Already have an income but can't save? Here are 7 tips for managing finances for millennials

1bilioner | 15 April 2024
1bilioner - 7 tips for managing finances for millennials

Managing finances is not an easy thing. Even though we have received a salary or income, sometimes making the money we have continue to grow is still a difficult thing to do. Especially if we earn the same income but our expenses are getting bigger every month.

A bad habit of ours is that we tend to spend money in the beginning and save at the end. If it continues like that, there might not be a chance for us to save money. To avoid these things, we need planning in managing finances. Here are tips for managing finances so that savings continue to grow according to the Ministry of Finance:

  1. Pay attention to the little things
  2. Don't underestimate the little things. We usually take small expenses for granted, such as spending on coffee every morning, or an afternoon snack for example. Most people are very careful and tend to think carefully about buying expensive items, but are less controlled in spending on small things. In fact, maybe if combined in one month the amount of spending on small things is greater than the expensive item. That's what sometimes makes our finances uncontrollable. So be more careful in making expenses, especially for small things.

  3. Recording income and expenses
  4. We often don't care enough about our income and expenditure records. Sometimes even at the end of the month we are confused about where our money "went". By recording our income and expenses, we can more easily keep track of our monthly finances. This can be done with simple bookkeeping on a small note. Nowadays, there are also many applications on gadgets that can accommodate and simplify financial recording.

    Record your income for one month, then create expense items. Make a list of expenses and targets for each of these expense items regularly every month. That way we can see the items that exceed the target and can be our alarm in spending money. This will make it easier to manage our finances.

  5. Don't spend for prestige
  6. Nowadays, branded goods are very popular. Usually we buy them to fulfill prestige and follow the lifestyle. It would be better if we can use it to increase savings and buy things that we really need. Not because it's trending, let alone because of prestige. We need to realize that the development of trends and prestige will never end if we continue to follow them.

  7. Create a prioritized list of needs
  8. Make a prioritized list of needs starting from the very important to the less important. Start from the very urgent to those that can still be postponed to be fulfilled. By making a priority scale we can more easily manage expenses. In addition, we can also learn to be more frugal and organized.

  9. Discipline in saving
  10. Many people think that saving money is saving the money left over at the end of the month. This is a mistake. If you want the money in your savings to increase quickly, make a savings target and immediately set aside the money at the beginning of the month. If necessary, create your own savings account that is different from the account you usually use everyday.

  11. Set future targets
  12. One effective way to manage finances is to set targets in the future. For example, when you are 30 you aim to have your own vehicle, when you are 35 you will have your own house, and so on. By setting a target, it means that we are also ready to start and implement it. Don't let the target become a discourse only. By having a target, we are also required to be able to make plans so that the target can be achieved and become a separate motivation for us to find ways to achieve these dreams.

  13. Don't be afraid to invest
  14. Investing does have many risks. However, from the amount of risk there is also a large potential profit if done properly. In order to be able to invest well, we must also learn and practice in order to be able to make the right strategy in investing.

The first thing you can do is find out which type of investment is suitable. Next, find out as much information as possible about the investment you choose according to your financial situation. The most important thing is not to interfere with other expenditure items.

Those are some tips that can help you manage your finances, hopefully your savings will continue to grow after reading this article, so now there is no more reason not to save and have no money at the end of the month.

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