Work and have a salary, it has become a natural thing. But what if our salaries are only limited to going in and out of accounts, with nothing left for each month. There must be some of us who have been or are currently caught in this situation. Even though, regardless of anything, having savings is mandatory. Because we never know what happened next.
Why is there one month's salary left at all? Don't argue that our salary is insufficient, or that we need too much. But try to compare it with other people who have the same income as us but can still set aside for saving.
Yes .. the solution is ...
Money Management
There are many opinions about how good financial management is, but the basic rule that we can practice is 50/30/20, for monthly financial arrangements, especially in the expenditure system. Referring to the book entitled All Your Worth: The Ultimate Lifetime Money Plan, by US Senator Elizabeth Warren, it is explained that in managing income, 50% of income is allocated for needs, 30% for wants and 20% for savings.
•° In the needs section of 50% refers to "mandatory" or routine expenses such as electricity bills, water bills, insurance, mortgage or house rent, insurance, basic necessities, etc.
•° The 30% part, represents expenses for "wants" in quotes. This means that it is not for spending fun or entertainment that can still be arranged based on its interests, considering many things in determining whether we really need that desire.
•° 20% of course for saving, both in term savings and invested in many instruments such as cryptocurrencies, stocks, mutual funds, precious metals, etc. This savings allocation can also be used as an allocation of needs to prepare emergency funds.
This 50/30/20 financial management method does not have to apply to everything, sometimes basic needs become more important and funds are not sufficient to be allocated into savings or desire budgets. Each person's financial condition varies depending on the source of income and the level of need. Like the financial phase of someone who has a family and their income is only enough to meet daily basic needs and shelter. But that doesn't mean that we don't have any savings or investments, but every month we waste a lot of money on unnecessary needs or entertainment, traveling, go to restaurants, etc.
The essence of financial management is to meet the needs according to the financial phase as well as the basic needs that we live with. If we can fulfill the 50/30/20 method, never procrastinate to start saving or investing. All in accordance with the level of risk that we can accept. The essence of investing is to get long-term profits, there is no investment instrument that is arguably the best because it must be rushed with the financial condition of each person. To get a profit from an investment, the first thing is to look at the desired profit target. Looking for information on the price of precious metals, capital market investment, cryptocurrency, property, land or other types of investment that according with our budget.[]
