Do your salary just pass through every month? This condition can cause problems every month. I don’t know where the money goes. Financial problems are inevitable. These problems always haunt you every month.
You don’t realize it because you never make regular financial records. Do not have a clear financial plan.
For expenses, daily needs, paying debts, entertainment, as you please. There are no special percentages or quantities. As a result, not yet payday, the money has run out.
Here are three financial problems that can make your life miserable:
Overspending
After receiving a salary, most people do not control spending.
Usually overspending or without calculation. Unknowingly, there hasn’t been a week, a month’s salary is just a little. Even though there is no budget allocation for emergency funds and investments.
It is calculated, the salary will not be enough for a month’s living expenses. That is, it’s still a young date but feels like an old date. You start to get confused.
The safest solution is a “strict diet”. Save hard so that your main needs are still met, such as food, transportation costs to the office, buying electricity tokens.
In fact, if you manage your finances well, you will not have bad luck like this. Maybe you will not experience such an old date, because expenses are safely under control.
You can still eat well, enjoy entertainment even once a month, don’t worry about the electricity going out because the tokens run out, or you don’t have to walk to save on transportation costs.
Do not have an emergency fund
Due to the importance of desire, the emergency fund is forgotten. There was never a special budget for an emergency fund. That’s because it’s too easy.
“Ah, not necessarily sick in a month,” or “Relax, if you are sick, there is insurance.” Emergency funds are very important in financial management. Because, its nature is just in case there is an urgent need, such as illness, accident, layoffs, and so on.
If suddenly this happens, while you don’t have a dime emergency fund, like it or not, you have to borrow money to be able to finance it. Consequently, the debt must be paid.
This debt will be a financial burden every month. The burden increases if it turns out that this is not your first loan. Previously you already had debt. Then apply for a new debt again.
As a result, debt is mounting and has the potential to default. Therefore, it is important to set aside an emergency fund early on.
The amount of budget allocation is about 10 percent of salary to raise an ideal emergency fund. That is 3-6 times a month’s expenditure for singles. As for those who are married and have children, 6-12 times the expenditure.
Always withdraw savings
Savings are for the future or realizing your financial goals. It should not be used at will. But having a deposit in a savings account is very easy to withdraw or withdraw.
This is often the temptation. Less money when shopping, swipe debit card or take money at ATM to pay. The balance in the savings automatically decreases.
And this continues to become a habit. Not just once or twice. Worse yet, it has been taken, the savings are not added. You don’t set aside money for savings. Over time the balance in the savings runs out.
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