Managing finance is not an easy thing. Managing finance is not about calculating every income and expense, but also learning how to balance both. For this reason, you must know the details of short and long term expenditures and those that should not be forgotten, frugality. If you are still confused, Alinear will share several tips on managing finance which are not widely known, reported from cermati.com.
1. Don’t Waste Your Coins
Don't underestimate coins! Keep your coins from shopping in stalls, minimarkets, etc! You can keep it in a piggy bank so it doesn't scatter. Then what is the use of those coins? If you keep saving your coins and it will grow, you can use those coins when you start running out of your main money, such as buying data package or simply buying bath soap, shampoo and others.
2. Manage Your Salary with 50-20-30 Principle
This way is quite easy, and not many people have implemented it. Then what does the principle 50-20-30 mean? Every time you receive a salary, allocate 50% for daily needs, such as foods, transportation costs, including credit card bills.
Set aside 20% for savings and investment. This is 100% very useful as an emergency fund, for example when you suddenly sick, your car is broken, or other unexpected events. Do not forget to also leave for investment which will certainly be very useful in the future.
While the other 30% you can enjoy to please yourself. If your budget allocation for entertainment in your opinion is too large, you can exchange it with savings allocation. The important thing is you must stick to the principle 50-20-30.
3. Think Yourself at 80
For now you may still be in the millennial age, around 20s to 30. But try to imagine when you are 80. Do you still want to work or just want to enjoy your pension time with your childrens and grandchildrens? If you want the second option, you certainly have to start thinking about retirement savings since you are still young.
Imagine also at the age of 80, you already have what you want, like home and vehicle, send your children to college, the whole family is protected by insurance, there is an effort to support your pension time without having to burden your childrens. It's beautiful, isn't it? To achieve all that, you need to prepare a pension fund from now.
4. Using Credit Card Wisely
Even though you are managing finances, you can still use your credit card, but you must use it wisely. The longer the credit card age and the accuracy of paying installments will be recorded on your credit score. Closing your credit card will damage your credit score. If you have your credit card for a long time and has a reasonable limit, you do not need to close it, because the card can be used for emergency situations.
5. Negotiate Interest when Applying for a Loan
Do you know if the loan interest can be negotiated? You simply go to the bank to discuss the interest and tenor of the loan. The purpose is not to disrupt your finance. So, your income is not only spent to pay instalments.