The period of being a student is a time when you start to feel a lot of transitions. If during school you still depend entirely on your parents, then when you are a student you must learn to be more independent.
Maybe some of you have started looking for a side job to increase pocket money. There are also those who still get a monthly allowance from their parents.
However, you still have to be able to manage your finances so that the money you get is enough to live for one month. It's even better if the money is left over and can be saved.
Not infrequently, difficulty managing finances even makes you bankrupt. Finally you become bankrupt and have to be super thrifty at the end of the month. Don't do it!
The following is a way to manage finances that you can do since your 20s, no more stories about being a bankrupt student!
1. Find out the various methods of managing finances
There are many methods of managing finances that can be done, depending on how many needs and expenditure instruments you need to do every month. Therefore, don't be lazy to find out various methods by reading or asking directly to people you trust.
Try asking your parents, how best to manage finances when they are your age. If you feel that their methods are less relevant to your current expenses, try reading or watching videos from experts that you can easily find on the internet.
2. Review of Last Month's Expenditure
Reviewing expenses is indeed the most boring and confusing thing. You may be lazy to remember what expenses made you broke in the last month. But if you don't do this, you might be stuck with the same thing in the months to come.
By looking at your expenses in the last month, you can analyze roughly what mistakes happened last month and what you need to do to save more this month.
3. Make a New Plan (and Don't Break it!)
Making a financial plan is not difficult, but not to break it, duh, it's really hard! The best way to avoid breaking your own financial plan is to make it as realistic as possible.
In the early months, don't cut your expenses to the extreme, but start gradually. You can also change habits to save on your expenses. If your money usually runs out to buy contemporary coffee, think about brewing your own coffee at home.
4. Be careful with credit and debt
Having a credit card is tempting, yes. Looks like you can buy anything and pay for it later. However, this thought is very dangerous. Shopping with a credit card means you still have to pay for it, so don't go crazy.
Likewise with debt which is now easily obtained using the application. When you are in debt, there is interest that you have to pay.
If you are unable to pay debts or credit card bills, then your debt will pile up and lead you to a bad financial system.
Not only does it make you bankrupt, but problematic debt and credit card bills will make your name bad and will affect your financial portfolio at the bank. You don't want it to be hard to believe when you buy a house and a car in the future because of your carelessness in paying bills today?
5. Save and Invest
Saving is a basic thing that you need to practice from now on. At least, set aside 10%-30% of your pocket money every month to save. If you are used to saving and want to try more things, then start investing.
You can start investing by buying gold or mutual funds that tend to be minimal risk.
Nowadays, you can also try to invest in crypto, but this form of investment is indeed more risky. Instead, arm yourself with sufficient knowledge before deciding to invest.