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5 Finance Tips of The Day - Everyone has the ability to try to get an established income, but there are not many people who can manage finances well. So no matter how much income you get, you still can't afford to make life and future better. Of course, you need to know how to manage finances well so that your efforts to collect money do not run out without knowing the allocation.

Not only managing personal finances, later you must be able to manage family finances, and even know how to manage the finances of the company where you work, or even the business you build well. This is the importance of everyone getting information on how to manage finances well.

In the following, we will mention how to manage finances well and even the best that you can try so that you can benefit in the future and enjoy all your hard work today with full responsibility.

1. Make Careful Financial Planning

From the very beginning you have income, then from then on you also need to make financial planning. Compiling financial management is the first strategy that many people miss because they think financial planning is only for business people or people with high incomes. Even financial planning can start when you are in school.

The first thing to understand about how to manage finances by making financial planning is about habits, because there is no exact formula for how to manage or manage finances itself that applies to everyone. Even in its application, you will definitely get its own challenges in disciplining yourself to plan finances. Make achievement targets about financial management every month and continue to evaluate until you fully understand and practice the financial plan.

The simplest thing about financial planning is to divide the account into several needs so that the money that has been set aside is clearly allocated. This will make you have your own financial post and divide it from monthly expenses.

2. Prepare an Emergency Fund

Setting up an emergency fund is one of the fairly simple ways to manage finances. You can get this method when you need a bailout from unpredictable fund needs in the future. With this emergency fund post, you will not take monthly expenses or even special savings. It's a good idea to take advantage of this method when you are going to make a personal financial budget.

Financial advisors advise to have an emergency fund at least 6 times the monthly necessities of life. This way of managing finances must also determine the lower limit of the emergency fund and plan to replenish it according to the target when you use it for impromptu matters. By keeping your emergency fund safe, it will prevent the possibility of you taking on debt in the future which will make it difficult for you to manage your finances again.

3. Be Careful with Credit Cards

Not everyone wants to have a credit card. If you are one of the people who prepare a credit card for personal expenses, then be careful about using it. How to manage finances by paying attention to the use of credit cards can make you avoid traps. The notion that credit cards are a lifesaver or as a bailout must be addressed from your mindset when you want to manage your finances.

It is common knowledge that credit card users have tempting offers from installment promos, payment discounts, or minimum purchases that can be paid in installments. But actually this method is not to save money, but to force you to be consumptive. The ease of transacting with a credit card should be used wisely because everyone is different in treating their various conveniences with consumptive pleasure that looks good at the beginning but you have payment dependents that make it difficult in the next month.

Use a credit card for essential payments, and not for consumptive transactions that shouldn't be necessary, especially since you are looking to apply how to manage and manage finances with a salary of 2 million or 4 million that you get every month. Avoid credit card payments with the emergency fund you prepared.

4. Investment Literacy

The way to manage personal and business finances that is quite popular today is to invest. There are many investment facilities that you can choose to save your current income and prepare for old age later.

With investment, you will indirectly have passive income that helps increase income from your existing monthly salary. Investment options are made when you feel that you have enough savings or can divide the portion to start preparing investment funds every month.

Did you know that insurance and investment are no less important, even complementing each other for optimal financial management?

5. Investment in Terms of Self-Development

Don't think if financial planning is only related to finances. The reason is, many successful and wealthy people can succeed because they also invest in terms of self-development. You can set aside your money to take seminar classes that discuss how to manage finances and investment potential.

By adding broad insight into financial management, you will not be careless in managing income that is not clearly allocated. Broad insights will shape your mindset to treat money and income wisely, so that money management plans are not only in wishful thinking or limited to planning on paper.

Changing the way you think about money can make managing it for personal finances very easy. It is not impossible that this method will help in managing and managing household finances with a partner so as not to be extravagant.

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