Many of us are not really worried about the future that is awaiting for us, thinking that it is impossible that something bad would happen just because right now we do not face any problems and difficulties yet. Right now we are in our comfort zone spending our money to buy this and that. But what if something bad happened to us that we do not have stable financial status anymore? That is why everyone needs financial plans in their life, so that the flow of the money does not go to unnecessary things. After this we will give you some tips on how to manage your finances. Do stay with us!
Before that, why is finance management important for you?
- Save financial future
Having finance management is really important so that you could put aside some money for your future savings. Future saving is really important as it could act as your emergency fund. This is because we never know what awaits you in the future. If in the future you are in trouble of needing money, you can use that money that you have saved. For your information, you could actually invest in financial protection insurance plan Malaysia as it is more secure to you. You can go to their page, AmMetLife to know more about it!
- Enough for the whole month
Imagine if after getting your payment from the boss, you decide to buy this and that without any financial plan. You might spend too much money just on the first day of the payment! You might say you want to reward yourself by buying a bag, shoes, clothes and food! But imagine if you buy all those in a day! At the end of the day, you will not have enough money to even buy your necessities like food, and end up cutting your meal a few weeks or days before getting the next payment. It is okay to reward yourself but make sure you won’t spend too much money on it. Maybe one thing per month is enough according to your budget.
Tips on how to manage your money
- Create two bank accounts
If you have a big amount of money once you receive your check, you might need to transfer some of the money into another bank account. For example, you need to quickly split your usual personal expenses such as food into other accounts. So you are not going to use the money in your other account. The other account will be used for the savings, paying bills as well as other important things.
- Make a checklist
When buying something, especially groceries, you need to do a checklist on what you need to buy. Do not buy things that are not included in the list. It is important so that you will not ruin your budget. Besides, you also need to do a checklist for all your bills so that you know how much you have spent on those bills.
- Assess priorities
– You need to understand the difference between ‘needs’ and ‘desire’. Needs are something that you really need, for example food to make you full. Food can also be a desire when you just buy all the food without checking the price or even when you are not hungry.
In conclusion, financial management is really important so that you would have a better life right now as well as in the future. There are various tips that you could apply to manage your finances properly. Act now!