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Strategy to maximize finance this year

Productive things to do. Financial problems always make us pat on the forehead. Maybe because the global economic stability is sluggish, the current situation, to personal problems.


Actually, financial problems can be overcome with disciplined financial arrangements.


But certain factors can undermine this. Desires, increased needs, emergencies and so on. We are always amazed that so many people spend a large part of their lives at work and completely neglect their personal affairs.


Many business people who work want their professional life to be in order, and admit that their personal affairs are in turmoil.


For small and medium business owners


Allocation of funds according to needs and the right financial planning strategy are the main keys in order to survive in the midst of intense business competition.

Now, the main goal of your business is no longer getting as much profit as possible, but also how to manage your income so you can set it aside for business development capital.


Even though your business is currently booming, you must remain vigilant to face unexpected events such as a decrease in sales figures and an increase in the price of raw materials for products.


In addition to getting regular monthly salaries, an employee sometimes gets bonus money from the company as work performance benefits.


This moment of disbursement of money is the time to look forward to. Various images have crossed your head, buying new gadgets, shopping for clothes.


or realize vacation plans. Usually in a matter of days, the bonus money will run out without a trace and affect the main finances.


They don't know where they are spending their money and often have no plans for their financial future.


Strategy to maximize finance this year

Most likely they do not have a financial system, and may underestimate financial problems.


They don't have the system to tackle this most important area. Disorganized household documents, piling up financial documents in the corner of the house, or simply forgetting about them.


If you want your life to be better, you should start paying attention to your finances.


Indeed, life is not just about financial matters. But it cannot be denied that money plays a big role in determining the quality of our life.


It will be very good if you can manage and manage your finances well because later you will also get the positive effect.


And please don't think that financial planning is only for people with just enough economies.


If you happen to have an abundant financial condition, that's a good thing for you because you can easily get what you want by buying it.


However, that is not an excuse for you to always spend your money and go wild without planning. Remember, life is like a wheel. You can't always be on top.


When you are at the top, you have to be prepared when you are down there. And that is the essence of the purpose of financial planning.


So, what can you do to plan your finances well? Here are a few things that might help you.


The main purpose of financial planning is how you can meet your needs and save money.


When it comes to fulfilling needs, of course you have no more questions because we do have money to spend.


However, for matters of saving, we will discuss it later. What is clear, it is you who have to manage money, not the other way around.


It's a good idea to provide clear portions for your shopping categories.


By setting clear savings goals, you can start your heart out by setting real goals that you can achieve this year.


Let's say adding a month's payment to your emergency fund.


You can schedule your money to be directly deposited into your savings account or your online account.


On the other hand, you can also contribute to your retirement fund.


"Money can be found tomorrow" is true, but if you don't organize your personal life, you won't have much of a future to look forward to.


Avoid the excuse that you are too tired, have no time, and don't know how.


Reconsideration about managing your finances, this is really important for your future.


There are strategies you can do to maximize your financial condition this year, including:


Pay Off Debt in Advance

Before spending money, do an evaluation of your personal financial condition. Calculate how much debt installments must be paid each month and compare it with monthly income.


If the debt ratio exceeds 30%, then your finances are classified as unhealthy. This condition must be corrected before spending money on this and that.


Use the money received to pay off or at least reduce the existing debt. Most of the people don't realize that paying off debts should be the top priority.


The longer the delay in repayment, the greater the interest. Without realizing it, the debt burden has multiplied many times. If you have enough debt obligations, it is advisable to prioritize payments.


Prioritize paying off consumer debt first, such as credit card debt. The next priority is productive debt such as trade payables, for example.


Paying off debt will be smaller and meaningful steps for your financial condition this year.


A zero percent interest credit card, allowing you to combine your credit card balances using balance transfers.


However, you must have good credit to qualify.


Next, identify a strategy to pay off your debts with small balances first.


You can start with the debt with the highest interest rates first to help reduce the total that you end up paying.


Identify ways to reduce expenses

One surefire way to reach your financial goals is to spend less money. But to do that you have to have a solid plan.


Even if you are on a budget, it is always wise to update your plans and find out how to act accordingly. Start by collecting all your bills from the last three months.


Then, list routine expenses and rank them in order of importance. Bank, Car, Children, Home, Medical, Insurance, Investments, Tax, Utilities, etc.


Put your daily needs, such as housing, food and health care in the first place.


Maximize Fund Efficiency

The most effective way to set aside money from business results can be done by saving on company operating funds.


Efficiency is not always synonymous with cutting operational costs. Instead, this strategy aims to find opportunities to get more profit with minimal expenditure.


In addition, you also need to keep track of the amount of business expenses each week. Ideally, evaluation of expenses and income is done every month.


However, evaluations that are carried out every week can actually have an effect in giving your business spending patterns.


From the expense data, you can see that even the smallest expenses can add up over time. Later, you can determine which posts require efficiency of funds.


Financial resolution


Manage Your Financial Future

This area should be the top priority. If you are doing nothing because of too much effort, think carefully about this.


What will happen if you lose your job, have an accident and receive no income for 6 months?


How do you (and your family) survive financially? Do you have regular insurance?


 Where will you be in the next five years? Maybe retired and retired? Or maybe you have a retirement fund that you hope is enough to live on?


Unfortunately, too many people misunderstand how a retirement fund will be the answer to a secure retirement.


Hope is not enough. You have to be proactive and find people who can help you. But be careful who you take advice with and what motivation is behind them "selling" their idea.


Educate yourself on how to use your hard earned money. So that you can create wealth should be the top priority.


After all, if you're not interested in securing your financial future, who else?


Set financial goals

Even though your business or job is engaged in small and medium enterprises. You need to have a broad target and reach.


