People who fail to plan are planning to face failure. With planning and action, it is a recipe for success.
Good financial management starts with yourself first. When we ourselves have good habits, we can easily manage our family finances.
Here are 5 wise financial management tips for you who have a family.
1. Create a Budget
Create a personal budget that includes your daily, weekly and monthly expenses. It is better if you can plan your finances for a period of one year straight.
Once you have a budget for yourself, now it is easier to create a budget for the family. Enter family expenses such as house money, internet bills, kitchen items, children's school equipment and so on.
With a budget, we can estimate whether it is enough or not. With this data, you can take action to reduce expenses or increase income.
2. There is a Savings Plan
Make sure that every time your salary comes in every month, save at least 10% of your salary. Before continuing to spend on other affairs, make sure we save for ourselves first.
We are advised to have an emergency fund of 6 months monthly salary. If our salary is $4,000 a month, make sure we have $24,000 in this emergency fund.
It's nothing, it can be used when we are crowded or afflicted by any misfortune. There is no need for us to borrow or beg later. Worse if we had to borrow with Along.
3. Needs vs. Wants
There is actually a lot of room for us to reduce spending, just have to be good at distinguishing between needs and wants. With the convenience of online shopping, there are only sales every month.
Only spend according to need and ability, the rest can go into the savings fund.
4. Generate Ancillary Income
Use the skills you have to generate side income for you and your family. For example, if you are interested in cooking and delicious when cooking, you can just take a wage to make cakes or cookies.
When there is more money, the more we can save every month.
5. Invest
When you have a savings of 6 months salary, use the extra money to invest. But start by investing in knowledge first.
Understand the concept of ‘high risk high return’ in investment as well as the concept of diversification in accordance with the saying ‘Don’t put all your eggs in one basket’.
6. Give alms
The hand that gives is better than the hand that receives. If you really understand the concept of donating, surely you will always want to donate even in small amounts.
God will increase the sustenance and meet the needs if you share the sustenance with others who are more in need. So don’t be afraid to give alms
