7 Tips for Managing Personal Money to Have Savings

Managing finances is indeed not an easy task. Many people face financial difficulties even when handling personal funds, yet it is very important to have savings for the future. This way, you will get used to managing finances well when you have a family.

Tips for managing personal money is a routine that can be done to manage income and expenses so that savings remain safe. Here are some simple things that can be practiced so that you can manage personal finances for future savings.

Know Your Expenses

The main thing to do is to know the amount of routine expenses for all needs. Calculate the main needs that are routine and recurring such as food, phone credit and internet quota, electricity, transportation, and so on.

Not only main expenses, you may also have needs to pay for newspaper subscriptions or entertainment streaming services. The details of these costs must be known and calculated clearly each time.

Allocate Your Income

From the income you receive, get used to separating expense items according to the needs that have been detailed. This calculation usually needs to be separated not only for short-term needs but also for long-term needs such as retirement savings of 10 – 15%.

Create Financial Records

Even after making a financial allocation, you may still often use the funds that have been allocated for unexpected things. Therefore, you need to create detailed financial records.

Create expense categories to evaluate every week or every month. You can download a free app for this. This way, income allocation will be more planned.

Prioritize Paying Bills

Every time you receive your salary, you probably feel suddenly rich. Yes, everyone deserves to enjoy it. However, you should prioritize paying bills before splurging. This will help you control the allocation of money that remains after each payday. Don't spend it all right away!

Free Yourself from Debt

Dealing with debt payments can be troublesome, but the convenience of transactions with credit cards can be tempting. However, you should only have one credit card for truly urgent needs. If you're lucky, you might be able to take advantage of discounts and lounges from banking services.

Utilize Cashback

Now, it's time to start setting aside money. If your expenses are still tight, try to start looking for additional savings from cashback. Yes, it may seem simple, but the concept of little by little can eventually lead to big savings.

When you shop, try to always look for cashback vouchers. Usually, the value will be greater if you use an e-wallet. After shopping several times, you might be able to buy a quota from the cashback results. You can save the funds for the quota!

Start Small Investments

Hearing the word investment may seem difficult and requires a lot of money. Don't worry, it's not like that. You don't need to stress about learning stocks if you don't understand yet. The easiest investment can start with saving in mutual funds or gold.

The value of gold is also relatively stable over the long term, making it a good savings option. You can start by buying gold from as little as Rp10,000!

So, those are some things you can practice to secure your savings. Don't worry, savings don't have to accumulate quickly. Just start with a small amount first, and later you can feel more at ease securing your savings!

Author: Rizkita Darajat

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