The size of your salary often affects the way you manage it to avoid financial shortfalls. Especially if your salary is a fixed income, ie a fixed monthly salary and your living needs often fluctuate.
Those with low salaries will find it difficult to spend money on many things, such as: emergency funds, college tuition, pension funds, car purchases, etc.
It is not uncommon for money to run out in the middle of the month. This can happen because they can not properly manage their monthly salary to meet the financial needs of the family. In addition, every family should have plans for the future, such as: vacations, their own house and car, their children’s university education and retirement funds. These plans are expensive and finding extra income is not easy.
Therefore, you need to know some ways to manage your home finances with a small salary to carry out your plans.
You should not be annoyed or disappointed by a small salary, the priority is to be grateful and manage your salary properly. See Cermati.com’s description of 12 ways to manage your finances with a small salary.
11 ways to manage your home finances with a small salary
1. home installment / payment estimate.
Many people find it difficult to manage their family finances because home payments (mortgages) have cut off much of their monthly salary. It is recommended that the mortgage does not exceed 25% of the total salary received each month.
Tips & Warnings Look for mortgages that offer the lowest payments or if you can not afford a mortgage, look for cheap rent. There should be offers that you can afford. The key is to keep looking for information.
If you have your own home, you can allocate a portion of your salary to savings or investments. If you are free, you can rent a room in your house to 1-2 friends. The money you make from renting your room can help you make your mortgage payments cheaper and is a good way to invest. This way, you can repay your mortgage and spend some money on other investments, such as savings and an emergency fund.
2. Plan your monthly purchases properly.
Financial expenses tend to occur when you use money for your desires, although I want them not necessarily needs. The best way to use a small income is to make a monthly spending plan with a written budget.
Spend the money according to the plan you make. When it comes time to buy what you need, you already have a budget for your purchases. However, do not spend more than the amount you have planned, because the excess money is allocated for other needs.
Tip: Schedule your monthly budget in writing, splitting your to-do list into two parts: primary needs and tertiary needs.
Primary needs include: food, transportation, electricity, water and telephone bills, home, motorcycle and car payments and more. Tertiary needs include: a budget for clothes, travel and a budget for socializing with friends or colleagues.
Scheduling your grocery list is very efficient because with large quantities of purchases, prices will be much cheaper so you can save more on groceries and save more. In addition to the habit of making a monthly shopping budget, you should also stick to your financial budget.
3. Buy items you can still buy
Buying things you can still use can save you money, such as used cars, used electronics, used furniture, etc. Many people offer cheap offers for used items that are rarely used, and some have never been used.
Sometimes you can find an item whose box has been opened but the item inside has never been used but is not being sold at the price of a new product because the package has been opened. There are many online stores that offer such used items, you need to be diligent in searching them on the internet.
Tips & Warnings Buying second-hand items that can still be used or second-hand items like new ones will really help you save money. For example, for families who have just moved and need furniture such as tables, chairs and other home furniture.
It is better to buy second-hand items that are still good in retail stores, flea markets or online stores, but do not forget to haggle. With a little spray, used tables and chairs will look like new.
4. have automatic temperature control
Automatic temperature control can help you save money by making it easier to save money. Choose an air conditioner with lower power consumption temperature control to save energy and money, even if the purchase price is slightly higher than a conventional model.
Tip: Even if it is programmed automatically, you can manually change the temperature in your home as it suits you. An advanced air conditioning system detects when the owner is not at home, thus automatically reducing energy consumption, which is more efficient. Although slightly more expensive, they are more energy efficient and more durable. Nowadays, many air conditioners are designed automatically according to the required power.
5. Use credit cards wisely
Credit card shopping is easy and you can buy anything. Credit cards can help you manage your finances if you use them wisely, such as: using the offers provided to buy the items you need.
But credit cards can also lead to long-term debt if you use them carelessly. Studies have shown that credit cards are the easiest way to spend money, because in addition to the amount of money spent, interest and administrative fees are also charged.
Tip: If you can not control your credit cards, it is better to forget them if you want to save money. The habit of using credit cards carelessly will make you waste money and have serious financial consequences, so do not let your household get into trouble for credit card debts.
6. cost savings in multiple activities
You can do many activities at the same time to save money, such as: buying lunch while doing chores outside the office. This will save you more on gasoline than making a lot of inefficient trips.
Tip: Set aside the difference regularly in your savings account. Even if you live close to where you work, you can have lunch and drink coffee at home. There is always a way to save money to save money, depending on yourself.
7. Drive less.
You can walk, ride a bike or take public transport instead of driving your car to the store or to work.
Tip: You can save money on fuel and also have the added benefit of a healthier body if you exercise more.
8. Look for extra income.
Use your free time to look for extra income. There are many ways to earn extra income, such as selling loans, working as a freelance writer, online sales and so on, as long as it does not interfere with your main job. The more income you have, the more salary you can set aside for savings.
9. Reduce eating out or ordering food online
Eating out at restaurants and ordering food online from time to time is okay, but if it becomes a regular habit, it will quickly eat up your salary.
Eating in a restaurant costs at least 4 times more than eating at home. Not to mention, if you order food online often, of course the cost of your food will increase.
Tip: If you want to save money, cook your meals at home. Try to eat in restaurants or order food online (Go Food or Grab Food) only occasionally, not every day. Do this and see how much money you can save by cooking on your own.
10. Use PayLater wisely.
PayLater is nothing new when it comes to meeting household needs. The convenience of getting online loans through credit or e-commerce software can make you forget about it.
Make sure you use paylater wisely, not for the needs of consumers or use paylater because you want to shop instead of important needs. You need to understand that repaying the debt is the same as having debt, you still need to repay it and try not to delay repaying the debt.
11. Choose a data plan and use Internet data sparingly
The Internet has become a basic necessity for Indonesians. Especially now that everything is online, whether it is work, business, or school / education, everything is done online.
You will definitely need an internet data packet or WiFi connection at home. To save money, try to choose an Internet or WiFi data package that suits your needs at a price that fits your budget.