Everyone wants to be financially successful. To achieve this, it is necessary to prepare to manage finances in order to have a better life.
Unfortunately, not everyone is able to manage their finances so they always feel that their income is not enough to meet their daily needs.
Money Management Habits Make Life Easier in Difficult Conditions
Consciously or not, humans are sometimes wasteful by buying useless things or snacking excessively. The socialite lifestyle or being stuck in a hedonic routine is also the reason why someone always runs out of money and can't have savings.
Then the Covid-19 pandemic occurred and became a big slap in the face for everyone, especially for those who had no savings at all. Hard times can happen anytime, anywhere, and happen to anyone.
It is from this pandemic that you should learn how important it is to be able to manage finances, have savings and an emergency fund, to support you in critical times. The problem is, there are preparations that must be made before you start managing finances.
What preparations are needed before managing finances?
Well, for those of you who are just starting to manage finances and find this very difficult to do, maybe you don't have the preparation to manage finances yet. This preparation will certainly be useful for you to know in detail what and how you do it.
Mental Preparation
To manage finances, you have to be prepared internally. You have to dare to cut a number of budgets for things that are not critical so that they can be transferred to more useful savings in the future. For example, you cut costs for your favorite drink every month and put the funds into a savings account that is dedicated to an emergency fund.
You can also cut your entertainment budget, such as going to the movies, and turn it into savings for a down payment to buy a house. In addition, you can also do the following things in preparation for managing your personal finances
Science Preparation
Before starting to save, at least you need to equip yourself with knowledge related to how to manage finances. There are many articles or books that you can read. In addition, there are also many forums, webinars, as well as free online courses as well as paid online courses with affordable finance themes that you can take.
Currently, there are so many people who share knowledge about how to manage finances well. Starting from what percentage of your income should be set aside for investment, what needs must be prepared as early as possible, to knowledge about investment. The knowledge of this investment needs to be dug deeper so that you can find an investment that is suitable for you according to your needs.
Also learn how to calculate credit disbenefits. It doesn't need to be complex, you just need to learn a simple format. This income and expense calculation will make it easier for you to know where you are spending your money. Or just study the following micro learning so you can manage your personal finances better.
Goal Preparation
In financial planning, you also need to prepare your goals so that the strategies you implement are more focused. After setting up your internals and learning a lot about financial management, you should make a list of what you are saving for, when you need it, and what instruments are suitable for that purpose.
For example, you currently live in a rented house and want to buy a house. Then, you start managing expenses and set aside savings to buy a house. If your income is mediocre, it will be difficult to buy a house in cash. So save up to pay down payments to buy a house with a mortgage system.
Preparing to manage finances to buy a house
Attitude Preparation
To start managing finances, you must have a positive and proactive attitude to support the plan. You have to be disciplined in spending money. Don't let over budget cause your cashflow to be disrupted.
You also have to be patient in frugality. Since the goal is to be financially free, you should be able to train yourself not to overspend. Furthermore, you also have to be committed and consistent in managing finances, as well as learn neatly in making financial reports either daily, monthly or weekly.
Tools Preparation
Currently, there are many applications that you can use to manage your finances. You can use digital bank applications to create multiple savings accounts in one account. You can also use a more practical cash inflow calculation application. These applications can be downloaded for free on your smartphone. Take advantage of existing technology to make your financial situation better in the future.
