Tips for managing your first salary for more stable finances

for fresh graduate just graduated from the world of education Of course, can’t wait to get a job soon. One of the reasons is getting your first paycheck right away. Earning money from your job for the first time will definitely be a happy time. However, at this time, most people make the mistake of managing their paychecks.

It makes a lot of sense if self-employment money is used to fulfill personal wishes, such as shopping for a wish or a celebration. However, sometimes some people forget about the responsibilities that come later.

It is not often that we encounter situations when the first salary passes without affecting life. Therefore, it is better to manage the salary so that it can be the basis for a more stable financial position in the future. Here are some tips that can be applied to first payroll management.

1. Prepare a financial budget

One of the most important principles of money management is to prepare a financial budget for a period of time. for easy control It’s better if you set up a personal budget for a month. You can prepare this budget by entering all the requirements required for that month.

Prepare your financial budget as thoroughly as possible, from primary needs to support budgets. From here you can compare and prioritize your spending. Remember to budget that doesn’t exceed your income in a month to avoid getting in debt.

Maybe for someone who has never done it before. Preparing a budget may sound complicated, but it’s actually not that difficult. You just have to write down the required requirements. Then write down how much money you need. Next, you just need to categorize them by priority or category.

2. Keep the book simple.

After budgeting However, sometimes things don’t go according to plan. There are usually something out of budget that you’ll need.

to control costs It’s also a good idea to make a book to keep track of your monthly financial flow. That way, you can easily adjust your budget. Although there were unexpected expenses because everything was saved.

Nowadays, bookkeeping is not difficult either. Because there are different types of financial apps that can help you keep your financial records. The usage is also easy and can be accessed at any time via android phone or any other device you have

3. Develop a long-term financial plan

One of the hardest things to control when you get your first paycheck is the emotional urge to buy, like buying something that isn’t really important. or go to a party

to overcome this You need to come up with a long-term financial plan that has goals or a relatively costly spending plan. but not included in the main requirement

For example, when you want to celebrate your first event. You should get it done within a few months. During this time you can plan to save money for the celebration.

If there is a good plan You’ll be able to manage your budget and expenses more easily until your plan is accomplished. Even if they have good financial management You can also save it for other purposes. In short, try not to spend extravagantly. But plan all expenses that will occur.

4. Distinguish between wants and needs.

in order to be able to use the methods mentioned above It’s important to keep in mind that you must be able to differentiate between wants and needs. Sometimes some people just can’t tell the two things apart. As a result, money cannot be managed properly.

Essentially, needs are all kinds of goods or services that a person needs to carry out their daily activities. meanwhile Desires are what we think are necessary when they are actually fulfilled. So sometimes some people don’t realize that what they think is a need is actually just a wish.

to make it easier to distinguish between wants and needs Some things to keep in mind are the nature, effects and reasons for use. Demands are often objective. effect due to benefits and use it for duty while desires are more personal. only affects satisfaction and use it because it is according to taste.

5. Start Search passive income

To make your first salary more useful It would be better if it was used as a capital in pursuit. passive income. One of them is investing because now there are many types of investments that can be done with relatively low capital.

You can start investing by buying gold or investing in mutual funds that are low risk and don’t require too much capital. when to start investing You will be able to gradually Increase your money without too much effort. Instead of spending money on things that don’t work.

before starting to invest or build passive income another, Keep in mind that you still need to prioritize personal needs and savings. That is because the benefits gained from the investment may not be huge and time consuming. It’s better if you use money that doesn’t interfere with your main needs.

6. Learn basic finance

If you want to have the ability to manage finances You should be financially literate, or at least financially literate. financial literacy Enough. So the money you have won’t just disappear. but can also be used for profit

It is not difficult to obtain information or knowledge about finance and management nowadays. There are many financial professionals who have spread their knowledge through blogs or videos about YouTube Free. Ultimately, it all depends on your desire to learn and improve.

7. Savings and Insurance

To manage your first salary properly and correctly The next thing you need to know is savings and insurance. After knowing different ways in managing finances and looking for additional benefits You also need to know how to save money for emergencies.

In general, what people tend to do is create personal savings to make it easier to use in emergencies. However, the weakness of self-help is sometimes the desire to use the savings they have accumulated in non-emergency situations.

An alternative that is often used for people who have difficulty withholding their personal needs is to use insurance. Using the right insurance You will receive benefits under certain conditions, however, due to its inflexible nature. Many people feel that using insurance is useless. to feel the impact of insurance Users can only claim their “savings” money when certain conditions are met, such as when they are sick or have an accident.

to keep your money available in emergency situations You need to research and know about your own condition to determine the savings scheme that works best for you. If you are self-disciplined It’s better to save money in the bank and it doesn’t require insurance. It’s better to use insurance.

That’s the tip we can give you so that you can manage your first salary well so that it doesn’t run out like that. Hopefully with the above method You will be able to manage your finances well and have a more stable financial position in the future.