Tips on Managing Your Salary For The First – The world of work is indeed a lot of impressions, especially the first time starting a work experience. There must be something going on, whether it’s fun or tiring. Including when receiving a salary for the first time, it would be great to be able to make money with your own sweat.
Well, for those of you who are just beginning to enter the world of work and are still laying about managing salaries, certainly do not want the hard-earned money to run out in the blink of an eye right? You need a strategy so that your money can be used until the end of the month, and you can even save money.
Tips on Managing Your Salary For The First
Planning the Right Monthly Budget
Finance requires careful planning from the beginning. Therefore, it is mandatory for you to have a smart financial budget. Take your time to create this budget so you can arrange it as effectively as possible.
Enter all expense posts and various other posts that you consider important. Adjust the amount of the current salary, including other income if any. Make sure the amount of expenses is reasonable and in accordance with the income so that it will not experience financial problems in the middle of the month or long before the payday date arrives.
Strive to always meet various basic needs first before finally spending money on the various needs that are not so important.
Record Expenses
The next tip on Managing Your Salary For The First is record your expenses.
Have you ever felt that your money suddenly ran out without knowing where the money was going? It may be that you do not record expenses into books or notes on your smartphone.
In order for you to know where your money is going, you must have a simple cash record containing income and expenses. From that note you can know which expenses spend the most money, and which expenses need to be cut so that there is no waste.
Set aside for Saving
In managing your salary, you can apply the 50-30-20 principle. The principle has rules to divide income into 3 parts, namely 50% for basic needs, 30% for savings, and 20% for entertainment or shopping.
Do not wait for any remaining of the various expenses and the rest of the month to save. Precisely, if you rely on the remaining savings, you will usually fail to save because there is no money left and diverted to other needs.
Invest
In addition to saving money, you should also set aside money for investment every month. Although the funds set aside are not very large, but it should be long-term to invest. With investment can also be used for pension funds.
Keeping spending under control
Controlling spending, especially the largest expenditures, is also necessary. Suppose spending no more than 20 percent to pay home installments, if you have taken out a home loan. By keeping the biggest expenses expected, you can also save and invest.
Emergency Fund
In addition to saving money, you also need to prepare an emergency fund. Emergency funds can be set aside little by little in each month. Emergency funds serve as reserves for unexpected expenses such as regular hospital pay or budgets to buy gifts when a friend is married or on a birthday.
You can also use the accumulated emergency funds for investment. So you can get other income from the investment you plant.
Read more about How To Save Money For An Emergency Fund + FAQ
Don’t be tempted by installments
When you get a salary at the beginning of work you may be tempted to buy something by installments. Because you feel you already have a fixed income that can be relied on to pay the installments.
If you are still early in managing your salary, you should avoid installments, especially if you are tempted by 0% installments. Especially if the item is not too urgent to buy. Your unstable financial condition can weigh on you when you pay the installments. It is better for you to transfer the money for basic needs or save it.
Adjust Spending with Revenue
If you already have your own income doesn’t mean you can buy whatever you want. Adjust the budget with the items you want to buy. If you have not been able to buy the item with your current financial condition, it is better not to be forced to buy let alone get in debt.
Spend your money on the budget. Don’t be extravagant, let alone indebted.
Thank you very much for reading Tips on Managing Your Salary For The First, hopefully useful.
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