of income for savings.
Unlike the previous 50-30-20 method which would be suitable if you don’t have installments and bills. Meanwhile, the 10-20-30-40 method governs your salary, one of which is for installments like a home or car mortgage. It even reminds us to be useful to others You know! In this method, 10 percent is allocated to humanity such as donations, 20 percent to savings or investments, 30 percent to installments, and another 40 percent to meet your basic needs. Come learn together!
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The snowball budget method
Financial management according to the snowball budget method is suitable when there is a lot at stake Debts and want to pay it off little by little.
The first way to do this is to determine the total debt that needs to be paid and break it down into the smallest to the largest amount of debt. If you already know the smallest amount of debt, start paying from there and continue until you pay off the large amount of debt.
also read : 7 ways to tell real and fake gold apart, know now!
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Method of using the application
Financial management just keeps getting easier with the applications available at smartphone so that it can be accessed at any time. You just need to download the application and follow the methods provided by the application to manage the finances. in general application budgeting It offers the possibility to create categories of expenses according to the needs of the users.
Whether the world is experiencing a financial crisis or not, knowing how to manage finances is important so that one can save money and prepare for future savings or unexpected events.
How to manage finances you can apply for. It is important to make preparations for the future from now on, one of which is to be had Health insurance who can help manage finances, especially when unexpected things happen. Super Simple Health out of great you can help with comprehensive health protection from IDR 135,000 per month, You know! Come on check it now!
