Managing finances for future savings is one of the most important foundations in life. Unfortunately, not everyone can save and be able to manage finances well, especially the 18-30 year old generation or what is commonly called the millennial generation.
The demands of lifestyle and consumptive behavior are one of the main factors for this millennial generation who tend to prefer to enjoy life just for sightseeing, hanging out, shopping online, watching concerts and other entertainments. This is certainly a worrying fact, especially considering the continued soaring prices of land, property and basic needs that can happen at any time.
No wonder, if you have worked for many years, but not a penny of money has been collected to be used as savings in the future. Saving is clearly not easy, therefore, it takes determination and good financial management in order to be able to set aside our income so that it can be maximized. But don’t worry, for millennials who are still having trouble managing finances, let’s look at the tips for saving and managing planned finances below!
- Open a special savings account
In today’s era, there are many banking products that make it easier for you to save. You can choose one of the many banks that provide savings facilities that can provide benefits or benefits in the future according to your needs. Avoid saving in the same account as your monthly income account, of course this needs to be done to control your expenses so they don’t mess up.
- Set aside 10% of income
Even though the amount looks small, it takes a lot of consistency to be able to do it. You must be orderly and consistent from the start to set aside 20% of your income each month to be saved to the savings account that you created earlier.
- Make a list of expenses
Recording every expense that you have spent will really help you to manage your finances every month. Don’t forget to always detail your expenses in as much detail as possible, the goal is to let you know where your income is going every month.
- Find extra income
If you feel you can’t set aside some of your monthly income for savings, don’t worry. You can look for other additional income outside of your regular income every month, such as trading, becoming a reseller to freelance. As long as it doesn’t interfere with your main job.
- Reduce the use of credit cards
Having too many credit cards is also not good for your financial condition. Having more than one credit card will only make you have a consumptive behavior and get used to being in debt. Even though you are not necessarily able to pay the installment bill every month, right?
- Start to dare to invest
Although most millennials have started saving early, only a few percent of them have the courage to invest. In fact, there are various benefits and advantages that can be obtained in the future if we dare to invest. The choice of investment types is now increasingly diverse, such as deposits, mutual funds, bonds, stocks, gold to property. Please select the type of investment that suits your needs.
Those are some tips for managing planned finances for the millennial generation in the future. Even though it’s hard to start and feels heavy at first, believe me, the results you get will be very profitable later on. The most important thing is intention, consistency and discipline. So don’t just enjoy life for today, you must also be able to enjoy life for the future!