Friday 15 April 2022
One's financial condition is one of the things that can affect one's life. If the financial condition is good, of course, daily life also goes well. On the other hand, if the financial condition is bad, of course it will also have an effect on daily life, especially in fulfilling our lives.
Unfortunately there are still many people who do not care about their financial condition and seem indifferent. Even though managing financial conditions is very important, and because there is still minimal information about the importance of managing finances.
On this occasion we will discuss the reasons for the importance of managing finances, consider some of the reasons below:
1. Help identify financial errors
By making a financial plan, it can also really help you to identify the financial mistakes you have made so far. You will definitely realize after making it, that so far we have made a lot of mistakes, for example, a wasteful lifestyle because we often hang out every day or spend our salary to buy things that are not really useful. If you are aware of it then you can allocate it to more important needs.
2. Realizing our life goals
Everyone has dreams or goals in life. For example, you want to buy a car or house using your hard-earned money. Well, if you manage your finances from now on then you can make that dream come true.
3. Can have an emergency fund and be on standby
We may not be able to predict what will happen in the future, we don't know what we will need in the future, including the final. Therefore, it is better if we have preparations so that if we need urgent things in the future then we are not confused anymore.
4. Have a safe and comfortable retirement period
Of course, everyone wants a comfortable old age. Because it is very important to manage finances early on so that you can save money or save for your retirement. If you can manage your finances well you can also prepare your money to invest or other things that can be passive income for you.
5. Increase cash flow
By managing your finances, it can also help you monitor how your finances are, you can also monitor your income and what your expenses are for a month or even a year. This can really help you spend money wisely and can also increase your potential for saving.
6. Can find out what unimportant things have been issued so far
One of the mistakes people often make in their finances is that they never record and detail what they earn and what they spend. When we get a salary, we usually only pay directly for dependents such as debt or credit, use it to meet needs, and only the rest is for savings. But if you can manage your finances early on, you can know how much income and income you have.
7. Can make savings
When we start learning financial planning or managing finances, then we know what we earn and what we spend every month. Maybe it's our first time making a financial planner, you will be surprised because you see a lot of things you spend to buy some things that you don't really need. By managing your finances well, you can make good savings too.
8.It is possible to make investments
If you want to invest, of course you must have money to invest capital. If you don't manage your finances well, then you will likely find it difficult to have money that will be used as investment capital later.
Therefore, if you want to invest in the future, you have to manage your finances from now on.
9. Get used to living regularly
We already know that making money is much more difficult than spending it. Therefore, if you manage your finances from now on, then you can know what things you need and what are not important.
That way you get used to holding back buying things you don't need because you've managed your finances well. You can also manage your income so far, so that expenses can also be more planned.
So that's the important reason why we have to manage our finances from an early age. It also aims to live your life in old age so that you will not be burdened by our retired old age.
Lead image from unsplash
Thank you for reading.
