Managing Personal Finances – Have you ever run out of money before your payday? Are your expenses greater than your income? Or have you even dredged your savings to cover your expenses? If you have, let's start learning how to manage personal finances so they don't "boncos”!
Managing personal finances may seem simple, but impact the big one. Even so, not everyone can manage their personal finances well. Through this article, the Whiz Financial Application will help all of you to manage your personal finances through the following tips.
Also Read: Tips to Prevent Impulsive Buying in 30 Days
How to Manage Personal Finance?
Recording Expenses
Managing personal finances can be started by recording expenses. Although it seems simple, this method is quite effective, considering that people will tend to be more wasteful if they don't know how much money they have spent in a certain time.
One possible way to do this is to save receipt shopping or eating you to be able to calculate how much you spend with more precision. Next, you can start rearranging your expenses based on the remaining money you have until you get paid again.
Making a Budget
Managing finances will not be effective without a budget. Some experts define 50-30-20 as the ideal ratio to budget your income. The details are 50% for primary needs such as rent, accommodation, meals, etc.; followed by 30% for installments and entertainment; then closed with 20% for savings, emergency funds, and investments.
The thing to remember is that the ratio is not a fixed ratio, you can set your own ratio according to your individual needs. Furthermore, you can also create a separate account to separate savings and expenses that will be used daily.
Manage expenses wisely
Managing expenses wisely is the most effective way to manage personal finances. Sometimes we can't tell what is a need and what is a want. This is also supported by an impulsive attitude that makes you no longer think twice about paying for 70% discounted items that you don't necessarily use.
It's a good idea to always ask some of these questions before buying something like is the item needed? How to share pay-per-use or how much do you have to pay each time you use the item you want to buy? What value will you get after buying the item? That way our impulsive soul can be muffled.
Start investing!
As discussed earlier, managing personal finances is incomplete if you don't have investments. Therefore, allocate your income for investment.
Investments are not always stocks or something bigger like gold or property. You can also invest by paying for language classes or other online classes according to your interests such as classes public speaking, content creators, or finished photography.
Calculate expenses due to taxes and credit interest
Often people forget to manage personal finances, we also need to calculate expenses due to taxes and credit interest. Every tax you incur to pay for your food, purchases of goods through marketplaces, or flowers from paylater it does seem small. However, if not calculated carefully, these taxes and interest can swell, without realizing that you have finally lost most of your salary because of this.
For that, you should not underestimate and have to start calculating your taxes and interest on your installments!
Also Read: Allowance for High School Children and How to Determine It
Do you know? From now on you can easily manage your personal finances through the features Spending Overview & Limit offered by the Whiz Financial App. you know! This feature will help you organize, record, and limit your spending. So, bye-bye run out of money in the middle of the month!
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