Managing your finances is one thing you have to manage in this life. Don’t wait for your finances to be established before you want to manage your finances. Financial management must be trained from an early age so that you can get used to it.
From discussions with young people that #KejarMimpi has met in several areas, many of them tend to live in the current or hard-line organizers of You Only Live Once’s concept of life. They don’t worry about tomorrow.
The principle is “How about tomorrow, later?” Is that principle wrong? It depends on your thinking and perspective. Are the principles wise? Of course not. Because becoming an adult involves thinking about your future well-being, one of which is managing your finances.
Saving or managing your finances does not mean that you stop having fun. Managing your finances means that you are wise in managing your expenses and do not force you to buy it when you do not need it or you do not have it.
Discard the idea that saving is difficult. There are several ways to manage finances that are suitable for young people without disturbing today’s lifestyle. what happened? let’s see.
1. Save By Separating Your Finances
From the monthly income you receive, you have to split it into two accounts. A special account for your daily operating expenses and a special B account for savings.
That way, your savings will be safe and will not mix with your daily expenses. Do not use the debit card feature to create an account for savings purposes so that you do not want to spend money on it.
2. Make a Budget Allocation
This method adheres to the principle of “not enough, enough”. Every month, you need to allocate a predetermined budget cost to make an operating budget.
How much does it cost to eat and drink outside the house, socialize with friends, and buy books? And other monthly expenses. Do not spend more than the specified budget cost. This pattern is good for learning discipline for spending.
3. Create Long Term Goals
Financial savings and management will be more fun if you have the goals you pursue. For example, suppose you own a house or want to go on a pilgrimage to Mecca at an early age.
You can now start planning a financial budget for your home savings or go on a pilgrimage to Mecca. By setting these financial goals, you can automatically save money and pay attention to your spending.
4. Set Up Retirement Savings
You are still young, but you have to get rid of the idea that you can set up old-age savings and retirement funds later when you get older. Like the principle of chasing dreams, the sooner you start, the faster you will get results.
While you are still young, your daily necessities increase with age, so focus your finances on long-term savings. You have to get married, have children, spend money on housing and education needs, and so on.
Also, as you get older, your productivity decreases. If you do not prepare for retirement savings when you are young, you may be burdened with old age because you are not well prepared for old age.
5. Start Investing
There are four methods above, but do you still have money to manage? There is nothing wrong with learning to invest because it is important to prepare for future planned and unplanned needs, such as education funds, health funds, and pension funds.
In addition to preparing funds for future needs. Financial planning serves as a guide for the future. To quote Ben Bernanke, an American economist.