Confused about where to start managing your finances? Let’s check out the tips!

There are many things that we want to do when we have enough income for ourselves. In order for the goal to be achieved, of course, good financial management is the right way for smart people who are still having trouble managing finances.

Here are tips that you can try

1. Distinguish wants and needs
   The first step in managing finances is that we distinguish between wants and needs if from these two things we cannot distinguish, it will be difficult to manage finances because if all the things we want must be had but with limited income and no benefits later it will only make our finances more chaotic, choose according to your abilities and needs so you don’t regret it later.
   
2. Budgeting method 40:10:10:30:10
   This method is quite helpful for singles who may have debt / installment dependents this method can also make finances more detailed
   40% for daily needs
   10% to pay off installments or loans
   10% for insurance payments or other premiums
   30% for emergency funds and investments
   10% for charity, charity or donation
   
3. Make a personal financial arrangement or report
   If we can already apply the first and second points, then try to make a personal financial report so that we can see how far we are trying to manage our finances.
   
4. Wise use of paylater and credit cards
   An important point of managing finances is that we need to be wise if we have these two facilities, we can be tempted because we can buy desires even though the budget is mediocre, so be smart people to manage finances and do not make desires as desires that must be fulfilled.
   
5. Make a whislist for some time ahead
   You work, there must be a desire to have a dream property or vehicle as proof that it is the result of the hard work that you do, for example, in the next 3 years the car you have will be paid off or bought in cash without installments, that dream will not hurt if it is realized with patience and careful financial planning.

So how are smart people? Have you planned these points before or just started there is nothing wrong even though you are just starting all decisions will feel good if we go through with patience and keep thinking ahead for a better future.