Each person has a degree of difficulty of different money management. It’s hard or easy, it depends on our willingness to be able to manage our money every day. When a person feels extremely high difficulty, need for increased expertise in money management. To do so, at least try the 8 ways to improve your skills in money management his own money.
8 ways to improve your skills in money management
To achieve success, let’s start from ourselves and our own behavior.
01. Learn to suppress spending money every day
If seen from the extent of someone’s life, everyone has a different standard of living is different. When poor people feel the money could solve all financial problems, but even rich people money isn’t the way out from any of their problems. That is why most of the rich people have expertise manage the money bad enough. While the people are poor and medium trying to learn to improve their expertise in putting pressure on expenditure and the rest could be saved.
expertise in putting pressure on expenditure each day actually is very easy. It depends on your own volition. While these skills can be mastered, the money you set aside can be tubes and can be used for the purpose of your in the future.
Pressing spending each day is part of self-discipline, refrain from greed towards money. Money can indeed buy everything, but keep in mind how much money you have, if money successfully influencing our minds, money will also gradually depleted.
This is not a war between the people with the money. But more to the war between people with his mind alone. As the basis of our thinking, we will be left behind if we lost the discipline in terms of spending. And who are those who are cutting-edge discipline set their spending each day?
2. Buy things we deem necessary according to needs
The emergence of a new trend creating a desire to buy the new stuff is getting higher. Just as more women’s clothing of the day was further changed. Whew.. There are clothes with the latest style. It feels like to buy it right? Without us thinking about if the wardrobe is full with clothes that once we buy. This kind of lifestyle is not a lifestyle that is meticulous in regulating finance.
Actually if indeed we meticulously manage our money, we will not easily be charmed and fall asleep by the influence of trends that can only make us wasteful and not pay attention to our needs.
People usually have dreams and goals. Therefore many people who try to realize a dream. Having a dream is not actually wrong. Because your dreams can be a motivation in work and make a lot of money for a variety of needs. Please be aware that not all dreams are based on needs. It could just be the dream is a nightmare for our family’s economy.
If we are an expert on the economy, surely we have records of our needs within a short or a long period of time. This entry contains a variety of our needs such as food, beverages, or items are indeed felt necessary. The presence of this entry, of course, we will know how much money will we spend the next day.
3. Start tracking money already issued
When a water pipe leak, of course, we will be looking for the source of the leak. Same as manage money out too much. We can find out where the excessive spending and begin to stop it, let the spending does not swell.
If we have time to spare, take your time checking spending every dollar or every penny we have issued such as:
- Consumption of Biscuits in a month for $ $10
- Buy bread and milk for $50
- Lease payment of electricity and water and others
Everyone usually has reasons why they buy or pay for things above. Actually, almost 90% of people do that. But if indeed the income we do not comply with our expenditure, we ought to start thinking how to reduce our expenses each month.
Such spending is a cost to rent a place to live, it is indeed difficult to press. If it cannot, it does not mean we have to despair. Start keeping track of other expenses, and start reducing spending on it. Try our search, such as consuming snacks or smoking if we smoke. The consumption of liquor and others. All can be pressed if we want it .
Noted indeed boring. But this is one of the ways improve your skills in money management. Do this every month and reduce spending little by little. At least 5% of the expenditure we can tap. Certainly, we will benefit from this.
4. Prepare the future Savings
We’ll never know when we need the money, and when we need to start setting up saving account for that. Sudden needs that are spur of the moment could have happened to us. For example when we are sick, accident at work, etc. There are two things you can do in setting up the sudden money.
- Saving on conventional bank
- Sign up on the company’s health insurance or life insurance
Financial experts always advise clients to set aside a portion of their earnings every month and keep on saving. So if we need large funds in a short time, we can take those funds in savings. The purposes of such large funds with the cost of treatment in hospital, or sudden unexpected events.
Insurance is another form of future savings for us. All types of insurance are indeed promising insurance claims in accordance with the type of insurance. Think of it as health insurance. We can claim insurance when we were sick and insurance will cover all the necessary costs when we are treated in the hospital.
