Who always runs out of money at the end of the month? That means, you have to manage your finances. Most people often have dark eyes when they have a lot of money. Especially the women who want to buy anything when shopping, without thinking about the risks first.
For example, when you see a discount, surely women are easily tempted. Even though you can still get a discount at any time, and buy it anytime. You should prioritize basic needs first.
As you get older, you have to be smart about managing your finances, because your needs will increase as well. So, so that you don't get confused anymore where your money goes, let's see how to manage finances below!
1. Recording Income and Expenditure
The first important thing is to record all your income and expenses. Every day you have to record money that comes in and money out, even if it's just to pay for parking.
If you don't want to bother taking notes on paper or cellphone notes, use a cash application that can serve your monthly money count. That way, the salary received at the beginning of the month can be estimated. But you have to be consistent!
2. Make a Financial Budget
Make a budget for your monthly expenses, so that financial goals are clear. List of monthly needs, such as the cost of electric soap, data packages, and others.
Determine the nominal item or bill, so that it is easy to calculate. Set aside these needs after receiving your salary, so that your mandatory needs are met. Remember to make a realistic budget yes!
3. Provide Emergency Money
After creating a budget, set aside some money as an emergency fund. We never know what will happen in the future. Suppose you suddenly get sick, so you can just use an emergency fund.
This way you won't have to worry about buying drugs because your finances are well regulated. Calm down!
4. Distinguishing Needs from Wants
The thing that often drains the pocket is not being able to distinguish between wants and needs. Often people hide behind the word self reward, so they are willing to spend a lot of money.
After that, you must be short of money at the end of the month. Prioritize basic needs first, such as bills, basic materials, and the need for work.
5. Avoid Debt
Now this one thing is no less important, if we are in debt, the salary money every month is not enough. Let's say your salary is IDR 3 million per month, and you have a debt installment of IDR 1 million, then the IDR 2 million has been allocated for basic needs. Of course, automatically there is no emergency fund and savings, surely at the end of the month your money will be dry.
Let's be smart in managing finances. Follow some of the ways above, so that your finances are well managed. In addition, don't forget to save for the future or old age. Work spirit!