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7 Personal Finance Tips for Beginner - Entering adulthood, we begin to be financially independent because we already have income. This means that you must be able to manage your personal finances well from now onwards. The size or size of income does not affect financial stability, it all depends on how we manage our finances.

Everyone has their own way of doing things, including managing personal finances. Tips for managing finances in the following article may be used as a reference for managing personal finances in a smart and effective way.

Personal Finance Tips for Beginner

1. Create Expense Details

One of the simple things you can do in managing your personal finances well is to record your expenses. The existence of a breakdown of expenses will help you find out the average of your expenses every month, making it easier for you to make salary allocations so that you are not wasteful.

2. Make a Salary Allocation

After you have recorded the average amount of expenses each month, the next step that can be done is to make a salary allocation. Salary allocation is very useful for you to use as a reference for managing personal finances every month. You can try the following simple salary allocation.

For example, your salary is $500, then the details of the allocation are as follows.
  • Needs, bills, and installments 65% 
  • 10% emergency fund 
  • 10% savings and investment 
  • Self reward 10% 
  • 10% alms

3. Pay Off Debts and Installments on Time

If you have dependents in the form of debts or installments, make sure to pay them on time so as not to be exposed to large fines and interest. Fines and more interest due to delays can be wasted expenses, you know. Paying installments on time can also keep your credit score good.

4. Avoid Consumptive Debt

Debt or consumptive installments are debts that are used to buy consumer goods. This means that the items used such as mobile phones, motorized vehicles, branded bags, and many more.

Monthly bills for consumptive goods can increase routine expenses, if they are not in accordance with the ability to pay them. Make sure the salary allocation for installments is no more than 30% of your salary,

5. Prepare an Emergency Fund

One of the things that should not be missed in managing personal finances every month is to set aside an emergency fund a.k.a. funds just in case.

We can never predict the future, including unexpected events of an emergency nature. With a special savings emergency fund, you can use it if you experience an urgent situation in the future.

6. Saving and Investing at the Beginning of the Month

Getting used to setting aside funds to save and invest at the beginning of the month after payday is a special trick so that the two of them are not just a discourse.

Saving at the beginning of the month indicates that the routine has entered into your financial planning for each payday. The habit of saving at the end of the month can make savings money used for unexpected needs or desires.

7. Start Investing

You must have a dream or goal in the future that you want to realize. One of the ways to realize the goal in the future is to prepare it with investment. If you are a beginner, you can try mutual fund and gold investment.

Besides not being complicated, the nominal investment is very affordable, starting from only $10. There are several things that you need to pay attention to before starting to invest, including:
  • Determining investment goals from the beginning
  • Determine the amount of targeted funds and the target time to achieve them
  • Know your risk profile
  • Choose a trusted investment application that is registered and supervised by the government.
  • Adjust the product selection to your investment period and risk profile
  • Invest regularly every month


There are various smart and effective ways to manage personal finances to keep your financial condition healthy. You can start by making regular financial records and making salary allocations every month. Also make it a habit to save and invest at the beginning of the month so that your efforts will not only become a discourse. 
In addition, to achieve financial goals in the future, you can achieve them by starting to invest.

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