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10 Ways to Manage Finances for Independent Families

10 Ways to Manage Finances for Independent Families

10 Ways to Manage Finances for Independent Families

How to Manage Finances for All Families independently is absolutely necessary, whether it is monthly or daily. In the household, appropriate arrangements are needed so as not to be wasteful in using income and salary for adolescents or students, especially in difficult times.

By knowing good and correct financial management methods, of course you will avoid shortages of money in the days ahead, especially in the current difficult pandemic era. By making the right monthly and daily systems, even though the funds are minimal, it will be easier to manage in the family.

Are you the one who wants to know the right method and technique? Let's just see in full below:


1. Income Settings with the 50-20-30 System

How to manage finances on this item is indeed very simple, but not many people know. Therefore, use a 50-20-30 budget management system. What is that? 50% of the salary or income you receive each month is used for daily living expenses, such as transportation, food, rental, water, electricity, and credit including credit card bills.

Next, set aside 20% of your salary for savings and investment. You must allocate funds for emergency funds, for example when you are sick, your motorbike breaks down, or other accidents. Don't forget to use it to invest in pension funds or other investment vehicles. This money cannot be competed.

At the same time, the remaining 30% of your salary is used for entertainment, vacation, shopping or buying needed items. If you think this budget allocation is too large, you can reduce the budget allocation. You can actually make adjustments based on the 50-20-30 principle.


2. Make Budgeting on a Monthly, Weekly and Daily Scale

Although it seems simple, in reality not many people actually make a budget to improve their financial situation.

Try applying this feature to adjust your spending budget. For example, if your annual salary is 5 million rupiah and you want to save 1 million rupiah per month, then you can use another 3 million rupiah to pay for living expenses, for example:

  • Consumption cost in one month: IDR 1 million
  • Internet credit fee: IDR 50,000
  • Daily necessities (toothpaste, facial cleanser and other necessities): Rp 350,000
  • Gasoline: Rp. 300000
  • Emergency fund: IDR 350,000
  • Installment payment: IDR 1 million
  • Unexpected 1 million

If it has been detailed, is it easier to control the flow of funds?


3. Wise Use of Credit Cards

Even though you are managing finances, you don't need to close your credit card. You can use a credit card to solve loan problems wisely. The longer the credit card life, the accuracy of the installment payments will be recorded in your credit score. Turning off a credit card will certainly damage your credit score. If your credit card limit is not high, just ignore it because you can use it for urgent needs.


4. Don't Overpend

If you don't want to be sad when the old date arrives, try to control yourself so you don't spend too much money when you receive your salary at the beginning of the month.

Give priority to your needs and needs. If you're only buying to satisfy your cravings, don't do it.

Wasting money on things you really don't need is not a wise choice for you.

As the saying goes: "If you waste money on things you don't need, you will sell what you need in the future." If you don't want to run out of money at the end of the month, spend it wisely.

5. Using insurance products

Make no mistake, some life insurance policies today offer expedited benefit options. The death benefit or benefit can be paid while the insured is still alive. For example, when you buy insurance for a 75 year old mother, you can file an insurance claim for maternal care when you are sick. Later, the insurance company will reduce the medical costs paid.

If your mother dies, the remaining balance will be paid to you. Life insurance can be used to replace a living partner's source of income, provide insurance for the heirs, replace the value of assets, maximize pension funds, and provide school fees and other benefits for children and grandchildren.


6. Negotiating Loan Interest

Who says loan interest is non-transferable? It's simple, just go to the bank to discuss it. You can talk about the interest and terms of the loan. The goal is not to disrupt your overall financial situation. Therefore, not all income is only paid in installments.


7. Project yourself at the age of 70 years

Currently, you are still in the millennial age range of 20 to 30 years. But, imagine that you are 70 years old. Do you still want to earn money and work or do you want to live with your children and grandchildren? If you don't want your retirement life to suffer without adequate financial preparation, then of course you should start considering retirement savings when you are young.

Imagine when you are 80 years old, you already own a house and a vehicle, send your children to graduate school, your entire family is insured, and there is a business that supports the elderly. Pretty right? To achieve all of this, you need to manage your finances appropriately when you are young. Of course, you don't have to sacrifice your lifestyle.

Read Also : Manage Low Income Families

8. Preparing the Old Age Fund

At retirement age, not many people consider retirement funds. On average they believe that the money they make can only meet their current needs. Even if you have to prepare a pension or savings fund. A place where you will grow up and no longer engage in efficient work. You can set aside 10% of your monthly salary as retirement savings.


9. Set aside Emergency Fund

In addition, setting up an emergency fund can be included in your plans for managing finances in 2020. You will find it useful to set up an emergency fund when something happens that requires a quick donation.

Many financial advisors say that if you want to invest a lot of money, make sure you have some savings to last at least the next 6 months. Another tip that is related to other funds is to determine the lower limit of savings.

For example, suppose you set a lower limit for saving IDR 100,000. Therefore, if the notional amount of your savings is less than IDR 100,000, you can say that you are in debt. Even if you owe it to yourself, it is best to pay it off immediately.

Most importantly, do not try to use an emergency fund for purposes that are not important and urgent.


10. Looking for Additional Income

If you cut costs a lot but still haven't had a significant impact on your salary savings, maybe another way is to find some extra income.

If you have enough time and energy, you can apply this method. Don't let yourself go for extra income, because your job at your main job will not be at its best.



By knowing the proper management techniques and methods, you will be more mature in preparing your family finances in managing monthly, daily, and weekly scales in difficult times. For students and teenagers, the right way to manage finances is very necessary so that it is not wasteful in the future.

The tips above can also be applied to small and medium businesses who want to run their business. Hopefully the article above 10 Ways to manage finances for independent families is useful and please share with friends or relatives in need.

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