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How To Manage Personal Finance Smartly | FINANCE


How to manage finances has always been one of the most sought-after information online. How could I not, out there there are many people who are overwhelmed in managing their finances. As a result, financial conditions are often unstable and even experience quite serious problems.

Basically, everyone will have their own way of managing finances, where various policies are implemented in it. But even so, various bad habits are also often the cause of financial problems. If left without improvement, it is not impossible that the financial condition will deteriorate over time.

Financial arrangements, of course, must be adjusted to income and also the various expenditure items in it. How to manage household finances will obviously be different from how to manage personal finances. However, when someone is used to being able to manage their personal finances well, then the person concerned certainly understands how to manage household finances so that they are not wasteful after marriage later.

Confused looking for the best savings? Check out the solution!

How to Manage Finances in Balance


Make it a habit to manage finances with precise and realistic calculations, where income is proportional to expenses. This way of managing personal finances will allow all needs to be met properly, and various financial goals can also be achieved on target.

The same thing applies in managing household finances, where there are more people who depend on the finances themselves. It is important to have a way of managing household finances so that they are not wasteful, so that all the needs of people in the family can be met properly, including needs such as education and others.

The following are some ways to manage finances smartly and wisely:

1. Arrange a Financial Budget

The first step that must be taken in managing finances is to prepare a financial budget first. Whatever income you get, it is important to always allocate it properly. Managing household finances will be much easier if you have the right budget from the start.

Plan what expenses are made in the finances, so that all needs can be met. Don't forget to make savings and investment posts, because both are mandatory components in the financial budget. Arrange all expenditure items in a balanced and realistic manner, so that they are easy to implement in practice.

2. Prioritize Needs

Still related to the points above, make sure to always prioritize needs, rather than various desires. It is important to understand these differences in needs and wants from the start, so that you can be wiser in spending money.

How to manage personal and household finances will be much easier, if you have a good understanding of what really needs to be fulfilled from the start. Make proper monthly spending records and adhere to them properly, so that expenses can be controlled at all times.

3. Use Credit Cards and Shopping Promos Wisely

The next way to manage household finances so you don't waste money is to spend sparingly. Take advantage of credit cards to get discounts and cashback which can save on monthly expenses. Usually credit cards will offer lots of promos at supermarkets or even e-commerce.

In addition, also check shopping promos in online stores and subscription supermarkets, so that monthly expenses can be reduced. Make purchases regularly and not too often, so that expenses can be suppressed. Use a credit card wisely, so that unnecessary purchases can be avoided.

4. Don't Forget Savings

Whatever monthly income you get, be sure to allocate a certain amount of funds into a savings post. Ideally, save 10-20% of your income into a special savings account every month. This will make the financial condition healthier and there will be a number of funds that can be used for various needs other than the basic monthly needs.

5. Make an Investment

Just like a savings post, an investment post is also required in finance. Allocate at least 10-20% of income for this one need. Investment is a financial activity that can later bring a number of financial benefits.

How to manage finances properly, will allow everything to run smoothly, including this investment. Investment results can also help to achieve various financial goals more easily. If done consistently, investment can even bring huge profits in finance.

6. Set up an Emergency Fund

How to properly manage household finances is certainly not complete without an emergency fund. An emergency fund is a number of funds that can be used at any time, if the financial condition is an emergency. Or, to deal with various emergency conditions that cannot be overcome by using monthly money.

Fulfill the needs of this emergency fund well, allocate a certain amount of income each month. Ideally, the amount of emergency fund is at least 6x monthly expenses for single people, or 12x monthly expenses for those who already have dependents. Keep emergency funds in a separate (special) account, so they are not mixed with other funds or even used.

7. Pay Off and Avoid Debt

If you still have obligations (debt), pay off immediately. Make gradual repayments if the debt value is large enough. In addition, avoid having new debt in finances. This will minimize the risk and financial burden, and at the same time make the financial condition more stable in the future.

8. Prepare a Pension Fund

How to manage smart personal finances, of course, must be sustainable. Don't forget to set up a retirement fund from now on. Calculate how much you need for a pension fund and start repaying it regularly every month. Put these funds into a special account first.

But if the amount is quite a lot, then there is nothing wrong with allocating it into an investment. Choose low-risk instruments, such as: gold, mutual funds, deposits, or others. If necessary, ask for advice from financial experts regarding the procurement and management of this pension fund.

9. Perform Periodic Financial Evaluations

If all of the ways to manage finances above have been carried out in finance, then don't forget this one. Do periodic evaluations in finances, see which parts need improvement. This will enable the way to manage finances to continue to be better in the future.

How to Manage Finances for the Sandwich Generation


How to manage personal finances for the sandwich generation will certainly be different from the others. The sandwich generation is a generation that is obliged to bear the costs of living for the 3 generations associated with it, namely: parents, themselves, children and other family members.

If you look at the reality above, it is clear that the financial burden for this sandwich generation is enormous. How to manage household finances so that they are not wasteful is also very much needed, especially if you have a family. In addition to applying the method of managing personal finances above, this sandwich generation also requires special handling of their finances.

The following are some ways to manage the right household finances for the sandwich generation:

1. Set a tight budget

The sandwich generation must apply ways to manage household finances so they are not wasteful. This can be started by setting a tight spending budget from the start. Cut all expenses that are not important, and prioritize basic needs first. Do this for all expense items in your finances.

2. Directly Allocate Income for Basic Needs

Don't forget to immediately allocate your salary for basic monthly needs (food, routine bills, transport), including installments and debt. For example: 50% of income for this basic routine need, where debt repayments are included. This way of managing household finances will enable household needs to be met at all times.

3. Meet the Needs for Savings, Investments and Emergency Funds

Don't forget to allocate 20% of your income for the three components above. 10% for emergency funds, then another 10% for investment needs and also savings. Immediately set aside this need as soon as payday falls, so it doesn't get delayed or even eliminated.

4. Find Additional Income

Start looking for additional income for finance, so that more money can be saved. This can be done by looking for a side job or even running a side business. But make sure, this additional income-earning activity does not interfere with the main job.

5. Apply a Frugal Lifestyle

The way to manage finances with Cardas is to adopt a frugal lifestyle. Leave all consumptive habits and only waste money. Be wise in managing expenses, so that financial conditions do not experience problems.

Apply the Right Way to Manage Finances
Having a good and stable financial condition is everyone's wish. This is not easy to realize, especially if you have various wasteful habits in spending money. Start applying the right way of managing finances, so that financial conditions can get better in the future.

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