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They The rich are not those who have large incomes or can buy luxury goods. If you can't manage your finances well, no matter how much money you have, it will run out quickly. This is why everyone must have financial knowledge. In order to help manage finances better, quite a few even have more than one account and choose savings without admin fees.
Maybe there are some of you who are still confused about how to manage your finances well. For more details, here are tips for managing monthly accounts.
1. Create a Monthly Budget
It's easy to spend money. However, if these expenses are not controlled, your monthly income will always run out. To avoid experiencing problems like this, you can make a monthly budget.
This monthly budget should be made at the beginning of the month or before you start spending the income you earn. Record regular expenses. From each expense that has been recorded, start to create a priority scale.
When making a monthly budget, routine expenses such as electricity bills, credit bills and living expenses for one month must be prioritized. Don't forget to always budget for an emergency fund in anticipation if unexpected things happen.
2. Set aside some of your income for savings
Saving is mandatory. You must always cultivate and apply this kind of mindset. However, don't save from your remaining income. On the contrary, set aside some of your income for savings at the beginning of the month.
Saving at the beginning of the month has many benefits. Apart from providing a guarantee that you can save every month, this method also helps you manage your expenses to be more selective.
3. Use credit cards wisely
Nowadays buying goods is getting easier. Even with little capital, you can get expensive goods on credit. However, not being wise in using a credit card can be unhealthy for your finances. Therefore, you should try to use a credit card when shopping for large amounts or when in a pinch. Apart from that, choose a credit provider that has low interest rates and has easy policies.
4. Make Daily Financial Reports
Every expense must be recorded. Do this every day. Daily financial reports can be a tool to control your expenses. Apart from that, you can also use this report to analyze expenses that are not so important and avoid them in the future.
5. Set aside income for investment
Retirement must be prepared early. However, saving alone is not enough. You also have to prepare for old age by investing. This investment will later give you passive income to meet your needs when you are no longer able to work.
Since you are young, set aside some of your income to invest. You can start from investment instruments that you are familiar with first. If you are new to the world of investment, you should choose instruments with low risk.
6. Create Two Bank Accounts
Having two or more than one bank account can help you manage your finances more easily. For example, one account is for savings and another account is for receiving salary and meeting monthly needs. But if you want to open more than one bank account, you should look for a bank that has low admin fees or even no admin fees at all.