Manage your money to improve your finances

Hello there,

Money management is about making the most of what you have. It sounds pretty simple, right? Even so, it can take know-how and persistence to get on the road to better financial health.

If you’re interested in making better financial decisions, these money management tips could help.

1. SAVE YOUR INCOME AT LEAST ONE-TENTH

This is a basic thing to fattening your bank account. Every time you got an income such salary, maybe doing a business, whatever the income are, you need to spend at least one-tenth. The rest nine-tenth you can use it for monthly basis.

2. CONTROL YOUR EXPENSE

Once you used to save your income for one-tenth. You have remaining nine-tenth to use. Now is time to list all your expenses.

For example, i have a list of expenses like :

• Electricity bill
• Phone bill
• Transportation
• Meals
• Charity
• Netflix
• Gym
• Swimming

Those expenses are incurred on a monthly basis. Always reviewing which ones are essential and which ones can be reduced or eliminated. Let say, this month, i don’t want to spend my money to use Netflix.

So, this month my list of expenses would be :

• Electricity bill
• Phone bill
• Transportation
• Meals
• Charity
• Gym
• Swimming

Make all expenses above to be use and start to stick on it. if you succeed in running this list of expenses, you will get used to it.

Budget your expenses so that you have enough to cover your necessities, enjoyments, and fulfill your worthwhile desires, without spending more than nine-tenth of your earnings.

I know, we do not all earn the same. Some earn much more than others. Some have much larger families to support. That is why we need to review it regularly.

3. MAKE YOUR MONEY MULTIPLY

Once you develop the habit of saving a portion of all you earn, you can put it to work. Then you can capture the power of compounding interest or cash flow investments.

By saving at least one-tenth of your income regularly, you can become an investor sooner and have your money begin working for you. Now it’s time to multiply your money.

There are four basic areas of investment  :  paper assets, real estate, commodities and a business.

As a beginner, you may start to invest gold/stocks/land/house/villa/apartments or maybe crypto(?)🤷‍♂️ or creating a business that other people might needed.

When i made my first investment, i purchased an insurance policy along with the Rupiah Equity Fund by prudential. I began investing in 2010, when my first son was born. Secondly, when my daughter was born in 2014, I started to add another insurance policy with same investment as before.

It’s been a long journey, and as a result, I’ve gained the benefits of what I’ve done over the past decade.

4. PROTECT YOUR TREASURES FROM LOSS

Make sure you know what the risks and should know from the expert one before you invest. Be not too confident of your own wisdom in entrusting your money to the possible pitfalls of investment. It’s better by far to consult the wisdom of those whose experience in handling money for profit.

5. MAKE OF YOUR RESIDENCY A PROFITABLE INVESTMENT

If you set aside nine parts of his earnings upon which to live and enjoy live, and if any part of this nine parts he can turn into a profitable investment without detriment to his well-being, then so much faster will his treasures grow.

Owning your own home is almost always a good idea. There are times, however, when the rental market is so weak that it’s cheaper to lease. This is true in some places right now. It’s not hard to figure out the relative merits of renting vs. owning.

I once lived in my in-laws house, where at that time I experienced a flood.

From that moment, i thought I had to buy a house immediately. I didn’t want my children and wife to be in trouble because of its flood in the future. Then, in 2017, I decided to bought a house.

6. ENSURE A FUTURE INCOME

It should a man to make preparation for a suitable income in his days to come, when we are no longer young, and to make preparation for his family should be no longer with them to comfort and support them.

Providing for retirement, can be done in many ways: with a simple savings account, by buying property, by investing in bonds and other debt instruments, or by buying businesses or shares in businesses.

Employing the power of compound interest over time is the secret to retirement investing. The longer you have to allow your savings to compound, the less you need to save. If you are middle-aged already and have nothing set aside, you’ll need to do more than simply save a tenth of your income and wait. You’ll have to find a second stream of income.

7. GROW YOUR SKILL TO EARN

The more wisdom we know, the more we may earn. That man who seeks to learn more of his craft shall be richly rewarded. If he is an artisan, he may seek to learn the methods and the tools of those most skillful in the same line.

As a middle-aged like me, i do always learn something new, to keep my passion on fire 🔥 and still hoping my goal would be achieved one day.

Yea, one day 😊☺️.

What i have written here is based on a book and summarized a few things that i had read. It called Richest Man in Babylon. It’s a great book to read for your personal finance as well.

If you want to learn about my other note, you might visit here for code and database section or even management , it is still related on what you wanted to learn in all about technology itself.

That’s all folks! Happy learning as always! 🥰😍