Hi TheNewbies! You must already know that financial management is a very important thing to be applied in everyday life.
Without good financial management, of course, our financial flow can become chaotic and even then it can disrupt the agenda that we have planned now to the future.
But in reality, the habit of managing finances is not an easy thing, you know . What's more, for millennials like us.
The difficulty in managing finances for the millennial generation is generally due to the lack of financial education, not thinking too much about the importance of financial goals, so they tend to prioritize lifestyle.
For example, if there is an imbalance between expenditure and income. You can adjust it to your convenience when taking notes, as can be done in books, applications, or digital notes.
For example, the income you receive in May, you don't use it in May either. Use it for the next month, namely June.
By setting these financial posts, your money will move with their respective portions. So, it can minimize the chaos of your financial flow.
Without good financial management, of course, our financial flow can become chaotic and even then it can disrupt the agenda that we have planned now to the future.
But in reality, the habit of managing finances is not an easy thing, you know . What's more, for millennials like us.
The difficulty in managing finances for the millennial generation is generally due to the lack of financial education, not thinking too much about the importance of financial goals, so they tend to prioritize lifestyle.
Managing Finances for Millennials, Is It Important?
In fact, financial preparation is still a very crucial thing you know for the future, Therefore, if we can prepare for it from now on and then can enjoy maximum results, why not?
Eitss, but don't worry, it's never too late to change. Therefore, let's start from now on, we learn to be financially smart millennials.
One of them, by managing our finances as well as possible. Especially for TheNewbies, there are some powerful tips that can be applied in carrying out your financial management.
Listen until it's finished!
Smart Tips for Managing Millennials' Finances
1. Record and Recap All Expenses and Income
This first tip can be said to be quite basic in managing finances. If we do not record every expense and income, it will be difficult for us to know our financial health.
For example, if there is an imbalance between expenditure and income. You can adjust it to your convenience when taking notes, as can be done in books, applications, or digital notes.
Then after taking notes, make sure you also recap and control the parts to the total income and income each month. So, you can also monitor whether there are excessive less important expenses that must be reduced and so on. That way, your financial flow will become more organized and maintained by implementing this.
Although it sounds quite easy, in fact this first tip requires high accuracy, you know, TheNewbies. Therefore, don't be bored to do it.
2. Do Not Directly Use Earned Income
The second tip is that as much as possible you should not immediately use the income received at that time. However, you collect it first and use it in the following month according to the portion of the financial division which will be explained in more detail in the third tip.
For example, the income you receive in May, you don't use it in May either. Use it for the next month, namely June.
Why is it like that? This will make your financial flow more regular, stable, and controlled according to each part.
So, the money you earn can run more productively and not run out in the wrong place and time. Oh yes, these tips can not only be done by millennials who already have their own salary, you know.
However, this can also be done by millennials who have not yet entered the world of work and have not earned independent income. For example, students by managing the pocket money that has been given by their parents.
3. Make Monthly Financial Posts
The third tip is to make monthly financial posts. The headings here mean the parts.
The trick is to determine our monthly spending limits in every aspect. For example, we divide it as follows: 50 percent of the necessities of life, 30 percent of savings or investments, 10 percent of social funds, and the remaining 10 percent for entertainment and desires.
By setting these financial posts, your money will move with their respective portions. So, it can minimize the chaos of your financial flow.
In addition, related to these financial items, while collecting monthly income as explained in the second tip, you also need to record approximately what needs or expenses that must be met in financial posts in the following month. That way, you can customize and manage it in more detail.
4. Don't Stick to Lifestyle and Avoid Debt
If you want to have a healthy flow in managing finances, then you should not get hung up on your lifestyle. As a millennial generation, of course, there are certainly many temptations in your daily life that can improve your lifestyle, such as hanging out, shopping , and following trends that are always changing.
lifestyle that you really have to watch out for and reduce to be able to maximize your finances.
In fact, if our income becomes larger, it is better if the lifestyle we live does not increase as well. Instead, use it for things that are more productive, not consumptive. Don't ever instill the mindset "while you're still young and live only once," then you do everything without calculation, TheNewbies
In addition to lifestyle, debt also needs to be avoided you know , especially debt that is only to fulfill consumptive desires. Oh yeah, in this case it's not just debt that goes directly through cash, TheNewbies.
It also includes buying goods by taking advantage of the pay later feature. As much as possible you buy an item because there is indeed a part of the money and pay it off immediately.
Besides being able to accumulate, this debt will also be able to form habits that will later have an impact on your financial health, you know . Don't forget to avoid debt.
5. Start Collecting Emergency Funds, Invest and Have Fun at the End
In addition to the four previous tips, raising an emergency fund and investing is also important.
Having an emergency fund makes you better prepared to deal with urgent and unexpected situations. So, it will not interfere with other financial needs.
Investment is also important by making your money work too. You can choose what investment instrument suits risk profile and also adjust it to your investment goals. Oh yes, don't forget to study before investing.
Then lastly, prioritize your needs and prepare for your future. Get rid of wasteful habits and extravagance for the sake of a more mature future.
Use your money for fun if there is indeed money left over from the financial posts that have been set. Not the other way around, which uses money for fun first.
So, those are some tips that can be applied in managing your finances, TheNewbies. Starting a new habit is not easy and takes a long process.
However, the most important thing is consistency. Believe that what you are trying to do now will definitely pay off in the future. Always be passionate about managing finances, TheNewbies!
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