Everyone has their own lifestyle and standard of living. Whatever your lifestyle, make sure it fits your financial capabilities. Because not a few people feel that their income is not enough to meet their lifestyle needs because they are wrong in managing their finances. Here are some ways you can do to balance your lifestyle with income.
1. Know how much income you have
If you want to live your life within your financial means, then it's time to get to know yourself. How much is your income and what is the total net income. This is important in order to know how much income can be set aside.
2. Create a budget
List your monthly budget in the form of categories such as budgets, wishes, bill payments, and savings. It's okay to change your budget in the middle of the month because some unexpected events will require a bit of improvisation.
3. Increase income
If you are the type of person who is difficult to control expenses or expenses are greater than income, then try to find other income so that your income can be balanced with your expenses. The key is to do what you can to make enough money to pay for everything you need in life, including health insurance for you and your family.
4. Don't follow other people's lifestyle
Try not to be provoked by other people's lifestyles. Because everyone has a different standard of living. If you force yourself to follow other people's opinions, of course you will be overwhelmed in living life and of course make yourself worse off. Instead, start making the best version of yourself to get what you really want.
5. Do financial post
Prepare several posts on your income, such as posts for daily consumption, installments or debt, savings or investment posts, social or helping, and lifestyle. For installments or debts, the allocation of funds cannot be more than 30 percent of income. For savings or investment posts, a minimum of 10 percent of income can be filled. Then after that, other posts just adjust. To fill the lifestyle post, allocate a maximum of 20 percent of income.
Signs Your Lifestyle Doesn't Match Your Income
Unstable finances are caused by an excessive lifestyle. Lifestyle usually just happens without realizing it. But if this lifestyle is the cause of disaster, then it must be realized immediately. Set new good financial management procedures and set long-term financial goals for financial success in old age. If your finances are unstable due to any of the signs below, leave the bad habit immediately.
1. Monthly salary always runs aground prematurely
This point can be used as the main benchmark to check the actual lifestyle. There are two things that are interrelated. First, get used to shopping without planning. Second, get used to following other people's styles to increase status. Whatever the reason, you need to be more careful in managing your finances so that your salary is always left over every month. Check which posts should be removed, then replace them with more important posts.
2. The percentage of savings decreases every month
A person is recommended to save 30 percent of the total salary every month. The goal is none other than to meet the needs in old age. In fact, the percentage of savings is decreasing every month. Initially 30 percent, gradually dropped to 25 percent, then 15 percent until almost no saving. If you regularly save 30 percent of your salary, in a year you can collect tens or hundreds too. So that in a few years you can already pay a down payment on a new house for investment in your old age. In order for savings to continue to be filled, brake the desire for consumptive spending.
3. Not being able to meet basic needs
Buying food, paying for electricity, water, credit, internet, insurance and paying installments are basic needs for some people. If you can't meet any of these basic needs, it's a sign that your finances are in trouble. If the budget for buying food is too large, you can reduce food consumption so that your salary is sufficient to cover other needs. Spend money according to priorities, not out of desire.
4. Online shopping becomes a hobby
The ease of payment provided by online shops should not be viewed as something profitable. On the contrary, it encourages you to be consumptive. Brace yourself against the temptations of online shopping. Use vouchers and cashback wisely, which is to reduce expenses, not increase expenses.
5. Hunt for luxury and classy goods
Wearing luxury and classy items will certainly raise your image in social circles. But, you don't need to force yourself to wear luxury items if your financial condition is not sufficient. Especially if you justify a loan to buy the item. Even cheap items can beautify your appearance as long as you know how to combine them. Even though it's cheap, pay attention to the quality of the goods so that you don't often buy new things in the future.
6. Credit card debt is piling up
If paid regularly, credit card debt can be reduced slowly. If what happens is the opposite, gradually the income you have will run out to pay credit card installments. In the end you no longer have money to meet daily needs, including buying food. Try to recalculate the credit card installments that need to be paid. If the percentage is more than 30 percent, you should be able to live twice as frugally in order to stabilize your financial condition. Trim unnecessary needs, such as snacks or shopping for clothes.
7. Feeling rivaled by the wealth of others
Do you often envy because your friends often change branded bags? Well, throw away the envy. This will spur you to spend more money just to match her style. You need to remember, life is not a competition, so there is no need to compete with others to show who is the greatest. Enjoy what you have. If the finances are already in chaos because of the nature of "feeling competitive", immediately discuss it with a financial consultant.
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