6 Easy Ways to Manage Personal Finances Healthily and Safely

6 Easy Ways to Manage Personal Finances Healthily and Safely

Everyone desires happiness, and one way to achieve it is by managing personal finances healthily and safely. However, not everyone is capable of doing so. There are various obstacles, from extravagant behavior to lack of savings. Nonetheless, there are easy ways to manage personal finances healthily and safely.

Interested in knowing how? The article below will thoroughly discuss the easy ways to manage personal finances healthily and safely. To implement them, read until the end.

Easy Ways to Manage Personal Finances Healthily and Safely

As mentioned above, here are six easy ways to manage personal finances healthily and safely.

1. Manage Expenses Wisely

When it comes to managing expenses, it's not an easy task. There are things to be known and then practiced in your personal finances.

For example, suppose you are an employee in a private company. Your salary or income will usually be deducted by the company for taxes, health insurance, and donations such as zakat. After that, you receive your net salary.

In managing your net salary, simply saving it in the bank is not enough. With fluctuating inflation, bank interest is not greater than monthly administrative costs. Therefore, it is recommended for you to try other investments.

These investments could be in stocks, mutual funds, or time deposits. With proper calculations, the returns from these investments could potentially increase your income.

2. Create a Monthly Budget

There is an interesting formula in creating a monthly budget, namely 40-30-20-10. The breakdown is as follows:

- 40% is used for daily needs such as electricity bills, telephone bills, water bills, and daily shopping expenses.
- 30% is used to pay off debts, provided that you have debts. If not, it can be allocated to other expenses.
- 20% is used from your income for savings or other investments. This needs to be pursued for better financial stability in the future.
- 10% is used for other donations (charity, zakat, or alms).

By applying such a method, it becomes easy for you to manage personal finances healthily and safely.

3. Keep Personal Financial Records

For some people, keeping records is not easy. Because, the habit of some Indonesian people prefers remembering rather than recording. However, memories of something can disappear or even be lost. To anticipate this, the easiest way is to keep records.

Currently, recording is not only done using pens or pencils on paper. Recording can also be done on smartphones, laptops, and computers. There are many applications that can support financial recording.

In keeping personal financial records, you should also have primary goals. For example, you want to get a mortgage within ten years. The mortgage price is, for example, Rp300 million. With a minimum down payment of 30%, you need to have Rp90 million. This fund is what you will strive to make a reality.

4. Prepare an Emergency Fund

Emergency funds are essential for both personal and family needs. However, there is a separate formula for calculation. There are three formulas for individuals, families without dependent children, and families with children.

- For individuals, they need to gather an emergency fund of 6 times the total income for a month.
- For those who are married but do not have children, their emergency fund should be 9 times the total income for a month.
- For those who are married and have children, their emergency fund should be 12 times the total income for a month.

5. Have Health and Life Insurance

For some people, having insurance is a waste. However, in fact, it is not. For example, health insurance that turns into BPJS can be very useful because it can fund treatment when you are sick. Additionally, it can protect and prevent asset loss. Therefore, it is important for everyone to have health insurance.

6. Pay Off Debts

For some people, having debts is taboo. Because, debt, which sometimes carries interest, will trap your finances. However, some people are helped by debt, making their finances secure.

However, when you have debt, don't forget to pay it off. Because, this is also important. When debts pile up and are not paid off immediately, it will disrupt your overall financial situation.

You can implement the above six ways to manage personal finances healthily and safely into your daily life. To ensure personal finance security, equip yourself with Brick to manage your personal finances better. ***

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