Jakarta, CNBC Indonesia – If you have been experiencing difficulties in managing your finances which has resulted in difficulty setting aside money for either saving or investing, perhaps your priorities need to be adjusted.
Not a few people regret it because even though they already have a good career at the age of two or three, they feel deprived because they can’t have what they have always dreamed of.
Everyone has a different lifestyle, and each lifestyle choice costs differently.
There are people who in a month can be entertained by just streaming movies at home. But there are also those who have to go for a walk or staycation outside the city.
The higher your lifestyle, the more difficult it is for us to consistently set aside money for saving and investing, especially if our income is mediocre.
Most likely, it is lifestyle that makes someone trapped in this. As a result, being rich is something that is difficult to realize.
But don’t worry, just instill these three thoughts in your mind, and you too can get rich quickly.
Determine your expenses through “percentages”
Stop determining expenses based on numbers, and use percentages as you would:
“Your expenses for renting a residence are 20% of your monthly income, you allocate 30% for living expenses, 20% for entertainment or lifestyle expenses and 30% for saving and investing.”
Determining expenses based on a percentage will make you more careful in making financial decisions.
When your income increases, the amount allocated for saving and investment also automatically increases. Even so, is it normal for the cost of housing rent, daily necessities, and entertainment to also increase? The explanation is in the next point.
Be aware of lifestyle changes
Everything, whether goods or services, will definitely experience inflation, including goods and services in the lifestyle sector.
It’s not wrong to upgrade expenses related to entertainment or lifestyle when your income increases, but don’t go too far.
Try when your income increases, the percentage of expenses for these posts does not need to increase or even decrease. Because even if you reduce it, you will still have the same entertainment or lifestyle as when your income has not increased.
Use the pay yourself first budgeting method
With this method of financial management, the first thing you have to do is allocate money for saving and investing first. The rest can be used for living expenses and your lifestyle.
You certainly don’t need to worry anymore about lifestyle expenses because lifestyle expenses will use the “leftover money” you have in a month.
This method is also very appropriate for people who are single and do not have dependents.
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