How to Avoid Wasteful ?

How to Avoid Wasteful - You as a young man must often experience waste at the beginning you get money or salary. This time will give you tips to not be extravagant in managing your finances.
How to Avoid Wasteful
How to Avoid Wasteful

How to Avoid Wasteful

1. Making Financial Budgets

They tend to ignore it until they feel that it is extravagant, when looking at the account at the end of the month. In fact, budget creation is an important first step to avoid being wasteful.

Financial budgets have several objectives, such as the following:

  1. To avoid debt
  2. To avoid unexpected costs
  3. In order to get credit rating from a good bank
  4. To make it easier for us to get automotive credits
  5. In order to know which areas of the financial budget can be saved
  6. In order to know whether our finances are in a good position to save vacations, new cars, or other entertainment.

Once we realize how important the financial budget is, then the next question is what are the contents of the budget?

Financial budgets usually consist of fixed monthly expenses, such as household bills, daily living expenses, financial products (insurance), Family and friends (gifts), transportation and entertainment (holidays, sports, restaurants, etc.).

2. Make Financial Records

The next tip is to make a financial record.

Financial records differ from financial budgets, if the financial budget is a fixed monthly expenditure, while financial records constitute an unfixed or permanent expenditure on a daily basis.

Make a financial record simply by writing daily expenses and don't forget to record the income we have, because at the end of the month we will evaluate whether our expenditure is greater than income or not.

Try it out for 1 month by writing daily expenses, like monthly shopping, weekly shopping, daily shopping, street food, café, restaurants, make-up, and more.

The purpose of the making of this financial record is to get all expenses (whether fixed or not fixed) that are counted to get the amount spent.                              

3. Recheck Your Financial Budget Again

You've made budgets and financial records this month, the next step is you look back at your budget and financial records with your income this month.

If you're spending too much, then all you have to do is find out which parts of your expenses can be reduced or need to be saved. If you still have the rest of the income in that month, you can sow it.

The financial budget you make should be able to adapt to your daily needs. It could be a time when your financial situation is up, then you can save more. If things turn around, then you should make extra savings.

4. If You Have a Debt/Loan or Even Both, You Should be Paid, Do Not Add New Debt

How do you pay for credit card or loan debt? The first thing you do is control the debt and try to pay it on time.

Make sure you pay off your debts with the highest interest first. By paying the debt that has the highest interest, then you can take control of your debts.

If you have a credit card debt, you can pay the most minimum of pre-approved credit agreements.

So you can still pay off your debts and you can be trusted to manage your finances.

5. Do Not Forget to Save

You've made a budget and know where to save, then the next step is saving. Why save? You should save as your emergency funds and as your retirement money.

Why save money for emergency funds? The emergency fund is like to be forgotten by most people, because it thinks that the person is not sick or not in a difficult state. But in life, when it is hard and when happy nobody knows.

To anticipate when you are in a difficult state, such as illness or suddenly you have to quit the job you have now, then you must have an emergency fund.

If you have an emergency fund, then you already have a healthy personal finance plan.

You are already preparing for emergency funds, then the next step is to save money to prepare your pension fund. The earlier you plan your finances for retirement then you can enjoy the retirement more easily.

6. Choose the Right use the Services of a Financial Planner

You certainly want to seriously live a life without being extravagant.

You can revise your budget only in a grasp, record your finances, save money and much more. You can also use Microsoft Excel applications to help you plan your finances.

If you want to have a healthy financial and get expert opinion on how to manage good finances, then you can contact financial planners to assist you in achieving your financial goals.

7. Don't Forget to Save Regularly

The last step and always hard to do is to save regularly. You may still not be able to save with a certain nominal amount each month.

You can save money even after a small month. By familiarizing saving, it can make us have a healthy financial habit.

If you want to save regularly and a certain amount each month, you can create an account that is directly transferred automatically from the account you often use to your savings account.

In that way, you will not forget to save.

That's your seven ways of reducing wasteful. Wasteful may come from your mistakes in financial planning. Do not know how, until confused to start from which can make your income just pass by the beginning of the month.

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