An easy way to manage expenses and finances

    Hello Luna, see you soon. Welcome to the Talking about Money channel. There may be some people who are forced to lose part of their income due to the corona crisis. On the other hand, many items have increased in price. From price hikes on masks, multivitamins, preservatives, and more. Prices for basic groceries have also started to rise. It goes without saying that as the exchange rate of the rupiah against the dollar fell, so did the prices of imported goods. Perhaps you are confused about how to manage your finances during times of stress like the present?

An easy way to manage expenses and finances

    Do you need to eat less, or do you have to borrow to cover your living expenses? What costs do you have to sacrifice? In this article, we'll discuss how we're managing our finances in the midst of economic pressures like the one we're currently in. Especially from a production perspective. As you can see, what we generally need to do when our income is declining and commodity prices are rising is saving money.

    It sounds simple, but many people don't understand the difference between thrift and effective and purposeful financial management. Here, we'll learn together not only about the need to save money, but also how to manage finances so that important, high-priority needs can be met.

    How do you do that? First, you need to know your needs based on their importance and urgency. What you think is important. The point is that something has to exist in your life and if it doesn't it will affect you negatively. Something that needs to be done in the near future. Oh, important or urgent needs are not the same for everyone. Because everyone has different requirements and backgrounds. For example, students certainly have different needs than employees. Unmarried workers certainly have different needs than married householders with maintenance obligations. Housewives are also different.

    Let us now outline the needs of our lives in order of importance and urgency. Draw a simple graph with vertical lines representing important and unimportant, and horizontal lines representing urgent and non-urgent. Here you can see that there are four types of needs based on their importance and urgency. The first is important and urgent. The second is important but not urgent. The third is less important, but more urgent. The last one is neither important nor urgent. Let's discuss them one by one. The first is a critical and pressing need. This is a need you must meet and it is urgent. what is an example?

    For example, groceries, drinking water, medicines, personal care, Internet credit, electricity, and rent payments. Well, but not everyone's needs are always the same. For example, for an online motorcycle his taxi driver, gasoline and credit are important and urgent needs related to income. For healthcare workers, self-protection is critical and urgent as this coronavirus outbreak continues. And for us ordinary citizens, healthy food, multivitamins and hand soap are important and urgent to protect ourselves from the corona outbreak.Remember not everyone's needs are always the same. please What is important and urgent to you may not be important and urgent to someone else.

    The second is an important but not urgent need. In short, this is a necessary but not urgent matter that needs to be done now or in the near future. what is an example? For example clothes. You need clothes, but you don't have to buy new clothes right now. I still have old clothes. Another example is fuel or transportation costs. Transportation costs are important, but may not be urgent. Yes, unless you work as a driver, right? The third is a non-critical but urgent need. Is there something urgent but not important?

    There is! This example is a reduced item. For example, you don't really need a new smartphone because your old one still works perfectly. But there are new smartphones with discounts and discounts end in 24 hours. This item isn't really important to you, but it's urgent because the offer is expiring in the near future.Yes, it's very simple. If you want to get this product at a discounted price, you should buy it in the near future. Well, it's often very difficult. Don't you often see online shopping flash sales where you end up not using the product because you push yourself to buy it even though you don't actually need it? Come on, admit it. Finally, needs that are neither critical nor urgent. You don't need it and you don't need to buy it right away. In short, this is something that, even if it doesn't exist, has no or significant impact on your life.

    For example boba or bubble milk tea boba is not important or urgent to me. Or, for example, an expensive branded watch is neither important nor urgent to me. But remember, what's not important or urgent to me isn't necessarily important or urgent to you. you know what you need. Simply put, what can we save? So if you want to save money, start by eliminating or removing things based on your priorities: eliminate things that aren't important or urgent first. In short, don't spend your money on these things. Remember that nothing is important or urgent to you. It doesn't matter if you don't have it or buy it Of course, why don't you rely on Boba? Yes, less dependent. Remember that you want to manage your finances by spending less. In other words, you need to be able to control yourself as well. Want to save more?

    All right, get rid of the unimportant but urgent stuff. Don't be fooled by discounts and flash sales. Remember that the goods are not important and you don't necessarily have to use them. Sometimes discounts just make you happy, but unknowingly you become a consumer and splurge on the non-essentials of your life. Still not enough?

    Remove anything important but not urgent. If you have limited finances, you can put off important things that are not yet urgent. After all, you can also buy later, right? Urgency This is what we must strive to achieve. If you have limited finances, focus only on things in this category. Don't forget to cut down on unnutritious foods just for a bowl of boba or a pack of cigarettes.

    Now try mapping your needs. All your life, you may have wasted money on things that weren't important or urgent. OK, that's all I have to say. I hope my tips help you. If you'd like to share your financial management tips and tricks, do so in the comments. It's a lesson for others too. See you in the next article.

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