The Covid-19 pandemic has not only hit the world of health but also the economy. Many countries are experiencing recessions due to this Coronavirus. Covid-19 is also a factor that causes many job losses.
Among them, many were not prepared for this situation. Especially those who are less literate in financial planning. When they lose their jobs, they don’t have any spare income.
This event can be an important lesson for you. This kind of situation could happen again under different conditions. For that, it is important for you to manage finances from now on. The goal is that you can be better prepared in various conditions. Without further ado, here are seven financial management tips that you can apply from now on.
Have an Investment
Investments are assets. If you set aside some of your income for investment needs, then at least you can “secure” your finances a little in the future.
Investments will help you when you are not working anymore. Even if you have retirement money later, you shouldn’t be too relied on. Have an investment now. Investments can be a safety “net” when you are no longer working or when the economic situation worsens. For example, when the Covid-19 pandemic hit, many people did not have investment assets. The effect is, many people are not ready when they lose their jobs.
The form of the investment itself can be anything. Can adjust to expenses. The easiest example of investing is investing in gold. Apart from gold, investments can be in the form of stocks, property, deposits, and even insurance, especially the types of health insurance and life insurance.
Not dependent on salary
If you are a worker, you shouldn’t rely on your salary. You don’t work for the salary that you always spend each month. Work so that you can get a salary that you can manage as best you can later. Good salary management will make your financial record better. Especially if you set aside your salary for investment, as explained in the first point. For that, it is important for you to study finance or finance. You can learn about financial or business tips from the internet.
Managing Future Needs
You should not focus too much on when your salary can increase. Try to keep working your best because doing your best has an effect on the rewards that you can get without you expecting. Focus on your expenses, present and future. Why is this important? Because over time, there will be several expense items that you must set aside in the future.
An example is the cost of getting married. If you are single, of course you have to think about funds to get married. Moreover, the cost of getting married in the present era is quite expensive. Even if you are in a state of not spending funds, that is not your reason for not preparing wedding funds. It could be that the money you were planning to get married turned into an emergency fund for other needs.
Another expense in the future is the house. Of course everyone’s dream of owning a house is important for you to prepare funds to buy a house. Especially if you can buy a house in cash. Three other points from other expenses that you need to prepare for the future are children’s schools, vehicles, and holidays. You can plan children’s school after marriage and plan to have children.
While vehicles and vacations are actually optional expenses, they can be really needed considering that if you are married, you must have at least one vehicle. You also of course need occasionally for vacation. Preparing funds from now on for these needs is certainly highly recommended.
Buy What You Need, Not What You Want!
Good money management can be started from the way you control your desires. An example is controlling shopping during beautiful date promos at online stores. Your eyes are certainly tempted by various cute and beautiful items, especially at a discounted price. Only you have to remember, is this item you need or is it just a desire?
For that, it is important to prioritize what you need compared to what you want. If indeed your cellphone is damaged and you need a new one, there are no restrictions on buying it as long as there are sufficient funds. Don’t force buy the cellphone you want but your wallet turns out to be not what you want.
If you can’t control your desires, your financial record will be unhealthy. Especially if you spend more than income. This in the end makes you stuck with installments, loans, or credit. The ease of getting a loan in the digital era can be a smooth way for you to get stuck in a loan.
There is nothing wrong with credit or loan as long as it is accompanied by careful calculations. An example is calculating that when you borrow, you can pay a maximum value of 30% of your monthly income. If your income is IDR 3 million per month, then you should have no more than IDR 1 million in debt.
In addition, if you do have to make a loan, try to get the loan for productive needs. As small as possible, avoid applying for credit because of consumptive needs.
Knowing what is useless
It is important for you to know “how extravagant your monthly expenses are?. This is so that you can better organize your monthly expenses. You may need to record cash transactions that go in and out each day. No need to carry notes because now many applications allow you to record your expenses, for example When you already know what your expenses are, you will realize that you are wasteful on unnecessary things. Even though you can divert this money to be set aside for investment needs.
Have an Emergency Fund
The last point that is very important in managing finances is having an emergency fund. We recommend that you set aside the money you save as an emergency fund every month. The amount can be 10% of salary or it could be more.
You can prepare this emergency fund if there is an urgent need. Also, try so that you cannot easily take the money in the emergency fund. For example, you use an account from a bank whose ATM machines are rarely around you.