Do you often run out of money at the beginning of the month, even though your payday is still long? This is indeed a serious problem that many people experience and this shows that they actually have problems managing finances.
Because many people have experienced it, there's really no need to be ashamed or afraid to admit it. In this era of rapid digital development, it is not easy to manage finances, because there are many temptations such as shopping, snacks and games where everything can be done online without having to leave the house.
Although the main cause of running out of money is mostly because you can't resist the urge to shop for things you don't really need and are tempted by the promos that many brands offer.
If this continues, of course, it is very dangerous for your financial situation. Therefore you must immediately recognize what are the signs of mismanaging finances.
Use credit cards wisely
If you have a credit card, use the magic card wisely. The thing to remember is that credit cards are not a substitute for salary. Although it can make life and finances easier, that doesn't mean you can use it as you please.
Income always runs out at the beginning of the month
Surely a lot of people have run out of money at the beginning of the month, even though it will take a long time to get to next month's salary. This is one of the characteristics you are wrong in managing personal finances. Eventually you will try to find extra money to cover the shortfall until you receive the next salary.
Therefore, do an evaluation of your finances, make a note of the debt that you really have to pay every month. Do not forget to make a list of monthly needs. Then, try to shop according to the list you have, so you can still have money left over until payday.
Debt arrears
If you are still in doubt or considering which debt to pay first at the beginning of each month. Then this shows, if you have problems with finances. Even though you have to decide everything related to debt immediately so that it doesn't accumulate and even make debt more and more.
Finance is too tight, so there is no more budget
What if you've done an evaluation, but can't figure out which budget to reduce to cover the rest? This can be said if you experience an income crisis. In general, if you experience this, make sure you will feel confused to determine which needs are the main and which are not.
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Therefore you must learn to consider where the income money is allocated later, you also have to know which are basic needs and which are not. Don't let the money run out, but the bills and debts that you have have not been paid.
Don't have an emergency fund
This emergency fund is very important, because it will be able to help you at certain times. For example, when a family member is sick, you are laid off or something else. Usually the amount set aside for an emergency fund is two to three times the monthly expenses, but there are also those who suggest 15% – 20% of the total income.
Always worry about financial situation
Excessive worrying is not a good thing, let alone to interfere with daily performance and activities. In order to avoid worrying about financial problems, it's a good idea to start managing your income.
Make a monthly list, but before that you must know in advance how much you earn in one month. If you already know it, you can start recording what your mandatory monthly expenses are.
For example, electricity bills, water bills, BPJS, environmental fees, boarding houses etc. If so, the next step is to record the needs of the house, for example rice, gas, sugar, etc. Then debt, remember for debt, try not to exceed 30% of total income. Go ahead and put the money in an envelope that has your needs written on it.
No investment and savings
If you are still in debt at the end of each month, for example, you cannot pay debts or set aside for savings and you do not have investments. Obviously, you do have problems in terms of financial management.
Of course, this is a serious situation and must be corrected immediately, although indeed generating or fixing financial problems is not easy. However, you have to be sure that you can do it.
The first thing to do is pay off all the debts you have, because this debt is like a virus that if left unchecked will spread. If the basic income is not sufficient, then you have to look for additional to alleviate this problem.
Then, start learning to set aside money for investment and saving. You must have the intention and sincerity if you really want to get out of financial problems. Also learn to distinguish between needs and wants so that you know the flow of personal finances.
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