Managing your monthly finances is actually a difficult and difficult task. Many people learn or just read articles on how to manage finances properly and correctly from the experts directly and via online. That’s fine, considering managing finances is very beneficial for your financial future.
Operate in a balanced way, not having a bigger stake than a pole, causing a financial deficit. Therefore, it is necessary to know the details of short-term and long-term expenditure, as well as to make savings efforts.
If you are still confused, here are some ways to manage finances that are guaranteed to be effective in building a more stable financial future.
Set Salary with Principles 50-20-30
How to manage finance on this one is very simple, but not many people know. So set a budget with a 50-20-30 system. What is that? Every salary or income you receive every month, allocate 50% of the money for daily living expenses, such as food, transportation costs, paying rent for houses, electricity and water bills, including credit card bills.
Next, set aside 20% of salary for savings and investment. You must allocate money for emergency funds, for example when you fall ill, a broken motorbike, or other unexpected events. Don’t forget to use it for investing in pension funds or other investment instruments. These funds should not be contested.
While the remaining budget of 30% of your salary for entertainment, holidays, shopping for clothes or buying desired items. If this budget allocation is considered too large, you can reduce it. Actually you can adjust it yourself by sticking to the 50-20-30 principle.
Describe yourself at the age of 80 years
Right now you are still in the age range of 20-30 millennials. But try to imagine yourself at the age of 80 years. Do you still want to work to earn money or find yourself in need of an online payday loan cash advance, or want to enjoy life with your children and grandchildren? If you do not want your retirement to be miserable without sufficient financial provisions, of course you should start thinking about retirement savings since you are young.
Imagine also at the age of 80 years, you already have a home and a vehicle, send your children to graduate school, the whole family is protected by insurance, there are businesses that support old age. How beautiful right? To achieve all that, you need to manage finances properly while young. Of course you can without having to sacrifice your lifestyle.