How do you manage your personal finances properly?

Talking about money is like talking about diet. Everyone knows the theory. But in practice... that's how it is.

Paycheck is passing by. Old date eating noodles. Even though the intention is to save every month. If you feel that way too, calm down. Not just you.

Managing personal money is a skill. And skills can be trained. These are the 7 most sensible ways that you can do straight away without any hassle. Don't use complicated terms.

1. First, know where your money is going

The biggest problem is not "less pay". But "don't know what to spend the money on".

Try writing down all your expenses for 1 month. From coffee 20 thousand to parking 2 thousand. You can also use cellphone notepads. After a month, you will be surprised to see the post "unclear snacks" can make a million on their own.

Note that this is not to blame yourself. But so that you are aware of where the enemy is.

2. Use the 50-30-20 formula but a realistic version
50% needs, 30% desires, 20% savings/investment. That's the general formula.

But if the Jakarta UMR salary is 50% for needs, it's already tight. So change it. For example, 60% needs, 20% pay debts/installments, 10% save, 10% snacks.

The key is not the benchmark numbers. But you have a clear allocation. So every time you get paid, you immediately leave. Don't wait for the rest. Because usually there aren't any leftovers.

3. Make "accounts untouchable"

Savings that are mixed with daily accounts are dangerous. The temptation to checkout at 12pm is real.

Open another account. No need to use m-banking, no need to bring an ATM. This is specifically for savings or emergency funds. Every payday, auto-debit goes straight to it. Just pretend the money is gone.

Emergency fund at least 3x monthly expenses. So when your motorbike tire gets punctured or you suddenly get sick, you don't need to borrow money.

4. Consumer debt = emergency brake for your future

The difference between productive and consumptive debt. Debt for business capital that returns money, that's okay. Debt for a new cellphone even though the old one is still on, that's dangerous.

Credit card interest rates and loans are fierce. You only pay the minimum, it won't be paid off in full for 5 years.

If it's already happened, the most effective strategy: pay the highest interest rate first. While stopping adding new debt. The pain is only at the beginning.

5. Don't just save, but make money work

Savings are worth less than inflation. 1 million now, in 5 years maybe you can only buy half of that.

Once your emergency funds are secure, start learning to invest. No need to stock up on fried food straight away. Starting from money market mutual funds in applications that are OJK legal. Capital of 10 thousand is also possible.

The goal is so that your money doesn't sleep. At least keep up with inflation.

6. Increasing income is mandatory

Savings has its limits. You can't save until you don't eat. But the sky is no limit to income.

While working as a main job, look for a side hustle. Sell, freelance, become an affiliate. The important thing is that it is halal and doesn't interfere with your main work.

Now there are many ways to get paid for simple things. For example, writing or uploading content. At Zoyalink you can earn income from every view of your content. So tell me about your experience of managing your money, upload it, the first view immediately becomes money. It adds to your savings, right?

7. Review every month, not every year

The budget is not a holy book. Life changes, expenses change.

Set aside 30 minutes at the end of each month. Look at your expense records. Which post is broken? What can I do next month to make it better?

No need to be a perfectionist. If you can only save 100 thousand this month, that's fine. The important thing is to be consistent. Small progress every month is more influential than big intentions but only for 3 days.

The point is this...

Managing personal finances is not about being stingy. But it's about being aware.

Be aware of where your money comes from, what you do it with, and where you want to take it.

Start from taking notes, separating accounts, dealing with debt, investing little by little, and increasing your income. Just do these 5, a year from now you will thank yourself.

Of the 7 methods above, which one is the most difficult for you to do? Story in the comments column.