6 Tips To Manage Your Financial Better

22 May 2015
Many of us have difficulty in smart spending when its end of the month, it is because people frequently used up money that supposed to pay for monthly commitment.  Isn't it often happened to us?

Calculate  commitment or monthly repayment such as mortgage, car loan, phone bill, education loan, food spending, fuel charge, toll charge and parking. How much we left after all these deductions?

The question is, how to start saving? Is it hardworking only to fulfill monthly repayment, without any leisure activities, not buying new clothes or any rewards for oneself? These issues often haunted young generation who had just started their working life.

Financial issues will happened to anyone, no matter middle-income or rich people. Anyone has risks to get stress by repayment if they don't know how to manage finance carefully. But you can have a prudence financial planning through smart management.

Following these six tips that can become your guideline in prudence financial management:

  • When you received your monthly income, make sure you have divide at least 10% and put into saving. Put priority on need rather than desire.
  • Pay every monthly commitment such as car loan, mortgage and other monthly bill first, then only the rest of the money can use to fulfill your own desire spending
  • Spend according to your ability, avoid debts from unnecessary things. Except purchase something that unable to full paid by cash, such as house and car.
  • Try every efforts to avoid using credit card. This is because the impact of credit card usage will only makes you hard to control spending and increase more burden to current debts.
  • Open a savings account without ATM card to avoid from easy withdrawal, where money only withdraw during emergency situation.
  • Life is unpredictable, same as when hapless happened. Make sure you have allocated sufficient fund for your self-protection and sign up suitable insurance for your family.

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