This Is A Wise Way To Set Monthly Salary, So You Can Save

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JAKARTA - Someone who already has a salary from the results of his hard work, should be wise in managing his monthly salary so that he can save. Because if you are not wise in managing your finances, this can later have a bad impact on survival, for example, lack of money in the middle of the month, difficulty paying bills, not having an emergency fund, and so on.

Knowing the various bad effects, of course you don't want to experience it, right? Therefore, try to apply these tips so that you can wisely manage your monthly salary and save money.

1. Make a Monthly or Weekly Budget Planning

Salary is the most awaited thing for everyone who is already working, because without income or money, they cannot buy the necessities of daily life. After receiving your salary, the most important thing is that you have to plan a monthly or weekly budget. Start by making a list of groceries that you want to buy, then choose based on priority needs.

Buying living necessities for a week or a month, it is necessary to select goods based on their use and priority of use. This is important so that the items purchased are actually used and do not go to waste.

You can make budget planning starting from food needs, then hygiene, health, body care, and others. If needed, also write down the price range so you can find out the estimated money that will be spent on shopping needs.

2. Find the best product but the price is cheap

The way to set a monthly salary so that you can save the next one is to find the best product but the price is cheap. Please note that not all products with low prices have poor quality, so you just need to be smart in choosing and see the quality before buying an item.

At LOTTE Mart, there are lots of necessities that are of very good quality but cheap, perfect for you if you want to manage your finances more efficiently without torturing yourself. The way to get lots of cheap and good quality items at LOTTE Mart is to visit the LOTTE Mart inspiration column. It contains a lot of inspiration as well as the best recommendations for more efficient shopping.

You don't need to make savings to the point of bothering yourself, let alone buying cheap but poor quality goods. Actually, you can shop cheaper and of higher quality, try visiting the nearest LOTTE Mart to do your monthly or weekly shopping because there are lots of interesting promos there. In addition, you can also buy all kinds of necessities through the LOTTEMartmall application if you don't have time to leave the house.

3. Try the Distribution of Monthly Salary with the 50 30 20 . System

A wise way to manage your monthly salary is to try to divide it into a 50 30 20 system. Where 50% of your salary is allocated for your daily needs, 30% for your desires or hobbies, and 20% for savings, investments, and emergency funds.

The share for desires and savings can be exchanged, for example, 30% for savings and 20% for wishes. But make sure that the budget for daily needs must at least be larger than others, this is because if it is smaller it will be difficult for yourself in the future.

Living frugally is fine, but don't let yourself be troubled. If you can't afford or have other ways than dividing 50 30 20, try to adjust it according to your own needs. But most importantly, it is mandatory to set aside salary for savings and emergency funds.

4. Avoid Satisfying Prestige and Showing Off

Lately, there has been a trend of flexing or showing off one's salary and assets, which of course raises pros and cons. In fact, being too ostentatious and prioritizing the satisfaction of prestige alone, can destroy finances, you know!

Why can showing off often can make life wasteful and destroy finances? The answer is because it's hard to feel grateful for what you have and always want to look richer than other people. So they are willing to buy branded goods, eat at expensive places, or buy the latest items which result in an increase in monthly expenses due to unnecessary things, and in the end it becomes difficult to save.

Therefore, to respond to a phenomenon that is currently a trend, you should avoid showing off your salary as much as possible and satisfying your prestige. Apart from being extravagant, you are always dissatisfied with what you currently have and always want more.

5. Always Set aside Salary for Emergency Fund

An emergency fund is an amount of money needed when conditions are urgent, it can be obtained from the remaining savings other than money for daily living needs. This emergency fund is very important and everyone must have it, because there will always be an urgent need that must be paid immediately. For example, going to the doctor, an accident, or other urgent needs.

Emergency funds are different from savings, so they should be separated with different nominal amounts. Savings is more about planning to buy something at a later date, usually it has been planned beforehand. Meanwhile, emergency funds for unexpected or unplanned purposes must still be set aside so as not to be overwhelmed if something suddenly happens one day.

6. Allocate Part of Salary for Investment

Do you still have your monthly salary left and want to manage it more usefully? Try allocating some of your salary to investments. Investment is indeed the right choice, especially for young people or today because there are many benefits if you do it.

Before doing how to set a monthly salary like this, do research first about the type of investment that is right for you to make it profitable. Many examples of investments can be made, for example to mutual funds, stocks (must be legal), gold bars/chips, land, or property/buildings.

Allocating a portion of salary for investment is actually not mandatory, but this method is financial planning for the long term. Where later the results will be useful, especially if done regularly.

7. Always Record Daily Financial Reports

A wise way to manage monthly finances so you can save, don't forget to always record daily financial reports, both expenses and income. Many people underestimate the recording of financial statements every day, even though this method is important so they can find out where the money has been used.

Always recording reports of incoming and outgoing money every day makes it easier for you to carry out personal financial management. So you can know how much you currently spend, how much you have saved, and how much money you currently hold.

8. Separate Savings with Needs Money in Different Accounts

Sometimes, a person can have difficulty managing his salary money because he only has one savings account. As a result, money is often depleted because it cannot calculate the amount of funds that should be saved and used.

If you have problems like this, try coming to the bank to create a new account. The point is that you can separate where the money is for living needs and saved, so it won't be scattered. The money saved should not be tampered with so that the amount does not decrease, then you can only use a special account for the daily needs budget.

9. Prioritize Paying Bills and Other Obligations

People when they are already working usually have certain bill payment needs, for example installments, paying for children's education, BPJS, taxes, credit, and so on. Although daily needs are necessary, paying bills is also an obligation and must be prioritized first.

10. Prioritize Needs Over Wants

A wise way to set a monthly salary so that you can save, don't forget to always prioritize needs over wants. This is very important, because the need is a mandatory thing that must be met because if it is not done, it can interfere with daily life. While the desire is not mandatory because it will not interfere with survival if not fulfilled.

Setting a monthly salary wisely, it is mandatory for anyone if they already have a job regardless of the amount of income so that they can still save. Don't forget to set aside an emergency fund so that you have a handle on money when an emergency is needed.