Start Managing Finances

Start Managing Finances for Beginners

Managing money can feel overwhelming, especially for beginners who aren’t used to tracking expenses or setting budgets. But don’t worry! Here’s a quick and easy guide to start handling your finances without the hassle.

That’s not all! To become your own financial expert, you need to master the concept of a *rich mindset*. It’s about being smarter with your money. So, are you ready to transform your finances and level up your wealth game?

Having a Rich Mindset Is the Key

Before you start managing money, it's important to have a rich mindset. Rich mindset doesn't mean you have a lot of money, but how you think about finances.

People with a rich mindset are those who know the difference between wants and needs, are always looking for opportunities to increase income, and have a sound financial plan.

This will help you focus on managing money for bigger goals, not just shopping for things that don't matter.

How to Manage Your Finances, Step by Step

Okay, now we get into the main guide. Here are the steps you can follow to start managing your finances better:

Financial Profile

Understand Your Financial Situation

Financial Literacy

Grow Your Financial Knowledge

Financial Habits

Build New Money Habits

• Understand Your Financial Situation
  Start by understanding your current financial position. Try to check all the money coming in and out, 
what is the total monthly income, regular expenses, as well as debt (if any).
If you are still confused about your financial situation or situation, 
You can do the following 3 easy things:
  • Keep track of your expenses on a regular basis
  • Set a budget and check it every month.
  • Monitor the growth of assets you have
  From here, you can know which parts need to be regulated further, whether spending, budget,
Or maybe your assets aren't growing. So, honestly, your financial condition is the key!
• Grow Your Financial Knowledge
  Learning finance and being smart about money doesn't just have to be serious. You can start some exciting financial games!
  In addition to being more fun and uncompromising, financial quizzes can help you become more aware of managing money, avoiding fraud and debt traps, until receiving financial and investment tips.
• Build New Money Habits
  The most crucial way to manage finances that is often overlooked because it sounds' classic 'is saving. In fact, the habit of saving consistently will help you reach your financial goals quickly.
  As you build this habit, make sure you also record the money you have saved in your savings!
• Record Your Income
  Record all sources of income starting from the main salary, bonuses, additional income, or other income. Clear notes, help you see how much total income can be allocated each month.
• Also keep track of your expenses
  Every time you shop or have money go out, make sure it is recorded.
This allows you to track where your money goes and make better decisions later in life.
  You can use the FINETIKS financial application to make recording transactions more practical.
• Split savings into multiple bank accounts
  Create a special bank account to hold all income and expenses. Separate accounts for savings, emergency funds, and everyday expenses so as not to interfere.
  This will make it easier for you to track money inbound and outbound.
• Know how to manage your budget
  Budget management is very important to know the limits of spending and avoid overspending. A clear budget helps you know the allocation of needs, wants, and investments.
• Apply Existing Budgeting Methods or Techniques
  Create a budget for the categories of regular expenses (electricity, rent a house), savings, emergency funds, and entertainment. Use the 50/30/20 budgeting formula: 50% create basic necessities, 30% make wishes, and 20% make savings and investments.
  Don't forget to adjust to your financial situation and do evaluations every month.

Start Managing Your Finances Now!

Now you have a quick guide to start managing finances, from understanding financial conditions to how to create an effective budget. Remember, financial management is not about managing money, but how you make wise decisions to achieve your financial goals.

Try applying the above steps one by one, and see the big changes that occur in your finances. If you want to be more practical, use the FINETIKS financial application that can help you record and manage your budget with the advanced features provided.