5. Calculation of personal/family expenses each month
Every private or family must have expenses every month. Expenditure that we should calculate and adjust with your family’s income. why is this expenditure necessary in the calculation? Because that’s for sure and we have to pay every month. What is it? Try to think back and remember. Whatever routine did we pay every month? Already imagined?. A bit of shade for you, generally people usually pay the Bills, electricity, water, Gas, insurance, and more.
All expenditures should be routine in the calculation then we’ll know how big our spending. And how much money is left from that routine spending? The rest of the routine spending then we set aside a portion of savings. As described above.
Once set aside for saving, separate in some categories such as expenses including food, child care, children’s school fees, loan payments, and the need for a vacation. The most important and necessary in priority is the need to eat, school children, then think about the interests of others.
“Doing a calculation routine expenditure on private or family is very necessary if you want to manage finances well. In addition, a great many positive impacts if we do this with success. “
Because this action is associated with money, then it doesn’t hurt you to try it.
6. changing the everyday habits
Should everyone have the rest of the money at the end of the month? But in fact, the excessive needs to make a lot of people would run out of money in mid-month monthly. Even the worse recently received a monthly salary, the next is already thinning. That is why many people begin thinking to find additional income by working at home without capital and even work at your leisure.
From the fact above, if we were smart to manage our finances, we certainly do not need to seek additional income struggled out there. Unless you dream so millionaires or even billionaires.
“God created the Division traveled to work in accordance with its ability. Regardless of the outcome, surely enough to live “
When a person begins to feel their needs are not in accordance with the finance, then start thinking to save and pressing expenses. If you spend $50 in a month to buy a burger, then if your finances thinning, surely you will reduce the consumption of burgers. What really like that? This is a way of changing habits that often you do.
For those of you who use a credit card, have a credit card can make it easier, but can also be a nightmare for us. Credit cards can make us inclined to be consumerist. In addition, the use of credit cards will not be controlled. Because unknowingly we have used credit cards too much.
We recommend that you tighten the use of credit cards. How to tighten the use of credit cards by restricting a transaction using a credit card. Use cash for small transactions. By limiting the use of credit cards, credit card debt will be less and spend each month to pay their credit card bills on the wane.
7. Using a credit card wisely
Continuing the discussion about credit cards, a credit card is a facility in performing loans easily and quickly. A credit card is being very helpful because we can borrow in accordance with the limit of the credit card we have. In addition credit card could help us when we are in a pinch and when we run out of money in the wallet.
Seen in terms of the poor, the use of credit cards can be a debt that we have to pay every month. For example, if we often use credit cards and has a debt amounting to $20,000 with an interest rate of 18%, and then you pay a minimum of 2%, chances are you take 80 years to pay it off.
In order that the above is not the case, you should take a wise thought in using a credit card. A thought which perspective is absolutely necessary. Customize your loan needs with type, interest rates, and a period of repayment of credit card debt. If you need large loans, use credit cards with low-interest rates and long repayment period .
“Paying services such as electronic repair tool repair, paying petrol, pay the rent a toll to use a credit card if needed should use cash. If you must use a credit card, use a credit card to pay off period is quite short “
8. Pay Bills and debts in advance each month
Still remember the Bill or your debt each month? What still remember to pay for it? Or you want the debt and bills were piling up and make you increasingly stress.?
Debt and bills will not be able to escape from our lives every day. The balance between rights and obligations are intimately linked. If you use electricity, the water then you are obligated to pay the Bill each month. So also for credit card users. Use the same credit card to borrow money. When we borrow money, we are obliged to pay it. Is it like that?
Backtalk about spending each month, you have to pay the Bills and debts in advance. Why have to pay debts and bills first? The answer is quite simple. If the debt is not paid, the exorbitant interest and fines will hit us. Spending would be swelled. To that end, pay bills or debts every month on time .
Take advantage of the convenience of modern life to pay the debt. Now every Bill can be paid through a bank or cut off directly from your savings account. Or if it cuts automatically by the bank are not allowed, you will be a bit of a hassle to go to the atm or opening internet banking sites each month.