As you get older, ideally attitudes and behavior should also be more mature in life, especially in the financial aspect. The reason is, it cannot be denied that the need continues to increase.
If you don’t balance it with a mature and responsible way of managing your finances, you might find it difficult to meet all the necessities of life. What kind of financial arrangements can be said to be able to signify self-maturity? Check the list below!
Have Expenditure Records and Financial Goals
Every month, you receive a salary. However, at the end of the month, you are confused about what the salary money is used for. That’s why you must have a financial budget.
Write down every expense you make, no matter how small it is. From here, you can find out what spending items are consuming the most funds. If indeed the expenditure item is not too crucial, you can also allocate it to other expenditure items.
In preparing a financial budget, make sure you set aside your salary for saving and investing. However, first determine the financial goals to be achieved so that you have definite targets. For example, in five years, you want to buy an apartment unit. You also do a calculation simulation, how much money you have to save per month to buy an apartment unit in five years.
Ready Emergency Fund
Why should an emergency fund be in how to manage finances? Given that life is full of uncertainties, you never know when an emergency situation will strike. For example, a work laptop suddenly breaks, home repairs, or a company lays off employees.
If this situation occurs, an emergency fund will cover your needs temporarily. Ideally, it is recommended that you set up an emergency fund of six times your monthly expenses.
Investment as a Pension Fund
Apart from emergency funds, it is also important to prepare a pension fund from now on. The earlier you prepare, the more money you can collect. There are many ways you can choose to set up a retirement fund.
Considering that pension funds are a long-term need, investments with a maturity of more than five years can be an option. Why not regular savings? Because ideally, investment is able to provide a relatively higher interest rate.
Have More Than One Savings
Even so, that doesn’t mean you can’t open conventional savings at a bank. After all, monthly salary is usually also transferred to a bank account, right? It’s just that, if you really want to have a savings account, separate it from the account for operational needs. For example, account A is used for shopping for daily and monthly needs, while account B is for deposit savings.
Insurance should also not forget to be involved in managing finances, one of which is health insurance. Indeed, no one wants to fall sick. However, in an uncertain situation, we should be on guard.
So, if you fall sick, health insurance will cover the cost of treatment, so you don’t need to be confused about finding funds anymore. In addition to health insurance, it is also recommended that you have life, property and vehicle insurance.
Credit Cards as Complementary Budget
Eliminate the notion that credit cards will only make you wasteful and increase debt. As long as it is used wisely, credit cards can actually make your life easier.
If you currently still have credit card debt, make it a priority to pay it off immediately. After that, rearrange the use of credit cards as a complement to the budget, for example, only to take advantage of promotions at certain merchants.
It’s time for you to become more mature in managing personal finances. That way, not only financial goals can be achieved, but also financial freedom. You can live life more calmly.