HOW TO MANAGE FINANCES PROPERLY AND CORRECTLY

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Managing finances has always been one of the most sought after pieces of information on the internet. How could I not, there are many people out there who are overwhelmed with managing their finances. As a result, financial conditions are often unstable and even face serious problems.

Basically everyone has their own way of managing their finances where various policies are implemented. However, various bad habits are often the cause of financial problems. If the financial situation does not improve, it is possible that over time the financial situation will worsen.

Of course, this financing must be adjusted to income and also the various expenses included in it. Managing household finances is certainly different from managing personal finances. However, if you are used to managing your own finances well, then you will definitely understand how to manage household finances so that they are not wasted after marriage.

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How to manage finances to balance

Get in the habit of managing your finances with accurate and realistic calculations that compare income with expenses. With this type of personal financial management, all needs can be fulfilled optimally and various financial goals can be achieved on target.

The same goes for management, which is more dependent on the economy itself. It is important to manage household finances so that they are not wasteful so that all the needs of the community in the family can be met properly, including education and other needs.

Here are some ways you can manage your finances smartly and wisely:

1. SET A FINANCIAL BUDGET

The first step to managing your finances is to create a financial plan. Regardless of what income you receive, it is important to always distribute it correctly. Managing your household finances is much easier when you have a budget right from the start.

Plan what expenses will be incurred in the household so that all needs are met. Don't forget to make savings and investment entries, both of which are mandatory parts of a financial plan. Arrange all expenditures in a balanced and realistic manner so that they are easy to implement in practice.

2. PRIORITIZE NEEDS

Still related to the points above, always remember to prioritize needs over other desires. It's important to understand these needs and wants differences from the start so you can be smarter with your money.

Managing your personal and household finances is much easier when you have a good idea of what really needs to be done in the first place. Keep precise monthly expense records and track them properly to keep expenses under control.

3. DON'T FORGET TO SAVE

Whatever your monthly income, remember to set aside a certain amount in a savings position. It is best to keep 10-20% of your income each month in a special savings account. That way, financial conditions improve and there are some funds that can be used for needs other than basic monthly needs.

4. MAKE AN INVESTMENT

Like a savings account, an investment account is also needed in finance. Dedicate at least 10-20% of your income to this need. Investing is a financial activity that can later bring several financial benefits.

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5. SET UP AN EMERGENCY FUND

How to manage household finances properly, of course, is not complete without an emergency fund. An emergency fund is a number of funds that can be used at any time, if financial conditions are in an emergency. Or, to deal with various emergency conditions that cannot be overcome by using monthly money.

Fulfill the needs of this emergency fund using good, allocate a number of funds based on income each month. Ideally, the amount of an emergency fund is at least 6x monthly expenses for those who are single, or 12x monthly expenses for those who already have dependents. Save the emergency fund in a separate (specific) account, so that it is not mixed with other funds or even used.

6. PREPARE A PENSION FUND

How to manage direct finances that are intelligent, of course, must be sustainable. Don't forget to set up a retirement fund from now on. Calculate how much you need for post-employment funds & start repaying regularly every month. Put these funds into a specific account first.

7. PERFORM PERIODIC FINANCIAL EVALUATIONS

If all of the financial management methods above have been carried out on finances, then don't forget this one. Carry out a planned assessment of finances, see which parts need improvement. This will allow for better ways to manage finances in the future.

Have fun managing your finances smarter!