We know how important it is to maintain our finance so that we may use it continuously and for future use. But how exactly are the best ways we can do that? This is where checking up on our finance status is important. In our online talk show about Check Up Before Check Out: Sharing Session on Financial Health with Finansialku, find out the ways to make sure your finance status stays healthy!
On April 21st, 2022, our Operations team held the sharing session talk show on financial health in collaboration with Finansialku, an app company that focuses on helping people’s financial planning. The talk show was hosted by Ikhsan Azies Ismoyo (Media, Comm, and Engagement Officer) and invited Rista Zwestika (Certified Financial Planner from Finansialku) as speaker. In this talk show, she gave plenty of tips and suggestions about how to maintain your finances at a healthy level.
Speaker Rista Zwestika and Host Ikhsan Azies Ismoyo
So, what were the tips that Rista gave? Let’s check it out below!
1. What is the story you want to build up to?
The story here is you want to become someone who is responsible, independent, and reliable for yourself or for your family. Starting from this current year, set your income, expenses, and investment amount. After that, set a target for 10 – 20 years or more in the future.
Maybe in 20 years you want to have enough finances for your child’s education. Or in 40 years you want to have a certain amount of pension. Make an estimate for each future funds as your target and count the total amount for them all. Can you make that story happen?
2. Invest when you’re ready
Don’t invest too quickly when:
- There’s no budget
- No emergency funds
- Still heavy on instalments
- No insurance
An investment without planning can lead to an income that is not optimal for you. Make sure the listed things above are handled and then you can start investing and choose the product that’s best for you.
Some of the best products that you can invest in includes obligation, stock, stock dividends, mutual funds, and P2P lending. They can provide you a good annual return from 5% - 20%.
3. Have a clean cash flow
If you have a certain amount of income, set your monthly expenses amount accordingly so that it’s not more than the income you receive.
It’s important to create a budget for yourself so that you won’t end up spending more money than you need to. Categorize your expenses according to your salary, investment, and passive income. Determine which ones are for your main responsibilities (taxes, insurance, monthly groceries, etc.) and which ones are for leisure.
4. Prepare emergency funds
Create a cash reserve that you can use for unexpected expenses. This could be for hospitalization, house renovation, repairs, and other things that you may suddenly encounter.
The amount of cash reserve should be according to your marital and family status. If you are:
- Single: it should be 6x your income amount
- Married: it should be 9x your income amount
- Have kids: it should be 12x your income amount
5. Where should you save money?
There are four main ways that’s best to save your money which are safe, liquid, and reachable. Your bank account, a deposit, gold, and mutual funds. And coming back to the previous tips, set the amount for each way that is according to your income.
If you’re confident with your income to spend more on investments, do so. If you want a continuous cash flow, mutual funds and gold are a great way to keep it flowing steadily. It all comes back to the financial target you want to achieve. But once again, just make sure you don’t spend more than you need to.
And those are the tips that Rista gave. So, are you more motivated now to maintain a healthy financial status? If you want more tips, start downloading the Finansialku app and find out more way to secure your finances better!