Managing
finance is not easy for some people.
Especially
if that person has a hobby of shopping.
The salary
can be thinned out in a matter of hours.
But if there
is an intention, controlling finances is not difficult, provided you know the
basics.
Author and
financial expert Beth Kobliner, gives 8 tips on controlling personal finance in
his book 'Get a Financial Life: Personal Finance in Your Twenties and Thirties'
to the reader as reported by Business Insider.
How to
control Beth Kobliner-style money includes tips to save money, pay off debt,
invest in the stock market, and buy insurance.
So start
saving money in 8 ways.
1. Make a health insurance
Everyone is
advised to have health insurance.
Kobliner
said, registering self insurance must be the number one financial priority.
Health
insurance is very protective of you and your family from accidents or
unexpected illness that drains the bag.
Fortunately,
there are currently many companies that guarantee the health of their employees
through insurance registered by the company. So that insurance payments are
divided in half with the company.
However,
before registering, make sure you understand the costs and the level of the
plan, including salary deductions for the insurance.
After that,
make sure the health facility code you choose is in accordance with the
hospital you are going to.
2. Be smart in paying off debts
Kobliner
said, one of the smartest financial steps you can take is to use the remaining
funds after covering your expenses to pay off high-interest loans or debt.
However,
your expenses must also be considered so that payment of debt becomes smooth.
"The
reason is simple, you can save more by paying off loans rather than saving and
investing. Because loan interest rates can reach 15 percent equivalent to those
obtained from investments, "Kobliner said.
Before
paying credit card debt, contact your credit card company and ask for a lower
rate.
Then, make
sure to pay off your debt as much as possible, as fast as you can every month.
In essence,
prioritize paying debts with the highest interest rates.
3. Follow the pension program
Putting
money into a retirement plan as soon as possible, regardless of the amount, is
a smart way you can do.
Just like
health insurance, many companies currently provide pension funds for their
workers.
If you do
not work within the scope of a company that provides employees with pensions,
open an individual retirement account and make as many contributions as
possible.
4. Have a savings fund
After paying
high-interest debt and making a pension fund, it helps you also prepare a
savings fund for unexpected needs.
These
savings should be enough for 3-6 months of living expenses.
These funds
can be stored in your respective savings.
The key to
making a savings fund is seriousness and regularity.
For example,
in a month you have to routinely set aside salary for savings funds.
If you are a
wasteful person, then arrange automatic transfers to your savings account.
"You
can arrange automatic transfers from your checking account once or twice a
month so it's as easy as saving in a bank savings account," Kobliner said.
5. Invest in the stock market
Consider
carefully your income to invest in the stock market.
You must
recognize the risks of each investment instrument so that you can create an
investment portfolio that suits you.
The Kobliner
offers two general rules for investing, including.
a. Invest
according to the risk profile that suits you.
If you tend
to be afraid of losing large amounts of money, then be a conservative investor.
Conservative
investors prefer low-risk products on the money market, such as short-term
investments and fixed income.
b. Make sure
you invest in instruments that don't charge you.
That is, you
have to learn first where you will save money. Because in this fintech era, too
many lucrative investment offers
6. Improve your credit score
Make sure
you check your credit report for any inaccuracies that might occur.
In addition
to checking credit reports, you have to manage expenses paid by credit cards so
far.
Do not make
a credit card as a means of payment because the interest rates are too high.
If you have
cash, it is better to use the money first.
7. Weigh the pros and cons of buying
a home
If you want
to buy a house, consider the good and bad things about buying a house.
By buying a
house, you must be prepared to face other expenses such as repairing part of
the house, building tax and so on.
In addition,
you also have to consider the strategic position of the house and how long you
will stay in the house.
8. Save on tax payments
Paying taxes
on time is one way to save expenses.
Because, if
you are late paying taxes, you will get double the amount you should pay.
According to
Kobliner, you can also specify deductions to maximize your savings by
registering specific deductions, including expenses for housing costs such as
mortgage interest or property taxes, and charitable donations.
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