The digital age has brought about more ways to earn and spend money at home. Ecommerce promotes accessibility to shops from miles away, and the increase in remote jobs has allowed limitless possibilities. PT Unified Trade Jakarta experts have surmised that you still need efficient finances handling even with high income. 

You need to follow an adequate budget plan that takes present circumstances and future goals into consideration. Aside from that, you have to be smart about how you control your money so that you can appropriately balance your investments, savings, income, and spending.

Here are some tips on how to manage your finances in 2021:

1. Adhere to your budget

A budget is your guide on how much money you can afford for specific spending. Ideally, it would help if you accommodated your lifestyle based on your budget. You can study the past three months’ worth of statements to determine your monthly budget.

PT Unified Trade Jakarta suggests two strategies for dividing your income:

  • 70/20/10 – 70% expenses, 20% savings or debt clearing, 10% investments
  • 50/30/20 – 50% needs, 30% wants, 20% savings or debt clearing

2. Reduce or eliminate debts and loans

To efficiently handle your finances, you should get rid of payables such as debts. The primary reason for doing so is the fact that interest will build up over time. If you don’t get rid of your credit, you will end up paying more than three times the amount you originally spent.

3. Get motivated to earn more than you spend

One of the secrets to managing your finances is taking control of your money mindset since it’s the key to building long-term financial stability. People often fall into the debt trap because they tend to spend more than they earn. Sometimes, the thought of having to work two jobs is too much, so you have to build your drive first.

Here are ways to build your earning motivation:

  • Goal-centered approach. Create short-term and long-term goals to develop the feeling of accomplishment every time you earn or save more.
  • Balance your finances. Take a look at your budget and income whenever you feel demotivated to earn more money.

You should consider getting investments with PT Unified Trade Jakarta or taking up part-time jobs if your current full-time job is not enough to sustain your bills and other payables. You can also try to renegotiate your current salary if you’re not comfortable finding additional income sources.

4. Research worthwhile investments

You should value experiences instead of luxury items if you want to be smarter about money. You can invest that amount in experiences, such as travel or taking up online courses, instead of buying a particular luxury brand. In general, purchased items depreciate, whereas experiences are more valuable with time.

The Bottomline

2021 is an excellent year to start thinking about long-term stability with high-level money decision-making skills. There are unlimited possibilities of earning; therefore, you must develop essential handling skills to make the most out of your income. Your future self will thank you for it.

Adam Zellner

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