Making money is hard, but spending money
is even harder. Knowing how to manage your personal finance, spending
appropriately will help you become more self-reliant, opening up more
development opportunities. However, how Financial
Prosperity management is currently is one of the fairly difficult problems that
many people face.
Effective personal financial management
Effective personal Financial Prosperity management is
not a simple task that can not be done every day but succeed. However, you can
start with the smallest, simplest steps. It is a habit of recording expenses
that you spend each day. The goal is so that at the end of the day you can
better summarize and reallocate your expenses.
Initially practicing financial management
can be quite difficult, because you are in a fairly free lifestyle, do not
spend too much thought. That is why you need to perform financial management
every day, because gradually it will form a good habit and be useful for you.
In addition, the review and calculation
of daily expenses will help you more easily balance and manage your expenses to
suit your plans. If so, the personal financial management effective and long
term.
Personal financial management with 6 bottles
One of the famous books on getting rich
"The Secret of Millionaire Mind" and "Get rich quick" by
Mr. T. Harv Eker has shown that a way to manage your finances is extremely
effective is to apply. recipe 6 jars. In it, depending on the income level and
you allocate your finances out of 6 jars with the following rate and purpose.
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Bottle 1: Financial Freedom Fund - 10% of
income
Freelance funds are, in other words, a
reserve fund for the future for their own purposes. You can use this fund to
retire early or satisfy your passion thanks to this fund.
Bottle 2: Long-term Consumption Fund -
10% of income
A fund to help you in situations such as
health, illness ... Having this fund will help you be more proactive in
unexpected situations.
Bottle 3: Education Fund - 10% of income
Enhancing your knowledge will help you
improve your personal knowledge, develop competencies, and create more
relationships and growth opportunities. This fund can be used to take another
communication course in another language or courses in business finance.
Bottle 4: Beneficiary - 10% of income
The ultimate goal of making money or
managing your finances is to make your life happier and happier. So you should
not be too strict on saving but forget the entertainment and enjoyment needs
for yourself. This is the reward for the efforts as well as the motivation to
try harder in the future.
Bottle 5: Share / Give Fund - 5% of
income
Giving is also a way for you to have
greater happiness. There are many more difficult and deprived lives than you
are outside of life, and it is certain that helping them will make you feel
happier and warmer. In addition, this fund is also used for you to help
relatives and friends in difficult times.
Bottle 6: Essential Consumption Fund -
55% of income
This is the main source of funds for you
to spend on daily life or other essential needs such as eating, living,
spending on clothes, clothes. Depending on your income source for this fund can
be adjusted to ensure that your daily essentials are most fulfilled.
Personal finance management by excel
Using excel tool is also an effective
personal financial management that you should apply.
The advantage of this method is that you
can use modern assistive tools on your computer, the calculation will be easier
and more accurate than using a manual method such as a manual. Storage is also
easier and secure, and you never have to worry about loss or damage like a
notebook.
However, using excel is quite a
disadvantage because you always need a technology device like a smartphone or a
laptop to fill in information. So in some cases you forget to bring your phone
or laptop, the recording will be delayed. Thus, the recalculation of
expenditure may be flawed, not completing the original plan.
The information in the form usually
includes: date, month, year, gross income, spending information (food,
supplies, gas, room ...) expenses incurred, and balance.