Set a long-term business plan and target for achieving your business reserve fund at a predetermined time.


If your business already has the public's trust and a wide market reach, you can aim for a much larger target audience.


You may not have a business right now, but the plan has actually been around for a long time.


It's time to act, invest or want to own a shop. Find out quickly how you can implement your goals.


There are already many tips circulating, for implementing your goals. Youtube, articles, or seminars.


There is also a free one, make sure you listen in detail, don't press the skip button. You have to really understand it.


Having knowledge will make it easier to make decisions and take action.


Make it Investment Capital

If the bonus money is still left, the idea of ​​investing can be taken into consideration.


However, because there are a variety of options, you must carefully choose the right type of investment so that your money grows as expected.


Adjust it to your financial goals. Some investment instruments that can be alternatives are:


  • Gold. Don't buy gold wrong when investing. Buy gold in bars or coins. Not in the form of jewelry. Gold investment is generally for the long term, at least 2 - 3 years.
  • Deposit. If you are looking for a safe investment with a high enough return, deposits can be an attractive option. Deposit interest ranges from 6% - 8% per year (tax excluded). Don't forget to activate the roll-over system so that your deposit period can be automatically extended.
  • Mutual Funds. Mutual fund investment does not require large capital and has significant returns. Several banks and non-bank financial institutions offer mutual fund products starting with small capital.
  • Property. If the bonus money is large enough, investment options in the property sector are also worth considering because it has the potential for promising value increases. You can consider buying a house or a plot of land.

Create a special account bank

This needs to be done so that expenses can be monitored clearly. Having a special place to raise reserve funds is absolutely necessary for the company.

You can open a business savings account to separate your reserve funds from other operating expenses.

Or, you can invest the reserve fund in instruments that have a high resale rate, one of which is gold. If you are a worker, separation of accounts will be very useful.

Even if you withdraw money in savings from the results of your work. Business savings are not interrupted.

Never mix up your job savings and business savings. Your business might stall or stop. Your efforts will be in vain if this happens.


Determine the share of the financial share

For simplicity's sake, let's think of your salary as your only source of income and you get that salary every month.

Consider your total salary including bonuses etc. as 100%. You must budget a maximum of 80% of your salary to meet the needs of your life.

For those of you who are well paid, maybe this is very sensible and very easy to do. However, if your salary is mediocre or even less frequently, 80% is a very small number.

Why is it small? Take for example your monthly salary is 1000 and you have to support your children and your wife. If you have to allocate 80% of your salary for your living needs for a month

That covers basic needs, school fees for children, and others, meaning that you can allocate 200.

This figure is theoretically small and insufficient. But you are strongly advised to always be able to manage your expenses.

How can 200 that can meet your needs. It's tough, but you have to try it. Maybe at this point you will be wondering why only 80% is allocated for the necessities of your life?

Why not 90% or even all of them? You should know that the remaining 20% ​​you will allocate for savings and for unexpected funds. You can divide them into 10% or 15% and 5% respectively.

This savings will serve to reserve your funds in the future, such as when you are planning to buy a house or for your child's school entrance fees.

While unexpected costs are costs that you will use for things that are outside of your planning, such as your child or you suddenly getting sick.

If you do not use these funds, you can allocate them for your basic needs, or become part of your savings. The percentages and allocations above only apply if you are not in debt.

If there is a debt that you have to pay, please set your own percentage of the debt as long as it doesn't interfere with 80% of your basic needs allocation.

Consistently cut a certain percentage of profit as a reserve fund

Business owners also need to set a reserve fund budget, so as not to sacrifice other finances. Try to set aside at least 20 percent of your total net income.

This strategy can make a big difference for a business in the long run. The existence of a reserve fund can help overcome crises in the company that often come suddenly.

Thanks to the reserve fund, you can at least minimize the risk of losing profits and resources without having to sacrifice business existence.

Prepare an emergency fund

Disasters are unpredictable. It can happen at any time and happen to anyone, including you.

That's why it is very important to prepare funds for emergency needs. So when a disaster comes, for example, you lose your job

or there is a family member who has to be hospitalized, no need to bother looking for money loans here and there.

Ideally, the size of a single emergency fund is the equivalent of six monthly expenses.

If you are married and have children, the emergency fund that must be prepared is greater, which is equivalent to 9-12 times the monthly expenses.

If you do not have an emergency fund or one already exists but the amount is not yet ideal. So it is better if some of the bonus money is set aside to cover the emergency fund needs.

Limit new inventory purchases

When a business experiences a surplus, many business people are tempted to buy business inventory that is not really needed.

The latest gadgets and electronic goods can take up the most of your business funds, especially if you run an online-based business.

Every time you buy new gadgets and electronics, your business's net income is also reduced by a significant amount.

It's a good idea to maximize the function of devices and other electronic devices as well as possible

Instead of having to follow trends without considering the financial condition of your business.

Don't Forget Yourself

This is mean to reward yourself. What is important and you must remember beforehand

If the debt is paid off and the emergency fund has been fulfilled, then you can use the money to please yourself

For example, shopping for the latest collection of clothes, buying gadgets, the latest models, or having fun traveling to tourist attractions.

If you have already set 'awards' in your goal list. Considerations need to be done, so that things that are not desirable will not occur.

Giving self-respect doesn't have to be extravagant or excessive. Because our desires can be stronger when we feel that our economy is capable.

In fact, instead of wasting bonus money on fun, you can use it for a wiser use. These smart ways not only make your money last longer, they can also multiply.

Therefore, don't waste financial lessons in past years. By setting clear savings goals, it is not impossible that you can reach financial maturity this year.

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