Manage finances well

Often hear the words "Money comes just to go", although maybe those words are just material to make us laugh, but as we grow older, it seems like those words become real. Especially if we don't know where our money is being used, and suddenly it has run out, so to avoid things like that, it would be better if we manage money well, a small amount is still money.

In managing money, the first and most important thing we must identify is our financial condition, which means that before starting to manage money properly, we must know all the money we have. Identification of money like this aims to check where we are financially, for example, such as the condition of savings, assets, debt, and also others, so we have to know how much savings we have and where the income comes from, the assets we have today and up to now debt we have.

By recognizing these three things, we have an idea of ​​what our finances are like, whether they are good or not.

After we finish identifying, we can proceed with making a priority scale for finances, a priority scale like this we can start by first identifying what needs we need each month, every person's needs are different, if we recognize that it will be better easy to help set our priorities.

For example, for everyone, monthly shopping is the most important thing, but for some people a data package or Wifi is the most important thing, at this stage we can learn to compromise with ourselves about priorities in everyday life.

For the next step, try to track money spending and do periodic reviews, this step will make us understand more about the money spending habits that have been done, and think about what things we can develop from spending money habits so that they can be even better.

For example, after we track and review it makes us realize that we often buy food outside, maybe it's time to allocate spending to buy food outside of this, or it turns out that the funds we spend on paying for the internet are not as big as two months ago, this can make managing expenses return.

Finally, make savings for the long term, we can't deny that all our money will go into savings, of course there will be a portion of our money that will be spent on several things, besides saving for no reason will make us vulnerable to confusion and much more vulnerable which we will eventually use.

You see, if we don't have a goal, we think we have a lot of money and we have a lot of wants, and end up buying those wants, even though those wants are not necessarily needs.

For example, if we save long-term to buy a house or for an emergency fund, if that is the goal, having a goal will help us to be more consistent in setting aside some of our income to save and we may think more about how much we will save.