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Managing cashflow is not easy. Even though we make careful plans every month, urgent needs often make our financial planning messy and uncontrollable.

To avoid this situation, you need an effective strategy for managing your finances. Here are practical tips to keep your savings growing:

1. Record Income and Expenditures

In order for savings to increase, we must get used to recording income and expenses on a regular basis. We should make expense posts, expense lists, and savings targets that we will allocate each month. That way, we can see posts that exceed the target, which can be an alarm when spending money. This will make managing our finances easier.

2. Pay Attention to Small Expenses

We often neglect small expenses, such as morning coffee or snacks, on the side of the road. In fact, if calculated over a month, the number could be fantastic! So be more careful in spending, especially on small things that, without us realizing it, have quite a big impact on our expenses every month.

3. Shop according to needs, not lifestyle

Avoid buying things just for prestige or following trends. Prioritize buying stuff you need. Remember, trends always come and go, but your needs are always there.

4. Make a priority list of expenses

Make a priority list of needs, starting from the most important to the least important. Start from those that are very urgent to those that can still be postponed to be fulfilled. By creating a priority scale, we can more easily manage expenses.

5. Make future targets

Make financial targets for the future, such as buying a house or private vehicle. With a clear target, you will be motivated to save and develop the right strategy to achieve it.

6. Discipline in Saving

Discipline is the key to success in saving. Try to save the remaining money at the end of the month. Set aside special funds for savings at the beginning of the month. Use a separate account if necessary so you are not tempted to use it.

7. Don't be afraid to invest

Investing does have risks, but it also offers promising potential profits. Learn and practice investment strategies that suit your financial profile.

Managing finances wisely requires commitment and discipline. Remember, the key is to start small and be consistent in implementation. Good luck trying it and feeling the benefits!

Source: mediakeuangan.kemenkeu.go.id