7 Tips for Managing Finances So Your Savings Continue to Increase

7 Tips for Managing Finances So Your Savings Continue to Increase

Managing finances is not an easy thing. Even though we have received a salary or income, sometimes it is still difficult to make the money we have continue to grow. Especially if we get the same income but our expenses get bigger every month.

Our bad habit is that we tend to waste money at the beginning and save at the end. If it continues like that, maybe there will be no chance for us to save. To avoid these things, we need planning in managing finances. Here are tips for managing your finances so that your savings continue to grow.

1. Record income and expenses

Often we don’t care about our receipt and expenditure records. Sometimes even at the end of the month we are confused about where our money “goes”. By recording income and expenses, we can more easily track our monthly finances. This can be done with simple bookkeeping in small notes. Currently, there are many applications on devices that can accommodate and make financial recording easier.

Record your income for one month, then create expense items. Make a list of expenses and targets for each expense item regularly every month. That way we can see posts that exceed the target and can be an alarm for us when spending money. This will make managing our finances easier.

2. Pay attention to the little things

Don’t take the little things for granted. We usually underestimate the small expenses we make, such as spending on coffee every morning, or an afternoon snack for example. Most people are very careful and tend to think carefully about buying expensive items, but are less controlled in spending on small things. In fact, maybe if combined in one month the amount spent on these small things is worth more than the expensive items. This is what sometimes makes our finances out of control. So be more careful in spending, especially for small things.

3. Don’t shop for prestige

Currently branded goods are very popular. Usually we buy it to fulfill our prestige and follow our lifestyle. It would be better if we could use it to increase our savings and buy things we really need. Not because it’s trending, let alone because of prestige. We need to realize that the development of trends and prestige will never end if we continue to follow them.

4. Prioritize needs

Make a priority list of needs starting from the most important to the less important. Start from those that are very urgent to those that can still be postponed to be fulfilled. By creating a priority scale we can more easily manage expenses. Apart from that, we can also learn to be more economical and organized.

5. Set future targets

One effective way to manage finances is to set targets for the future. For example, when you are 30 you aim to have your own vehicle, when you are 35 you have your own house, and so on. By setting a target, it means we are ready to start and carry it out. Don’t let the target just become a discourse. By having a target we are also required to be able to make plans so that the target can be achieved.

6. Be disciplined in saving

Many people think that saving means saving the money left at the end of the month. This was a mistake. If you want the money in your savings to increase quickly, make a savings target and immediately put the money aside at the beginning of the month. If necessary, create your own savings account that is different from the account you usually use every day.

7.┬áDon’t be afraid to invest

Investing does have a lot of risks. However, from this large risk there is also the potential for large profits if done correctly. In order to invest well, we also have to study and practice to be able to make the right strategy in investing. The first thing you can do is find out what type of investment is suitable. Next, look for as much information as possible about the investment you choose according to your financial situation. The most important thing is not to interfere with other expense items.

Those are some tips so that your savings continue to grow. Hopefully the tips above can make you better at managing your finances. Good luck!

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