Tips for Managing Finances for Mediocre Salaries
Every payday date, you feel happy! In fact, some of us immediately pay for the items that are on the wishlist in the e-commerce cart? Or the money we have prepared for the holidays or buy gifts as self-rewards?
All these things you can do, as long as it is within reasonable limits. Do not let it be the beginning of the week, your salary is almost exhausted. Therefore, so that your salary remains for up to one month of course you need to know how to manage your salary.
Know that the main purpose of managing money is for your good in the present, tomorrow and the future. So that your finances are guaranteed for 1 month, even more until future preparations, you must know how to manage your salary.
Avoid bad financial habits such as excessive consumptive properties that will have an impact on accumulated debt, financial stress and many consumptive installments.
Did you know that managing money is easy as long as you have intentions and determination. Start first in simple ways, such as always prioritizing the cost of living needs over lifestyle.
Remember, prioritize in the beginning to pay monthly bills, insurance and emergency fund savings, investments, and do not forget to donate. Do not forget to keep your debt in order to be in a healthy ratio of finances, which is a maximum of 30% of your salary.
Tips for Successful Saving and Investing
At the beginning of payday, always prioritize saving and investing. There is no exact amount for the amount of savings and investments. You can start by periodically setting aside 10%-20% of the total salary for investment.
Pay attention to these things so that you can successfully save and invest every month:
- Choose the type of autodebet savings, so you can automatically save regularly. You should separate savings accounts with salary accounts and accounts for financial or daily transactions, so that your savings money does not run out due to consumptive spending.
- Separate savings money for specific financial purposes (e.g. for holiday funds) with emergency savings money! For emergency funds, there is no benchmark for how much to save each month. But, of course, more, better.
- The best amount of emergency funds is 3-6 months of regular expenses for those of you who are single or unmarried. While for those of you who have a family (have more than 2 children) prepare about 6-12 months of expenses. For example, you are married and have 3 children who pay 1000 USD per month. Monthly expenses of 700 USD per month, so to achieve the best amount of emergency funds, you must collect 4200 to 8400 USD.
- Choose an investment product that you understand. Learn the risks and benefits of these investment instruments. First determine your investment goals, whether for the short, medium or long term. After that, start by looking for information about the investment product and start investing.