How effective personal finance management?


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.

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.

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