Maintaining finance so that it is always stable is very important. Because financial conditions affect the quality of life as a whole. If financial conditions deteriorate, meeting a number of needs will be disrupted.
The possibility of an impact will last for a long time. Therefore, it is important for you to avoid it from the start. Do not let these unstable financial conditions actually bring you into a prolonged financial crisis.
Strive to always keep your financial condition stable and run smoothly in the following ways.
With Budget, Financial Management Is Better
Stable or not your financial condition is influenced by the arrangement and management of all items contained in finance. For this reason, the first step that must be done is to prepare a financial budget.
In the budget, all posts are in a balanced and reasonable position. This budget will help you allocate income and manage it for a variety of needs, for example buying basic necessities or paying installments or investments.
Then, how to compile an appropriate financial budget? The 50/20/30 or 50/20/30 budget formulas are an effective way of preparing financial plans or budgets. From the income owned, allocate:
- 50% of income for daily needs such as house rental or transportation costs.
- 20% for financial purposes such as savings, investment, or credit payments.
- 30% for personal needs such as eating out or watching in the cinema.
Have a Financial Goal That You Want to Realize
Financial objectives help you to manage a number of steps in financial management. With the financial goals, you are more motivated to be able to achieve certain things such as child education savings.
In finance, it does require you to have a goal that has a good impact on life in the future. This will automatically bring you to a stable financial condition for a long time.
Start Saving Regularly
In addition to the income intended for fulfilling needs, you also need to secure the future by saving and saving 20% of income as savings funds.
Saving regularly will make you accustomed to monthly responsibilities. The impact is good for finance for the long term. Because you will have a number of fixed deposits every month which are getting bigger and bigger as well.
Set aside funds for investment
In addition to saving, investment is another right step that you must do to secure your finances in the future. Invest regularly every month by taking 20% of income. However, if you already have savings, take 10% of your income to be allocated as an investment.
There are many choices of investment instruments that you can consider. You can choose one of the instruments that are most appropriate and suitable for your finances so that finance can work well and even better in the future.
Manage Shopping Money Smartly
In the financial budget, it is clear that around 50% of your income is set aside for meeting daily needs. It will feel better if you manage shopping money smartly.
How to manage shopping money intelligently? You can do some of the steps below to manage shopping money smartly.
- Understand well, what exactly are the basic and mandatory needs for you.
- Using discount facilities, vouchers, special offers, or other programs that can save money when shopping.
- Do shopping activities planned by compiling the list first.
Transfer of Ineffective Expenditures
Start saving and cut expenses that are not so important. If you are serious about it, the impact can be very large and you can divert it into a savings or investment post. This savings can be done starting from small things, such as limiting hangouts in cafes or malls or reducing food in the food court.
Always Periodic Financial Evaluation
In order for finance to remain stable, you must implement a number of policies in finance. This will not be difficult, especially if you really have a great intention to do it. Don’t forget to do financial evaluations regularly. That way, you can see developments and achievements in your finances.